What is liability
If you are at fault
in a car accident, liability insurance pays for the damages that you
cause to someone else. It does not pay for your own damages. There are
two kinds of liability insurance: bodily injury and property damage.
Bodily injury expenses include medical bills, rehabilitation expenses,
and lost wages. Property damage expenses include the repair or
replacement of any items belonging to another person that you damage or
Every state except
Mississippi, New Hampshire, Tennessee and Wisconsin requires some level
of liability coverage. To find out what your state requires, you can
check with your state department of insurance, or you can refer to http://www.insure.com/auto/.
There you can find information about minimum coverage requirements,
along with links to websites maintained by each state's department of
Who is usually
covered by automobile liability insurance?
usually covers the following people:
insured. This is the person or people named in the
policy, no matter what car they are driving.
Even if the spouse of the named insured is not named on a policy,
liability insurance almost always covers him or her, unless the couple
does not live together.
relative. This refers to anyone living in the household
with the named insured who is related to the insured by blood, marriage
or adoption, usually including a legal ward or foster child.
driving the insured vehicle with permission. Someone who
steals the car is not covered.
Which vehicles are
normally covered under an auto insurance liability policy?
vehicles. An accident in a non-named vehicle is covered
only if a named insured (see above) was driving.
vehicles. This includes any vehicle with which the named
insured replaces the original named vehicle, and any additional vehicle
the named insured owns during the policy period (you may be required to
notify the company of the new or different vehicle within 30 days after
you acquire it).
vehicles. A temporary vehicle is any vehicle, including
a rental vehicle, that substitutes for an insured vehicle that is out
of use because it needs repair or service, or has been destroyed.
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