Auto Liability Insurance
Auto Liability Insurance is the basic of any Auto Insurance. There are a lot more types of Auto Insurances available in the auto insurance market.
Auto Liability Insurance helps the policy holder when he or she is caught in a traffic accident and proved faulty. As per rules of that state the person has to bear the compensation up to the bill amount for repair of damages caused by the accident.
Auto Liability Insurance takes liability of both the living and non living thing damaged in accident. Means it covers two types of liability – first one is Personal Injury Liability, when a person other than the driver or passenger of the auto at fault is bodily injured in an accident and the second one is Property Damage Liability, when any property is damaged in an accident.
Personal Injury Liability segment of Auto Liability Insurance is responsible for repayment of medical bill of the driver or passenger of the other auto with which the policy holders’ auto collided or any pedestrian or bystander bodily injured by the policy holders’ auto for his or her injury. It also covers monetary compensation for the pain the person has to suffer for that.
Property Damage Liability segment of Auto Liability Insurance is liable to monetary compensate the damage caused to others’ property in an accident.This covers the other persons’ vehicle or any house or fence or building damaged in any accident.
In almost all the states in USA it is mandatory to have Auto Liability Insurance coverage of the original Auto Insurance for any auto driver. At least for the minimum amount set by the respective state law. There is no limitation for any maximum liability amount for this insurance but the minimum amount varies from one state to another. The average of the minimum amount set for bodily injury for the other driver is $15,000 and for his or her co-passenger or any other injured in the accident is in total of $30,000 and minimum property damage coverage is $5,000. For some state like California it is even lower or for the state like Wyoming it even higher.
If the money settled claimed amount crosses the coverage of Auto Liability Insurance, the person is bound to give the amount even by selling his or her property, so it is wise decision to go for higher coverage