AUTO INSURANCE ARTICLE
What Is The Definition Of Liability Coverage For Auto Insurance?
By: mindifWhat is the Definition of Liability Coverage for Auto Insurance?
Simply put, liability coverage for auto insurance protects you in the case of an auto accident which is your fault. When you have liability coverage for your automobile and are involved in an accident which is your fault the damages done to the other parties are covered by your insurance. If the damages done are greater than your liability coverage you are responsible for the difference and could be sued for that difference. That is why it is important that you discuss sufficient amounts of liability insurance for you with your agent.
Liability Coverage Requirements for Auto Insurance
All states require that you carry a minimum amount of liability auto insurance; these minimums vary per state. It is important that you research your state’s requirements; not meeting such requirement and getting caught can lead to fines and even jail time in some states.
Liability Auto Insurance Lingo
When you go to purchase liability coverage for auto insurance it is essential to your success and understanding that you are able to comprehend the language used in your policy and by your agent. Your amount of liability coverage is expressed as a series of numbers, here is an example: 100/300/100. This means that you have $100,000 per person of bodily injury coverage, with a maximum of $300,000 bodily injury coverage per accident. The last 100 means you have $100,000 in coverage for property damages such as fences, buildings, signs etc. The damaged party’s vehicle is not included in the property damage limitation. The damages done to another’s vehicle is covered by the fact that you have liability insurance, no matter what the amount of the damages.
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