What is the definition of auto insurance liability coverage? This is part of a standard auto insurance policy and it pays for injuries and damages incurred by the occupants of the other vehicle when an at-fault accident occurs. A driver who does not have this type of coverage in place (or who doesn’t have enough of it) will be required to pay for the damages he or she causes in an accident personally.
Liability coverage includes bodily injury and property damage protection. The bodily injury portion of the policy is used to pay for medical bills and rehabilitation expenses stemming from the accident. It also pays out a funeral benefit if the accident caused one or more deaths. In some states, people who have been injured in an auto accident have the right to sue for pain and suffering and the bodily injury liability coverage is used for this purpose.
Property damage liability insurance pays for repairs to the other driver’s vehicle. It also pays for damage to public property, including fences, guard rails, sign posts and light stands. The other driver’s personal property is not protected under this part of the policy; he or she will have to make a claim under a homeowners’ or renters’ policy to receive compensation for these items.
Auto insurance liability insurance customers can choose to buy a policy with a higher limit than the one required under state law if they wish. This will provide a higher level of protection in case of an at-fault accident.