What is Liability Auto Insurance: Coverage and Cost

by | Feb 27, 2024 | Auto Insurance | 0 comments

Liability insurance coverage is the basis for the best car insurance policy. It is the most reliable kind of coverage for drivers. You may face financial loss if you do not have insurance for autos. In case of a car accident, your simple automobile insurance can not cover all expenses. But liability protection can overcome your tension.

In the United States, car insurance liability coverage is considered the most common automobile insurance coverage. Different types of liability insurance are available for varying levels of situations.

In this article, we will discuss auto insurance and what it covers.

What is Liability Auto Insurance?

Insurance liability is the type of automobile insurance that assists in adjusting the bills if you make a mistake or have an accident. Furthermore, it manages your accident finance damages and defends you in legal affairs and judgments per your policy package.

Keynote: All states require this car insurance from their drivers.

You may face punishment if you do not own any insurance for auto. You must then face all the expenses for damage to someone’s property.

It is mandatory to have a small portion of automobile insurance to seek help for financial losses and other damages.

Interestingly, If you face a car accident because of another driver’s mistake in some states, that driver’s insurance policy will benefit you. You will enjoy the perks of the insurance policy according to the provided facilities.

On the other hand, few states provide a facility for no-fault auto coverage. In this case, drivers can file the policy claim if both drivers have no fault.

What Does Liability Auto Insurance Cover

What Does Liability Auto Insurance Cover?

The following are the critical components of getting liability insurance:

  • Bodily Injury Liability

Bodily injury liability coverage relates to medical issues such as low expenses and injuries. This insurance covers the expenses needed to cure injuries of the insurer who faced an accident.

If the person dies due to an accident, the funeral expenses are also covered through this insurance. It also handles the bills of other passengers of the car. The BI insurance covers the amount of loss faced by the policy owner.

  • Property Damage Liability

Property damage liability protection relates to the expenses of any person for property damages. If you are at fault, this insurance covers accident-damaged car repair and replacement costs.

If you damage others’ property, including buildings and street signs, this coverage will protect you in this tricky situation.

Furthermore, property damage liability handles the legal matters you may face due to property damage.

What Does Liability Auto Insurance Not Cover?

Sometimes, liability protection does not cover all your damages. But there is a solution!

You can have the following insurance policies, which can help you.

  • Comprehensive Coverage

If your car is damaged due to any storm, fire, hail, or tree falling, the insurance policy will not help you. You will not be paid through the policy if your car gets stolen.

But when you purchase comprehensive coverage for your policy, it covers all damages caused by any third source.

It manages all the expenses you can not afford due to the car’s high value.

  • Collision Coverage

Collision coverage is additional coverage to your vehicle. If you face any damage to your car and can not afford its high costs, this insurance provides relief.

You have to pay more to add this coverage to your policy, that is why it covers higher expenses.

The good news is that it can cover all the losses whether you are at fault.

  • Underinsured and Uninsured Motorist Coverage

If you get hit by any other car, uninsured motorist coverage covers all your medical expenses.

It provides relief to you and other passengers as well.

Only a few states consider it optional coverage, but others require it.

  • Medical Payment Coverage

Medical payment coverage covers your medical expenses in case of a vehicle collision. Your hospital, doctor, and ambulance costs are paid through this insurance.

  • Personal Injury Protection (PIP)

Personal injury protection is the same as medical payment coverage that handles your medical expenditures in case of a car accident. However, there is an additional feature of personal injury protection because it covers expenses other than medical costs.

This coverage is also optional in some states.

How Much Liability Vehicle Insurance Do You Need

How Much Liability Vehicle Insurance Do You Need?

The need for coverage depends on your choice. But we will give some suggestions from experts.

Experts suggest that if you buy coverage of 15/30/5 and face an accident, your medical expenses will increase to $100,000. But your insurance gives you only $30,0000. In case of more than one injury, you must manage another $70,000. That looks uneasy!

But if you purchase a liability of 50/100/50 or 100/300/100 limits, your insurance will pay you a complete $100,000.

How Much Does Liability Vehicle Insurance Cost?

The liability coverage cost depends on various factors such as:

  • Age
  • Gender (vary state to state)
  • Marital Status (vary state to state)
  • Occupation (vary state to state)
  • Location
  • Driving History
  • Claims History
  • Vehicle Type
  • Coverage History

The average minimum liability coverage cost in the US is $627 per year or $52 per month. (Updated Feb 16, 2024)

Wrap Up

Liability insurance for autos is the best vehicle insurance that stables you economically and protects you during any calamity. However, it only helps you in some conditions discussed above.

What are you waiting for now? Get your liability vehicle insurance now from Patience Noah!

Patience Noah

Patience Noah migrated to the United states in 2003 after the Liberian Civil War. She attended the University of Massachusetts Dartmouth and got her B.A in Marketing. After graduating college in 2013, she started her career in the insurance industry cold calling.

Related Articles