What Does Auto Liability Insurance Typically Cover?

If auto liability insurance doesn’t cover automobile theft or damage caused by a break-in, what does it cover? Auto liability insurance typically includes two different types of coverages, Bodily Injury Liability and Property Damage Liability:

Bodily Injury Liability

Bodily injury liability coverage typically helps cover the medical costs and other associated expenses incurred by a third party resulting from an accident where the covered driver was at fault. This type of coverage does not cover injuries sustained by the covered driver. It is a third-party liability coverage that will typically cover medical and related expenses incurred by the other party in the covered accident. While the terms and conditions of each policy may vary, common expenses that may be covered include:

Emergency care services
Hospital expenses
Ongoing care
Emotional counseling
Loss of income
Funeral costs
Defense costs incurred by the covered driver in the event of litigation

Property Damage Liability

Property damage liability coverage helps cover the costs of damages incurred to third-party property resulting from a covered accident, including other vehicles, homes, businesses, trees, lamp posts ,and, in some cases, pets. This type of insurance helps cover costs associated with repairing and replacing others’ property but does not cover damages to the policyholder’s own property.

Auto liability insurance will typically cover loss and damages up to the limits set in the policy (minus the deductible). Costs exceeding the policy’s limits may remain the responsibility of the covered driver.