The foundation of your auto insurance policy is the auto liability. Liability insurance is an important coverage and is typically a mandated coverage by state law or regulation. It’s designed to protect you, your family, or those you list as insured on you policy from financially distress when you’re liable for the result of a car accident:
Bodily injury liability: This coverage is for medical bills, lost wages, and other expenses caused if you hit someone and they’re injured. This coverage will provide protection for all people you harm in an accident, as well as legal fees if you have to go to court as a result of the incident.
Property damage liability: This coverage is to pay for damages to another person’s vehicle or other property.
Example*: You run a stop sign and hit a vehicle in the intersection, along with damage to the other person’s car you injur the driver. Liability will cover the driver’s injuries and the cost to repair or replace the other party’s car.