What is Liability Insurance?

Posted: Monday, January 15th, 2018

Liability insurance pays for another driver’s repairs and medical expenses if you’re at fault in an accident. Keep this information in mind if you’re shopping for insurance:

  • Liability insurance only covers the other driver’s damages, not yours.
  • Different types and amounts of insurance are required by law, so be sure to check your local regulations.
  • Coverage limits show how much your insurance company will pay. Anything over that and you’re responsible.

Find out more about the ins-and-outs of liability insurance before you begin shopping.

Learn About Different Types of Liability Insurance Coverage

There are two types of liability insurance, and they’re both required in most states:

  • Property Damage Coverage – This pays for damage to a car in the event of an accident.
  • Bodily Injury Coverage – If the other driver or other passengers are hurt, bodily injury coverage steps in to pay the claim.

It’s also important to note that liability insurance and collision coverage are different things. Collision coverage pays for damages to your own vehicle, and if you don’t have it, you’ll have to pay for them yourself. In addition, medical payments coverage will pay for your medical costs if you’re injured in an accident.

Should I Buy Auto Liability Insurance?

A certain amount of minimum coverage is required in all states, so it’s a necessary part of buying a car. When you’re shopping, keep these coverage limits in mind:

  • Property Damage Limit: The maximum amount your insurance company will pay for damages.
  • Bodily Injury Damage Limit (Per Person): The most your insurance company will pay an individual to cover their injuries.
  • Bodily Injury Damage Limit (Per Accident): The total amount your insurance company will pay for medical expenses in a single accident.

Be sure to check for these limits, as insurance with low coverage limits could leave you owing money in an accident. Along with securing financing, insurance shopping is just one of the steps you should take when buying a car.

Visit Green Light Auto Credit for Advice

The experts at Green Light Auto Credit are happy to answer any questions you have about the shopping process, from insurance to obtaining a low-interest auto loan. Find out more information before you visit us:

To get the ball rolling on a hassle-free auto loan, call us at 822-200-5551.