Car Liability Insurance: Part I – What is it?

Automobile Liability Insurance coverage provides a preset dollar amount of coverage for damages that the policyholder is legally required to pay resulting from an accident or some other form of negligence. This includes damage to the policyholder’s vehicle and any other vehicle, person or structure involved in the incident.

There are 2 main types of liability coverage available: either a Combined Single Limit policy or a Split Limit Policy. The Combined Single Limit policy combines property damage liability coverage and bodily injury coverage under one limit. Split Limit liability coverage policy splits the coverages into property damage coverage and bodily injury coverage. Bodily injury liability coverage is also normally split again into a maximum payment per injured person and a maximum payment per damaged property.

What does it cover?>>