Finance, Loans & Insurance
What Does Liability Car Insurance Cover?
You will be held responsible for the damages you caused to others in the case of an accident, for both bodily damage and damage to property. And they are expensive! So expensive that you may have to sell off some your assets if the damage caused by the accident is too high.
A liability car insurance helps the insured in these kind of situations. If you have liability car insurance included in your general car insurance, you will be protected against the claims of others by your carrier. That means your carrier will pay for other’s accidental expenses for the damages you caused.
A liability car insurance provides coverage to two aspects in the case of an accident – Bodily Injury Coverage and Property Damage Coverage
Let’s dive deep into each one of them –
Bodily Injury Liability Insurance Coverage
This type of insurance can protect you financially when you are at fault in an accident that results in any kind of physical injury to other people. From taking care of minor bruises to even funeral costs, everything is to be paid by the driver at fault (you) in the case of an accident but if you are insured with an bodily injury coverage, all that burden is shifted to your carrier.
It’s important to note that while this type of coverage covers expenses incurred by other people to fix bodily damage caused in an accident, it doesn’t cover paying for your own physical injuries.
But that burden is also limited to an extent set by you. If the bodily injury damages exceed beyond that limit, you will be responsible for paying them off, in any way possible. So, it’s better to set these limits at the highest affordable amount as possible. Generally, there are 2 types of bodily injury limits –
1. Limit per person – The maximum amount your carrier will pay for the bodily injury to a single person in a car accident.
2. Limit per accident – The total maximum amount your carrier will pay for the bodily injury caused to multiple persons in a car accident.
Property Damage Liability Insurance Coverage
Like bodily injury insurance, property damage liability coverage is also limited by the amount set by you and doesn’t include providing compensation for damage caused to your property.
Property damage insurance usually covers the cost of damages caused to someone else’s property after an accident caused by you. Generally, property damage insurance covers full repair or replacement of damages caused to another’s vehicle or other property such as house, lamp post, fences etc.
As mentioned before, the amount that your insurance carrier will compensate for damages caused to another’s property is limited by the amount of your choice. Like bodily injury insurance, a property damage insurance is not split in ‘per person’ and ‘per accident’ basis but covers a limited amount per accident.
Both of these coverages will be mentioned in your car insurance policy as (say)
$10,000/$30,000/$20,000 – Where the first two numbers represent the bodily injury coverage limit, per individual and per accident respectively, and the last number indicate the property damage coverage limit.
Your search for a suitable liability car insurance policy ends here! Contact us as we compare and provide you with the most options to choose your next best car liability insurance in Texas.