Liability coverage is an essential component of auto insurance policies, but there are key details to understand. Here’s what is true:
- Covers Damages to Others: Liability coverage pays for damages or injuries you cause to other people or their property in an accident. For example, if you are at fault in a collision, it may cover the cost of the other driver’s car repairs and medical bills.
- Does Not Cover Your Own Damages: It does not pay for repairs to your car or your medical expenses. Those are typically covered by collision or medical payment coverage.
- Required by Law: Most states mandate drivers to have liability insurance to ensure financial responsibility.
Understanding these basics is crucial for safe and legal driving.