What does auto liability insurance cover?
Liability insurance actually consists of two types of auto coverage:
- Bodily injury liability protection applies to the medical expenses of the other party if you are found at fault in the accident. In some circumstances, it may even cover lost wages and/or legal fees if the injured party files a lawsuit.
- Property damage liability protection applies to damages to property resulting from a covered accident in which you’re at fault. It may cover the other party’s vehicle repair or replacement costs, as well as other property that may have been damaged in the accident, such as fences, structures, phone poles and other types of property.
Minimum liability limits for each of these coverage types vary depending on which state you live in. Liability coverage cannot be used to pay for your vehicular damage or personal injury costs. For that, you will need comprehensive and/or collision coverage.
Do I need auto liability insurance?
Yes. A certain amount of liability insurance is required in all states – this is often referred to as “minimum coverage.” Although, the coverage types and amounts vary from state to state; all states require property damage liability (PD) and bodily injury (BI) protection. Some states also require personal injury protection insurance, uninsured or underinsured motorist protection and/or property protection. You can opt for a larger amount than the minimum required by your state, depending on your needs.
Think of liability insurance as the baseline for auto coverage. Collision coverage and comprehensive coverage – not to mention other optional coverages like medical payments coverage and personal injury protection – can’t be purchased until you have adequate liability insurance.
If you don’t have liability insurance, it’s important that you get it as soon as possible to meet your state’s minimum insurance requirement. Start your auto liability insurance quote online with Nationwide.