Auto insurance is security protection of your own car and vehicle, as in case of an accident, damage or theft you got your insured amount according to the company’s policy. But what if, you cause an accident and damage someone else property or auto vehicle in your own car. Then you are responsible for that accident and now it’s your responsibility to pay the third party for the damage you caused. In this type of scenario, you can get benefits and peace from auto liability insurance.

What is auto liability insurance?

Auto liability insurance is an insurance policy in which insurance company pays the third person, to whom’s property or car you damaged by accident. In simple words, the company pays for damage, if you are liable to that damage or injury. 

Types of auto liability insurance coverage.

There are generally two types of auto liability insurance coverage. 

  1. Bodily injury liability coverage 
  2. Property damage liability coverage 

1. Bodily injury liability coverage 

It covers the emergency medical expenses caused by your fault to other drivers, or any president. In case of a lawsuit by the injured party you also have to pay lost wages and cover fees. All these expenses are bear by the company on your behalf if you have auto liability insurance. 

2. Property damage liability coverage 

It covers the damage of the property caused by your car or auto vehicle. It may cover other parties’ vehicle replacement and repair costs if you are found at fault in that accident. It covers the fence, structure, phone pole or any other type of property. 

In some states, auto liability insurance is a must according to law. The cost of auto liability insurance coverage is defined by the company’s policy and the premium that you pay. 

Do Auto liability insurance is necessary?

As it is already mentioned that in some states it is compulsory according to law. Minimum auto insurance coverage is also compulsory in all states, although its terms and policies are different in terms of types and amount coverage. Auto liability insurance gives you a security that at times you will not face out of pocket expenses. Everyone should go for auto liability insurance according to his states’ requirements and according to his needs.