Liability Auto Insurance
A liability policy covers bodily injury and property damages that were sustained by a third party in which the policyholder has been found legally responsible for causing. Injuries or damages are only covered by the auto insurance carrier if they are the result of a traffic accident.To find out how much liability coverage costs, enter your zip code below to get quotes from multiple companies.
Liability coverage may also cover defense costs in the event that a lawsuit is filed following a loss covered under the terms of the policy. Defense costs are in addition to the limits stated on the policy; the cost of defending a claim or suit may not effect the policy's payout limit. Insurers are not obligated to defend or settle claims which are not covered which include, but are not limited to damages intentionally caused by the insured, damage to property rented, used by or in the care of the policyholder and losses taking place in a prearranged racing or speed contest. Policies are issued with a set limit of which the insurer is obligated to pay out following a claim. Once the policy's limit has been exhausted, the insured may be held accountable for any remaining compensation due to the other party.
Liability coverage is usually split into three coverage categories as follows:
{per person total medical limit} / {per accident total medical limit} / {per accident total property damage}
Numbers are usually abbreviated but should be read in thousands. For example, 100/300/50 should be $100,000/$300,000/$50,000.