Liability Car Insurance- What Does It Cover?

Do you have Liability Insurance for all the vehicles you own? 

Having auto insurance is mandatory in almost all the states in the US (except three), but there is no rule mandating you to have Liability Insurance included in the policy. Although, Liability Insurance is one of the first things a car owner looks for–depending on in which state you reside–some people might not see it as a priority. This post is to make you aware of the importance of Liability Car Insurance. I have also shared the expenses that a Liability Car Insurance covers.

What Is Liability Car Insurance?

Liability Car Insurance is one of the coverages a standard Auto Insurance has to offer. Some insurance companies also offer specific Liability Insurance for car owners. This policy focuses solely on two aspects of insurance 1) Bodily injury liability coverage and 2) Property damage liability coverage.

Bear in mind that this insurance policy only covers losses incurred by other people (and their property) involved in the accident. This policy does not cover the medical expenses or physical damages incurred by the policy holder’s vehicle. This is a key difference between this policy and a standard auto insurance policy. Let’s talk about the two types of coverage a Liability Car Insurance by a major insurance provider offers.

What Does a Liability Car Insurance Cover?

1) Bodily Injury Liability Coverage

The insurance company will take care of all the medical expenses of people involved in a road accident caused by you. Except for the driver and the passengers sitting in the car owned by the policyholder, the insurance will take care of looses incurred by everyone.

2) Property Damage Liability Coverage

Similar to the Bodily injury liability coverage, Property Damage Liability Coverage is there to pay for the damages sustained by a real estate property or the vehicle of other drivers. You can also get sued by a bystander if the accident (caused by you) incurs damage to the items they are carrying (like luggage, or physical goods).

Is It Worth Getting a Liability Car Insurance?

Barring three states, it is mandatory by law for a vehicle owner to have an auto insurance policy. Does every vehicle owner has insurance? The simple answer is no. There are plenty of vehicle owners in the US who drive without having any kind of insurance. Maybe they are young, jobless, poor, or plain irresponsible, but the point of sharing this fact is, it is possible to save money by driving without having insurance.  

Having said that, a Liability Car Insurance is a minimum a car owner should have in his/her glove box. Even if you are willing to incur losses to your vehicle and injuries to yourself, you cannot take a risk by causing damage to someone else. If you do not produce Liability Car Insurance papers from your glove box, they will most certainly sue you. Hence, you shouldn’t mind paying a monthly premium to your insurance company. It is worth purchasing a Liability Car Insurance.