Property liability coverage is car insurance coverage that pays for the damage that you do to other people's vehicle or property (i.e. Most car insurance companies offer additional coverage that you can add to your policy, too. When you enter into a contract with an insurance company, they agree to protect you from financial losses resulting from an accident, in exchange for your payment of a premium. Similarly, your liability insurance won’t cover injuries you sustain in an accident you caused. Auto liability insurance coverage helps cover the costs of the other driver’s property and bodily injuries if you’re found at fault in an accident. their home or business) if you cause an accident. As a responsible driver you will no doubt be aware that having insurance for your vehicle is mandatory, but, due to the terminology used by insurers, you may not have a complete understanding as to what exactly it is and why you need it. Simply put, auto insurance is a safety net. The example car insurance coverage above covers a maximum of $150k in medical bill payments per person you injure with a total of $300k per accident you cause. It is a contract that you have with an insurance company in which you agree to pay a premium, and in the event of an accident, the company agrees to pay for your covered damages, as outlined in your specific insurance auto policy. This is an optional type of auto insurance, so it will add to your premium, and usually has a deductible. Auto insurance is protection. Car insurance is a type of coverage that protects you financially if you're in an accident. Your policy will define what losses are covered, and the coverage limits. What is Auto Insurance? What is car insurance? Auto insurance provides coverage for property, medical expenses, and liability. For example, gap insurance provides coverage for people who have auto loans. The auto liability coverage definition may sound simple enough, but here’s a real life example: you’re at a four-way stop a few blocks from your house. Read our article to learn more about auto insurance and if you need it. Car Insurance is a legal requirement. But it means paying less out of pocket when you cause an accident and need repairs to your own car. Car insurance protects you against financial loss in case of an accident or theft. Important additional car insurance coverage. If your car is totaled in an accident or stolen, most car insurance policies will pay you the actual cash value of the car, which could be less than what you still owe on the loan. Are covered, and the coverage limits your premium, and the limits. Insurance protects you financially if you need it financially if you cause an accident you caused out. Is an optional type of coverage that you do to other people 's vehicle property... 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