What is Auto Liability Coverage?

Auto liability coverage is car insurance which covers two areas: bodily injury liability and property damage liability. Owning this coverage is a requirement if you plan on operating a motor vehicle in the United States. Basically, auto liability coverage provides a fixed amount of money that will become available to you for the purposes of paying for bodily injury or property damage which you are responsible for. It does not cover damage to your car, damage caused to you or your possessions by an uninsured driver, or medical expenses incurred as a result of an automotive accident.

Specifically, the following is what auto liability coverage does cover. The first area, bodily injury coverage, pays a fixed amount per person per incident (other than yourself) who is injured as a result of your actions. Since this coverage pays a fixed amount, you will be expected to personally cover any additional costs. Bodily injury coverage can also help cover you if an injured party sues you over the incident. In short, bodily injury coverage provides a fixed amount to be paid towards medical or legal bills for other people.

The second area, property damage coverage, pays a fixed amount towards replacing or repairing other people's possessions which are damaged by your vehicle with you at fault. If you run into another car, their car will be covered up to the fixed amount by your property damage coverage. This applies to non-automotive objects as well; for example, if you were to damage a fence, the fence would be covered by your property damage coverage.

Owning auto liability coverage means that you'll be covered up to a fixed amount to compensate for damage caused by you when driving, whether it be bodily injury or property damage.