Car insurance policies are designed to secure the property of policyholders and others. Generally, liability insurance will include three separate components in the event of an accident. It compensates to the policyholder for bodily injury for each accident during valid policy period. But, it is important to note that bodily injury will be covered up to a specific amount.
This type of auto insurance covers all property damage which is a result of the accident. Due to its importance, most states need that all drivers should have liability vehicle insurance. Sometimes, plan is available as a package which means that the motor insurance cover cannot be bought separately.
An auto owner cannot buy a plan that only covers property damage. In fact, the potential injuries which insured person cause to others and the resulting lost wages of the other party will be compensated.
Under this vehicle insurance type, auto owner is covered else causing an accident without any coverage can leave you holding the bill for expenses like possible funeral costs, loss of income recovery, legal expenses or emergency aid. As it protects you from damage you do to others or to property in an accident, it has so much importance for auto owner. Bodily injury liability coverage secures you in case you’re at the fault for an accident which injures another person, covering their lost wages and injuries.
This coverage compensates for medical expenses for bodily injury, expenses of medical services, emergency aid at the scene, funeral expenses and legal defense fees. Property damage cover includes damages you cause to other’s property such as their mailbox or car.
It compensates for structural damage to storefronts, homes, replacement or vehicle repairing cost and replacement or repairing costs of other stationary objects. Remember that it excludes your own injuries and damages caused to your own property.