Definition

• Auto liability insurance is a product offered by insurance companies that pays for bodily injury or property damage caused to other drivers, passengers and pedestrians if you cause an auto accident.
  
  

Purpose

• Liability insurance is designed to allow financial stability by shielding you against large losses. This coverage provides protection, up to your policy limits, from being sued for injuries and property damage.
  
  

Types

• The two types of auto liability coverage are bodily injury and property damage. Bodily injury liability covers injuries to others and the resulting medical expenses, while property damage liability pays for car repairs and damage to other people's personal property.
  
  

Limits

• When you purchase an auto liability policy, you will select a coverage limit. This is the most the policy will pay for damages, and you will be responsible for any damages that exceed the coverage limit.
  
  

Costs

• The cost of liability insurance varies considerably depending your driving history, your location, the type of car you drive and the coverage limits you choose.