What is Liability Car Insurance?

Liability car insurance is a type of insurance that covers the damages or injuries you cause to other people and their properties while driving. It is a mandatory type of car insurance required for every car owner and driver in most states in the United States.

What Does Liability Car Insurance Cover?

Liability car insurance covers the costs of damages and injuries you cause in an accident. It pays for the other party’s medical bills, car repairs, rental car expenses, and other property damages. Moreover, it also covers your legal fees and court costs if you get sued as a result of the accident.

However, liability car insurance does not cover any damages or injuries you or your passengers sustain in an accident. It also does not cover theft, vandalism, fire, or any other non-collision related damages to your car.

Types of Liability Car Insurance

There are two types of liability car insurance:

Bodily Injury Liability

Bodily injury liability covers the medical expenses, lost wages, and other related expenses of the other party if you injure them in an accident. It also covers your legal fees and court costs if you get sued as a result of the accident.

The minimum limit for bodily injury liability varies from state to state, but it usually ranges from $15,000 to $50,000 per person, and $30,000 to $100,000 per accident.

Property Damage Liability

Property damage liability covers the costs of repairing or replacing the other party’s property if you damage it in an accident. It can be a car, fence, building, or any other property.

The minimum limit for property damage liability also varies from state to state, but it usually ranges from $5,000 to $25,000.

Why Do You Need Liability Car Insurance?

Liability car insurance is mandatory in most states because it protects you and other drivers on the road from the financial consequences of an accident. Without liability insurance, you would have to pay for the damages and injuries you cause out of your pocket, which can be very expensive and overwhelming. Moreover, if you get sued, liability insurance will cover your legal fees and court costs, which can also be very high.

FAQ

Question
Answer
Is liability car insurance mandatory?
Yes, it is mandatory in most states in the United States.
What does liability car insurance cover?
It covers the damages and injuries you cause to other people and their properties while driving.
What is bodily injury liability?
It covers the medical expenses, lost wages, and other related expenses of the other party if you injure them in an accident.
What is property damage liability?
It covers the costs of repairing or replacing the other party’s property if you damage it in an accident.
Why do you need liability car insurance?
To protect you and other drivers on the road from the financial consequences of an accident.

Conclusion

Liability car insurance is a type of insurance that covers the damages and injuries you cause to other people and their properties while driving. It is mandatory in most states in the United States and is required by law. It protects you and other drivers on the road from the financial consequences of an accident and can save you from paying for the damages and injuries out of your pocket. Make sure you have enough liability car insurance to cover your assets in case of an accident.