Liability coverage is for accidents that are your fault. Bodily injury liability pays for bodily injuries that you cause to another person. Property damage liability pays for property damage that you cause to someone else. Auto liability insurance is a type of insurance that covers the cost of injuries and damage to the other driver's property if you are at fault for an accident.
Auto liability insurance consists of both bodily injury and property damage liability insurance. Car insurance rates vary from driver to driver and are based on many factors, such as driving history, claim history, and where you live. The most common types of liability insurance are general liability insurance for businesses, liability coverage offered by a homeowners insurance policy, and liability insurance for cars. In addition, homeowners insurance policies often include personal liability insurance to protect the policyholder if they are considered legally responsible, inside or outside their home, such as someone falling in their backyard due to unsafe conditions.
The term “liability only” auto insurance is used to distinguish policies with basic coverage from those with collision insurance and comprehensive coverage. You should have liability insurance only if the annual cost of full coverage exceeds 10% of the value of your car. Liability insurance is car insurance that covers damage or injury to a third party's property in the event of an accident. For tips on whether liability insurance alone is sufficient for your situation, check out WalletHub's guide to how much car insurance you can take out.
Auto liability insurance comes into play when the policyholder is found to be at fault for a car accident. Auto liability insurance covers medical expenses and property damage expenses incurred by other people as a result of an accident that you were held responsible for. Since car insurance is a requirement in all 50 states, companies may wonder why you don't currently have coverage. Check out WalletHub's analysis of the 17 top insurance companies to find the cheapest liability insurance available in your state.
The medical payment coverage in your auto insurance policy will cover your co-worker's hospital bill up to the limits of your policy.