Instead, it covers the liability of other drivers who might cause an accident but don’t have any or enough auto insurance to pay for the damages. Alternate names: bodily injury liability insurance, property damage liability insurance, auto liability insurance How Liability Auto Insurance Works ...
Liability auto insurance policiesare written as three numbers, with each protection type represented. For example, a 25/35/15 policy would mean that it covered $25,000 in bodily injury coverage (per person), $35,000 in bodily injury coverage (per incident) and $15,000 in property-damage c...
Auto liability insurance doesn't need to be confusing! We've broken down the different parts to help you understand why it's so important. What is auto liability insurance? If you're at fault for an accident, the liability part of your car insurance is what helps pay for the damages to...
48 states require a minimum amount of auto liability insurance. Check with your DMV for specific requirements needed to operate a vehicle in your state. But you might want to consider higher limits for better protection, especially if you have assets that could be targeted in a lawsuit. The ...
insurance also pays for any legal bills you'll encounter as a consequence of causing the accident. Bodily injury coverage is part of responsibility auto insurance. This can help shield you in the case of wounds sustained by the passengers in the other auto. If you're at fault, you'll be...
Although everyone is required to have liability car insurance, there is no “one size fits all” auto insurance policy for all drivers. Your situation is unique, and the maximum benefit that you might need may be different from your neighbor, your family, or someone driving the same exact ve...
Liability insurers use a variety of tools to address adverse selection and moral hazard in insurance relationships. These tools can act on insureds in a manner that can be understood as regulation. We identify seven categories of such regulatory activities: risk-based pricing, underwriting, contract...
Liability insurance is the most basic form of auto coverage. If you cause an accident, it pays for the other driver's expenses, whether that's medical care or repairs to their car or. It doesn't pay for repairs to your own car, however — that requires comprehensive or collision coverage...
Personal liability is an important consideration for individuals when it comes to protecting their assets and financial health. Liability insurance policies, ranging from auto to homeowner's insurance, are designed to help cover the costs of damages or injuries that may result from the ...
Personal liability insurance policies are purchased primarily byhigh-net-worth individuals(HNWIs) or those with sizeable assets, but this type of coverage is recommended to anyone with anet worththat exceeds the combined coverage limits of other personal insurance policies, such as home and auto cove...