Auto Liability Insurance Covers

For example when it comes to liability insurance if you cause an accident while driving the rental car your liability insurance would pay up to your policy limits for the damages.

Auto liability insurance covers. Auto liability insurance covers damage to vehicles and injuries of others that result from an accident you caused are legally liable for is the fancy insurance term. In many states if a driver is found to be at fault in the accident their. Bodily injury liability personal injury protection property damage liability collision comprehensive and uninsured underinsured motorist. How liability car insurance works.

The auto liability coverage definition may sound simple enough but here s a real life example. If you cause a car accident in other words if you are liable for the accident liability coverage helps pay for the other person s expenses. Auto liability insurance coverage helps cover the costs of the other driver s property and bodily injuries if you re found at fault in an accident. Liability just means responsibility so liability insurance protects you.

Liability insurance also called third party insurance is a part of the general insurance system of risk financing to protect the purchaser the insured from the risks of liabilities imposed by lawsuits and similar claims and protects the insured if the purchaser is sued for claims that come within the coverage of the insurance policy. Your insurer will pay for the property damage and injuries up to the covered limit. You re at a four way stop a few blocks from your house. In general the coverage you have from your primary auto insurance will cover a rental vehicle.

Note that each type of coverage is priced separately so there is variability in. What does auto liability insurance cover. Auto liability insurance is a type of car insurance coverage that s required by law in most states. There are two kinds of liability coverage.

While different states mandate different types of insurance and there are several additional options such as gap insurance available most basic auto policies consist of. Liability car insurance or liability coverage as it s also known helps pay for the costs of the other driver s property and medical injuries if you are at fault in an accident. Liability car insurance is the coverage that pays to repair the damage you cause to other people and their things. Rental car insurance could overlap with your own auto insurance.