What Does Liability Insurance Cover?
Liability insurance within the realm of auto insurance plays a pivotal role in safeguarding drivers against various financial risks. It primarily covers damages you may cause to other people or their property while operating your vehicle.
1. Bodily Injury Liability
This aspect of liability insurance covers medical expenses, lost wages, and other costs associated with injuries sustained by others in an accident for which you are at fault. This can include:
- Medical bills for the injured party.
- Rehabilitation costs.
- Legal fees if the injured party sues you.
2. Property Damage Liability
Property damage liability insurance covers the costs for damages you cause to someone else's property in an accident. This typically includes:
- Repair or replacement costs for vehicles.
- Damage to structures like fences or buildings.
- Costs for loss of use of the damaged property.
3. Legal Protection
If you are sued due to an accident, liability insurance generally covers legal costs, including attorney fees, court costs, and settlements, up to the policy limits.
Understanding the coverage of liability insurance is essential for any driver, as it ensures financial protection against unforeseen events on the road. Always review your policy limits and ensure that they meet your needs.