Brief Information on What Is Liability Car Insurance

There are several different car insurances available on the market such as collision insurance, comprehensive coverage insurance or liability insurance. Thus, you may pop a question on the latest one by asking what is liability car insurance? What does it cover?

Keep on reading because it can help you learn more on the particular insurance.

What Is Liability Insurance?

As the name liability refers to being responsible, thus, this insurance also serves as your responsibility to any damage or injury you cause in an accident. Liability insurance is a policy that will reimburse the expenses on repairing damages you caused in an accident on the other party’s vehicles and properties.

This insurance does not only pay the aforementioned expenses but also any medical expenses on the other party’s injuries.

What Does Liability Car Insurance Cover?

There are several different types of liability car insurance you need to comprehend, along with their coverages as follows.

1.     Business Liability Insurance Coverage

This coverage is important for every company or business owner. The reason is it will protect them from any car crash. So, here are 3 types of business insurance coverage:

  • General Liability Insurance

Each company or business owner should have this insurance. It will help cover the damages or injury they cause to other people and their properties.

  • Commercial Auto Insurance

This is another crucial insurance you have to own. The reason is it will help you as well as your employees while you are on a business trip driving your company’s car. Other than that, this insurance also covers other people’s injury and property damages you cause in an accident.

  • Commercial Umbrella Insurance

This is also an important insurance to have. It will help you cover the exceeding costs from your liability coverage limits.

2.     Personal Liability Insurance Coverage

There are at least 2 different liability insurance coverages regarding personal insurance as in the following.

  • Bodily Injury Liability Insurance

You should consider taking this insurance type. The reason is it will pay for other people’s medical expenses from an accident you caused.

  • Property Damage Liability Insurance

This is another important insurance to have. It will help you cover any repair expenses on other people’s properties you are responsible for, especially in a car crash.

  • Personal Liability Insurance

Make sure you also consider this insurance. It will cover the expenses you pay for damaging other people’s properties. In addition, this insurance will also protect you should someone hurt himself while he is on your property.

  • Umbrella Insurance

You can consider having this insurance. The reason is it will extend the limits of liability car insurance you have and home one, too.


It is important for you to have liability car insurance. It can save you from any financial problems regarding any claims on injury or damages. More importantly, each area has their own rules, so you need to do your research before getting one.

Therefore, consult a reliable insurance agent for your best liability car insurance. They will explain everything clearly for your better decision. Hopefully, you can pick your insurance upon learning the information on what is liability car insurance above.