Explaining the Concept of Liability Insurance

Liability Insurance, as the name suggests is all about the basic insurance coverage for losses and injuries done to the other party in accidents where the policy holder is at fault. Liability insurance is a very essential component of auto insurance and extends the scope of insurance policy altogether. There are many companies providing liability insurance as part of the overall auto insurance policy. So if in case you are looking for car insurance agencies in California, or for that matter in any other part of the country, just make sure that they provide liability insurance and comprehensive coverage.


Types of Liability Insurance

Auto liability insurance is usually classified into two categories, bodily Injury and property damage coverage. Suppose, in case you cause an accident that inflicts bodily injury or even kills the other person, the bodily injury part of your Liability insurance will pay for the subsequent expenses. It would cover medical bills, funeral expenses, long-term nursing care, expenses for pain, suffering or emotional trauma, rehabilitation charges, lost earnings, etc. It is up to the policy holder to select the extent or limit of the liability would be proportionate to the premium charges in equal degrees.

Similarly, in case you are at fault in an accident that causes damage to another person’s property, then property damage portion of your liability insurance would pay for the expenses incurred by the other party. This element of the insurance policy will also cover repair charges, replacement of damaged items, houses, lamp posts, and other such private properties.

On the other hand, general liability insurance is a coverage that insures the policy holder against financial liabilities resulting from general accidents such as slippage and dog bite. Liability insurance also includes the legal defense costs arising out of the involvement of policy holder in an accident.

Laws and liability Insurance

There are many states in the United States that have liability insurance as mandatory for all vehicle owners. That means, as required by law, anyone who drives vehicle needs liability insurance. California is the case in point. So in case you are looking for car insurance in Anaheim, then it is mandatory to at least have liability insurance for your car. Even for-hire truckers who operate under their own authority must at least have liability insurance for obtain a filing.

Limits for Liability Insurance

There are different degrees of liability limits available for the customers to choose from. These limits have a direct bearing on the premium rates and determine the maximum amount that your insurer would pay for the damages that have been incurred by the other party. These could be either split into various categories or might be lumped up all together as one. For example, the insurance company may in advance set the limits for payments to be made different types of liability as per the agreed terms. You could, in this case have different limits for different types of liabilities. Premium rates would then vary accordingly.

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