Liability insurance definition and meaning

Life Insurance - Liability insurance definition and meaning . Liability Insurance:  Liability insurance is the type of car insurance required by most states. Liability insurance provides coverage for accidents you are in causing damage to either (a) other vehicles or (b) your vehicle where the fault is not with another car. Although many states have no fault car insurance laws its important to understand that liability insurance is not a blanket protection from litigation.

Liability insurance definition and meaning

How it does help is reduce the need for a lawsuit. Minimum liability insurance limits are generally based on the average cost of a vehicle so in the event of an accident no further claim from vehicle damage is usually needed since the liability coverage can usually cover the cost of any damage. Where people get in trouble and often become exposed to personal liability is when the damage exceeds the policy limits (often the case with luxury cars or due to the high cost of medical expenses). Always consider more than state minimum car insurance requirements.

Bodily Injury Liability: Bodily injury liability coverage is also usually a mandatory minimum car insurance requirement in most states. This component provides coverage for the medical expenses of the driver and passengers of the other vehicle if you are involved in an auto accident (to preset amounts as outlined and limited within your insurance policy)

Property Damage: Required by almost all states, property damage insurance is another version of liability insurance aimed at providing coverage for damage to physical property in a car accident owned by others.

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Collision Insurance: Protection for “road-related” damages. For example if you strike another car while operating the vehicle on the road or vice versa. The typical definition of a car accident applies the most to collision coverage.

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