Liability insurance is a type of insurance product that provides protection against claims that arise from injuries and damage to other people or property. It helps cover medical and legal expenses if you are held legally responsible for someone else's injuries or for damage to someone else's property. Most states require vehicle owners to have liability insurance in their auto insurance policies to cover injuries to other people and property in the event of accidents. Personal liability insurance does not cover liability for the damages and injuries you cause while driving a car.
However, the types and amounts of coverage vary from state to state; all states require property damage (PD) and bodily injury (BI) liability protection. Under a liability insurance policy, property damage covers damage caused to the other driver's property. Liability and property damage coverage protects other drivers, as well as pedestrians, from any harm you cause. If you don't have liability insurance, it's important to take out liability insurance as soon as possible to meet your state's minimum insurance requirements. It is also recommended that you thoroughly evaluate your limited coverage when taking out your liability policy. In many cases, it could result in you being denied coverage if you take responsibility because you think you're covered, but you're not.
A supplemental insurance policy is additional liability insurance coverage that is purchased and exceeds the dollar limits of the insured's current insurance for homeowners, cars, or boats. It's important to note that any cost that exceeds the limits of liability coverage in an accident where you are at fault is your responsibility. Liability insurance can cover lawsuits you may face as a result of an accident, including bodily injuries to others on your property, even if the event was caused by you. In summary, having liability insurance is essential for everyone. It helps protect you from financial losses due to accidents or other incidents where you may be held legally responsible. It also helps protect other drivers and pedestrians from any harm you may cause.
Make sure to thoroughly evaluate your limited coverage when taking out your liability policy so that you are adequately covered.