How does Auto Liability Insurance Work?

Auto liability insurance is one of the most basic forms of auto coverage that you can get. It is required by law in most states and there is really no need to drive without it. If you drive on the highways, it is best for everyone else if you have it. Liability insurance protects the other drivers on the road from negligence.

Bodily Injury Liability

One of the key areas that your auto liability policy covers is within the area of bodily injury. This means that it will cover any injuries to other drivers that were caused as a result of you crashing into them. This is a very important coverage to have as it will pay for the medical bills and any lost wages of those injured. In most states, a lawsuit could emerge from an auto accident stemming from negligence. If you have liability insurance, it will take care of that as well. It will cover any legal fees and judgments that may filed against you. You could be in an accident and be sued any day of your life. It is essential to protect yourself.

Medical bills that arise due to an auto accident are usually quite high. A trip to the emergency room can run thousands of dollars. If the injured party spends any amount of time in the hospital, the bill will go up another several thousand dollars. On top of these bills, the injured party will probably get something for their pain and suffering as well. If they are off work for a few weeks, this could add up to be a lot in lost wages as well. Bodily injury liability will take care of all of this for you.

Property Damage Liability

Another area that is an essential part of liability coverage is the property damage section. Liability as a result of damaging someone else's property with your car can be very expensive. Imagine if you were in a wreck with someone and knocked over a sign which fell through someone's business. Without insurance, you would be responsible to pay for the person's car that you hit first of all. Then you would have to pay for the damage to the sign and then finally repair the building that was damaged. This will add up to an unbelievably high bill for you.

With liability insurance, it will all be covered. You will pay your deductible and that is all. The insurance company will take care of all the bills to personal property.


When you purchase your liability policy, it will be up to you to decide the limits of your policy. While the insurance company will pay, there is a limit to how much. You need to decide on a limit for bodily injury claims as well as a limit for property claims. The higher the limit, the more expensive your premiums will be.