What does Liability Coverage Covers?


Forty-seven states require auto insurance policy for every licensed motorist living in any of those states. Whether a driver owns a car or not, they are still compelled to file for a car insurance policy. This is to make sure a motorist would be able to return to his way of living prior to whatever car accident he might be involved in.

The minimum insurance coverage most state requires its motorist is the liability coverage. The liability insurance policy covers for any damage or injury a policy holder inflicts to someone or someone else’s property. This means that when you happen to accidentally hit someone with your car the insurance coverage that would help you pay for that person’s medical expenses is the liability insurance policy. However, when the policy holder gets injured or damages his vehicle in the accident that is his fault, the liability coverage will no longer be held responsible for the policy holder’s medical expenses and his car’s repairs.

The liability insurance policy is broken down into two other types, the bodily injury liability (BI) and the property damage liability (PD).

The bodily injury liability is the type of liability coverage which covers for the other person’s injuries or death in an accident caused by the policy holder. In cases that the other party would file a law suit against the policy holder at fault, the BI would be sure to provide a sufficient defense for the policy holder. Bodily injury does not only cover for the other party’s medical expenses but it also covers for the other party’s income loss, pain and suffering. In events that you might injure yourself or any of your passengers during the accident, BI would not be covering for it.

The property damage liability, on the hand, is the type of liability coverage which covers for the property a policy holder might damage during a vehicular accident. Most of the time, the other party’s property would be his car. In other cases it would a house, a private building or a fence. This type of liability coverage also provides the policy holder at fault a defense in cases where the other party would file a law suit.

In purchasing any of the two types of liability coverage, you must not hold back. The liability insurance coverage could at least make sure you will not pay a very large amount in case you get involve in an accident. The limit of the liability coverage is stated in your insurance policy.