What Is Auto Liability Insurance?

Auto liability insurance is a type of coverage that may help pay for bodily injury and property damage expenses resulting from an auto accident for which you are at fault.

It is designed to help protect you financially if you cause harm to others or their property while driving.

Components of Auto Liability Insurance:

There are two main types of auto liability insurance:

• Bodily injury liability—This coverage helps pay for medical expenses, lost wages and legal fees related to injuries or death of another driver, passenger, pedestrian or cyclist when you are at fault in an accident.

• Property damage liability—This coverage helps pay for repairs or replacement costs of another person’s vehicle or property that you damaged in an accident.

Auto Insurance Requirements in California

California law mandates that drivers carry minimum auto liability insurance coverage. The minimum requirements may not fully cover the damages in a severe accident, so agents may suggest purchasing more than the state’s minimum required amount.

Auto liability coverage pays only up to the policy’s limits. Damage exceeding the limit may become your responsibility.

If you lease or finance a car, your lienholder can require full coverage insurance to help provide them with financial protection if your car is damaged or destroyed in an accident or incident.

Your agent may also recommend additional coverage to help fix or replace your car after a covered accident, including the following:

• Comprehensive coverage—This policy may help cover your repair or replacement bill if your car is damaged in an incident such as a fire, natural disaster or hitting an animal in the road.

• Collision coverage—This policy may help cover the repair or replacement of your vehicle after an accident with another vehicle or object.

• Uninsured/underinsured motorist coverage—While not required, this coverage can protect you if you are in an accident with a driver who does not have insurance or does not have enough coverage to pay for your damages.

You may also have coverage options to help lessen an accident’s financial impact, such as rental reimbursement and towing coverage.

Contact Us

Contact Freeman Insurance Services, Inc. in Albany, California, to get car insurance tailored to meet your needs. Our agents can help you get auto insurance coverage at favorable rates.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.