Your Personal Guide to Auto Insurance Liability Coverage


Certain types of auto insurance liability coverage are mandatory in some states of USA because these covers protect you from financial and legal problems. While there are many types of coverage offered by insurance companies, a few of these covers are very important. This article will elaborate on 5 such auto insurance liability coverage that can help you out in your time of need.

Bodily Injury Liability Coverage

Bodily injury liability protects you when a third party gets hurt in your vehicle. This scheme covers medical payments and lost wages for other people who get injured during an accident in your car. This cover also ensures that you are legally protected during such an accident and all your legal expenses are paid for. This liability protects people from getting sued by third parties since this cover pays for their medical expenses while they are injured.

This auto insurance liability coverage does not pay for your medical expenses after an accident. This cover also does not pay for medical expenses of people who are on your insurance application form. While choosing this cover it is always recommended to choose a higher limit since a higher limit will protect you from problems in case there is more than 1 person in your vehicle. An option of either $100,000 or $500,000 is given to applicants and depending on the capacity of your vehicle you should choose a suitable limit.

Property Damage Liability Coverage

Property damage liability coverage protects the third party’s property from damage. This cover pays for any damage to the third party’s car, house, fence and other things that are damaged during the accident. This helpful coverage also pays for legal expenses in case the other person decides to sue you. This coverage does not protect your car or your personal things from damage. Depending on the sate you live in, this auto coverage may be mandatory.

Collision Auto Insurance Liability Coverage

Collision liability coverage pays for the third party’s car and it also pays for your car. This coverage is suitable for people who would like to protect themselves from financial trouble. After an accident if your car is damaged more than 70% and does not work anymore then the insurance company will tow away your vehicle and they will give you the value of your car. Many people increase their deductibility while opting for this scheme since this lowers the premium significantly.

Comprehensive Liability Coverage

Comprehensive auto insurance liability coverage pays for damages that happen due to fires, thefts, floods, vandalism and by animals. This liability coverage does not protect your car if you get into an accident and this coverage should be used as an additional scheme. Your windshield is also covered by this beneficial coverage and depending on your state the glass on your car may also be covered by this liability cover.

Uninsured Motor Liability Coverage

Uninsured or underinsured liability coverage pays for medical bills if an uninsured or underinsured person hits you. This coverage also protects you when you are a victim of a hit and run accident. Depending on the state you are in this liability coverage may or may not be mandatory but it definitely is useful. In certain states this particular cover also pays for suffering, lost wages and property damage that occurred during the accident.