Do you want to learn what is automobile liability coverage? It is one of the important aspects of auto insurance, which provides financial protection to drivers or individuals in an accident.
It becomes more valuable when you are legally responsible for causing injury or damage to others—the liability coverage safeguards against the financial burdens you may face from an accident.
In this guide, we will develop the different aspects to know how it can help both drivers and others. So, let’s read to know what is automobile liability coverage.
What is Automobile Liability Coverage?
Automobile liability coverage is part of an insurance policy that offers financial security to drivers who accidentally injure someone and damage the property or something else while driving the vehicle.
It is important to know that this liability coverage only covers the damages and injuries of the third party, not the driver and driver’s property. However, the loss of the driver will be covered by the other part of the insurance policy.
The two main parts of the automobile liability coverage are:
- Bodily injury liability
- Property damage liability
However, the liability coverage rules may vary depending on the state. But the following insurance policies remain the same in every region.
- Liability insurance provides financial protection for the damage and injuries of the third party.
- Bodily injuries liability covers all medical expenses to all people involved in the accident.
- Property damage liability covers the expenses of the vehicle repair.
Liability Car Insurance vs Full Coverage
Liability car insurance and full coverage insurance are two different types of insurance. Both insurances provide different types of protection. Here are some differences between them:
Liability Car Insurance
- Liability insurance has two components: property damage and bodily injury.
- Bodily injury liability covers the third party’s medical, legal, and misplaced earnings.
- Property damage insurance covers all expenses of replacing or repairing the third-party vehicle and property.
- Liability car insurance doesn’t cover the driver’s injury and driver’s vehicle damages.
- It covers the injuries and damages you may cause to others due to an accident where you are at fault.
Full Coverage Car Insurance
- It is not a certain policy but a combination of different coverage types to provide comprehensive protection.
- It provides liability coverage, collision coverage, and comprehensive coverage.
- Collision coverage compensates you for vehicle repair regardless of who is responsible for the accident.
- Comprehensive coverage includes non-collision events such as vandalism, hitting an animal, theft, and natural disasters.
- Full liability insurance also includes medical payments for injuries.
- It will provide you with extensive protection for your vehicle and injuries.
Liability car insurance is less expensive than full coverage as it provides less coverage. But for valuable vehicles, the full coverage insurance policy is best.Top of Form
My Car is Totaled and I Only Have Liability Insurance: What to Do?
When it comes to totaled cars, and you only have liability insurance, it may be a stressful experience. But if you know the important considerations, a total loss will not be traumatizing as you may know what to expect after this.
Act swiftly and responsibly after a bad accident is important to overcome the consequences. It becomes more important if you only have liability insurance and your car is totaled. Here are some essential steps you may need to take after a bad accident.
- Make sure that you and other passengers are safe in the vehicle.
- After this, call the police as soon as possible.
- Collect all the information from the driver, including address, phone number, name, license plates, vehicle identification number, and driver’s license number.
- Gather the information of passengers and witnesses, including their names, addresses, and phone numbers.
- Take photos of where this accident is held and record eyewitness statements.
- After this, contact your insurance company and provide them with all the details about the accident.
- Keep the medical report and police record as evidence to help you with your insurance claim.
Carefully learn about the claim process to know what happens next. Follow your insurance agent’s instructions, and cooperate with them for paperwork.
How Much Cheapest Liability-Only Car Insurance Cost?
Liability-Only car insurance is a basic policy you can buy for your vehicle as it includes your state’s minimum insurance requirements. This insurance only covers the driver’s injuries and property damage if you are responsible for the accident.
It is important to know that if you want to buy liability-only car insurance, it will not cover the repair of the vehicle and property damage or injuries they sustain. And the average rate of this insurance or coverage is about $697 yearly, depending on the following factors.
- The company from where you buy the insurance policy.
- Your age and gender.
- Your credit card.
- Location where you live.
- Your previous driving record.
What is automobile liability coverage, helps you to know how it will help you in crises. The insurance policy provides financial security if you are at fault while driving your vehicle and damage property or injure someone.
You can choose between liability care and full coverage insurance. But full coverage insurance is a good option. It will cover all your repairs and damages. However, you can buy liability car insurance due to a tight budget, and it will also compensate for the expenses you may give to the third party.
Final Words
Automobile insurance provides financial protection if you injure someone or damage the property due to an accident while driving. The insurance policy helps you reduce the expenses you may face due to the accident damage to the third-party properties.
Auto physical damage coverage is a type of insurance that offers financial protection for your vehicle in case of vandalism, theft, collision, and fire. Most lenders use this physical damage coverage for loans and leases.
An automobile is a wheeled motor vehicle designed to transport passengers or cargo. An internal combustion engine, electric motor, or a combination of both power the vehicles, and it comes in different shapes and plays an important role in mobility.
Full coverage insurance is a combination of different coverages. It provides financial security for theft, collision insurance, injury protection, and comprehensive insurance. It is expensive but covers all your losses and damages from the accident.