Liability insurance is a fundamental component of auto insurance that provides financial protection for drivers in the event of accidents causing bodily injury or property damage to others. This type of insurance is mandatory in most states, serving as a crucial safeguard against potential legal and financial liabilities arising from accidents on the road.
Vehicle liability insurance typically includes two types of coverage: bodily injury liability, which covers medical expenses and lost wages for individuals injured in an accident, and property damage liability, which covers the cost of repairing or replacing damaged property.
The cost of vehicle liability insurance depends on various factors, including the driver's age, driving history, type of vehicle, and coverage limits. Additionally, the state's minimum liability requirements and prevailing insurance market conditions also influence insurance premiums.