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What is the purpose of automobile liability insurance?

automobile liability insurance

Automobile accidents can be costly, especially if you were the one who caused the accident. Suppose you cause an auto accident and are at fault. In that case, auto liability insurance can safeguard you financially by covering the costs of damages or injuries you cause to others up to your policy level. This insurance is mandated by law in most states. While every policy is different, let’s look at the many forms of liability insurance and what they normally cover, and how much liability insurance costs. Although liability auto insurance compensates the other party, it also protects the car owner and driver and their families from financial disaster if they were forced to pay the judgment and any legal fees necessary to defend themselves. So here are some lists about what is the purpose of automobile liability insurance.

Insurance for bodily injury liability

What happens if you are at fault in a car accident and someone else gets hurt? There are tort insurance laws in many states. If you cause an accident and are at fault, you or your insurance company is responsible for covering the costs of the other person’s injuries. It may also cover additional damages claims, such as lost wages or pain and suffering. The amount of liability insurance coverage supplied on many auto insurance quotes is represented by three numbers. The initial two digits point out the amount of physical injury coverage accessible. The third number indicates the property damage coverage included in the policy.

Liability coverage for property damage

Property damage liability insurance can help you pay the price if you cause an accident that destroys someone else’s property. If you damage another car or go with car disposals services or other property, such as fences and trees, it may pay some or all costs depending on your coverage limit.

Protection against personal injury

Things function a little differently in states with no-fault insurance legislation. After an accident in a state with no-fault insurance regulations, each driver’s insurer pays for medical bills up to a predetermined level. This differs from a fault state, where the at-fault driver’s insurance company pays for the driver and passenger’s medical expenditures up to a certain level. Personal injury protection coverage, or PIP, is required in certain states. Regardless of who caused the collision, this policy will reimburse you or any passenger in your automobile a minimum sum per person for injuries.

Bottom Line:

Choosing a greater coverage limit usually means paying more upfront. However, if you cause an accident that leaves you liable for considerable damage or injuries. A higher liability limit may save you money. Also, keep in mind that costs will vary based on which insurance company you choose.

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