Liability Insurance
Coverage that pays for injuries and property damage you cause to others in an accident. Every state requires minimum liability coverage for drivers. It is split into bodily injury liability and property damage liability, each with its own limit.
Real-World Example
When Mike rear-ended another car, his liability insurance paid for the other driver's medical bills and vehicle repairs.
Related Terms
Disclaimer: This glossary entry is for informational purposes only and does not constitute financial or insurance advice. Consult with a licensed insurance professional for personalized guidance. GuardianChoices may earn affiliate commissions from links on this site — see our advertiser disclosure.
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