car accident car insurance

Understanding liability

Auto insurance generally comes as a package of protections. One part of the package, required by most states, is liability insurance. What exactly is this? If you are responsible or cause an accident while driving, you may be required to pay for or, in legal terms, be “liable” for damages. If an accident occurs, you may be found liable for damages to the other person’s property. Repairs can be quite costly and liability insurance will cover you. In addition, if another person is injured in an accident, you may be found liable and become responsible for paying their medical bills. In such a case, liability insurance will cover the costs.

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