What Costs Does Liability Auto Insurance Cover In An Auto Accident?
In most of the United States it is required by law that all motor vehicle owners carry liability auto insurance coverage on their automobiles at all times. Liability auto insurance does not offer the same amount of coverage that full coverage insurance does, but it is necessary to have it in the event an accident does occur. These are some of the different things that liability auto insurance covers.
Bodily Injury Liability
Liability auto insurance covers the cost of bodily injuries suffered by the other party if the policy owner is in an accident that is ruled to be his fault. This includes the cost of medical expenses such as doctor or hospital bills, medications and physical therapy. If the other party files a suit, he may also be awarded the cost of any legal fees or lost wages caused by the accident as well. Depending on the auto insurance company and the policy the at fault party has purchased, this may be covered by liability insurance or the at fault party may have to pay these costs out of pocket.
Property Damage Liability
Liability auto insurance also pays for the cost of damage to the property of the party who is not at fault. This includes the vehicle driven by the no fault party, items inside the vehicle that may be damaged or lost or other property such as fences, driveways or structures if the accident occurs on the property owned by the no fault party. If the accident occurs on a public roadway, liability auto insurance will also pay for any damage caused to public property such as telephone poles or guardrails. If any damaged property can be repaired, liability insurance will pay for repairs. However, if it cannot be repaired, property damage liability also pays the cost to replace the property.
Liability auto insurance is less expensive than the cost of full coverage insurance. However, the auto owner often has the option of a few different policies of liability insurance to choose from. Usually the more liability insurance coverage the auto owner carries, the more the premium will cost. Some liability auto insurance also has a deductible the policy owner must pay first before the insurance pays anything. If the expenses incurred by an auto accident are more than the amount of coverage the at fault party carries, he will most likely be required to pay the remaining amount out of pocket.
To learn more, or if you have other questions you'd like to learn about, try visiting websites like Illinois Insurance Center Inc. and you may be able to learn more.