What Is Liability Car Insurance?

Description: Buying a new car means you must consider purchasing insurance. It helps you if any accident happens and you are at fault. This kind of insurance is called liability car insurance.

Keyword: liability car insurance

LSI Keyword: liability car insurance covers, what does liability car insurance cover, liability car insurance consists of.

Car insurance is one of the essential things you must consider to have it. It is part of a car insurance policy to provide financial protection, especially in an accident or damages. There are some kinds of car insurance, one of them is liability car insurance.

The Definition of Liability Car Insurance

Having insurance is an effort to protect the driver or vehicle in some situations, primarily, which injure or damage other parties and properties. This kind of liability car insurance covers injuries or damages of third parties, including their property.

It means, the insurance is not for the driver or driver’s property. That might be covered separately by other parts of the insurance policy. You will not get full coverage in most situations as what you will get in full coverage car insurance.

The point is that liability car insurance only helps cover the cost of the damage resulting from the accident. So, it protects the driver who is found to be at fault in the accident. The insurance will pay the medical costs and property of other parties involved up to the limits which is decided by the insurance policy.

What Does It Cover?

One of the most important things you should know is what liability car insurance covers. Each kind of insurance has different responsibility for what they must cover. This liability car insurance consists of below types of coverage, those are:

· Body Injure

Liability car insurance has the responsibility to cover the results of accidents due to driver’s fault, including medical expenses. While, if there is no proof that it is the driver’s fault, then the insurance companies are not liable for other emergencies, medical expenses, funeral costs, or loss of income.

If the accident results in a lawsuit, the insurance will also help to cover the policyholder’s legal fees. The insurance will cover the cost for a lawyer, law process, and anything related to the lawsuit

· Damage of Property

The insurance will cover any property damage, including repairing or replacing the component of the vehicle. The driver who is at fault must take responsibility to other parties. Then, car insurance helps to protect it.

The coverage includes any damage to the hedge, wall, pole, and many others which are damaged due to the accident.

The Limit of Liability Car Insurance

You must understand that this kind of insurance couldn’t cover all expenses and the company has limits which are set already. The limit means the maximum cost they can cover if any injury or damages. If any cost exceeds, it must be responsible for the driver who is at fault in that accident.

For example, if they get injured, the limit cost for each person is $60.000, and the limit per accident is $150.000. The medical expenses due to that accident are $55.000 for each person.

Even though the payment is less than the limit, the total medical cost is more than the limitation. So, the driver must pay for the additional $15.000.

Understanding what kind of coverage will be responsible for liability car insurance is essential. It will help you to prepare when it requires any additional cost.