Nov 05 2010

What is liability coverage in auto insurance?

Category: Auto Insurance

Answer:

Liability coverage is a basic part of any auto insurance policy. If an individual is deemed responsible for an accident, it will be used to offset the costs that may be involved with any injuries or damages that may have occurred. A decent car insurance policy will have liability coverage that will pay to have your car fixed, for hospital bills, and even lawsuits that may ensue due to your actions.

There are two kinds of liability insurance: bodily injury and property damage coverage. Bodily injury coverage pays for any hospital bills and rehabilitation that may be needed if an individual is at fault. Property damage, on the other hand will only cover damages to property.

Liability coverage is required in most states but if it isn’t it is still wise to cover yourself with this type of insurance.


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