What is Automobile Liability Insurance?
Automobile liability insurance is a type of car insurance that provides financial protection for the policyholder in the event that they are found to be at fault for an accident. The two main types of automobile liability insurance are bodily injury liability and property damage liability.
Bodily injury liability insurance covers the cost of medical expenses, lost wages, and other damages incurred by the people injured in an accident that was the policyholder's fault.
Property damage liability insurance, on the other hand, covers the cost of repairing or replacing any property that was damaged in an accident caused by the policyholder. This includes other vehicles, buildings, and other structures that were involved in the accident.
Liability insurance is mandatory in most states and is typically required as a condition of registering a vehicle. It is the minimum level of car insurance you are required to have and it covers the other party's damages and injuries in case of an accident that you caused.
It's important to note that liability insurance does not cover the policyholder's own damages or injuries in an accident. For that, you would need additional types of coverage such as collision and comprehensive coverage.