Liability car insurance is a type of vehicle insurance that provides financial protection for a driver found at fault for property damage or injuries to others in an automobile accident. Automotive liability insurance is sometimes called third-party auto insurance since it covers damages incurred by third parties.
Types of Liability Car Insurance
There are two types of liability car insurance coverage:
- Property damage liability insurance helps cover the costs of repairing or replacing the vehicles of other drivers involved in an accident. It can also cover damages to other people’s property caused by the policyholder’s car (such as fences, mailboxes, buildings, etc.). Property damage liability (PDL) car insurance is required to operate a vehicle in Florida.
- Bodily injury liability insurance helps protect a driver who is at fault in an accident and is responsible for paying others’ medical expenses, loss of income, and other expenses. This insurance may also help cover the policyholder’s legal fees if the accident results in a lawsuit. Bodily injury (BI) insurance is also required in Florida as well as, Personal Injury Protection (PIP, also called “Florida’s No-Fault Insurance”).
How Does Liability Car Insurance Work?
Liability car insurance helps pay the costs of damages that result from car accidents. There are two important things to know about liability insurance in general:
- It covers property damage and bodily injuries that the insured driver is found at fault for in the accident.
- Liability insurance does not cover the policyholder’s expenses resulting from an accident. Drivers need a vehicle insurance policy to cover repairs for damage to their vehicle.
What are the Liability Limits?
When purchasing liability insurance, it is necessary to establish limits for the insurance’s property damage and bodily injury provisions. The insurance provides protection for the policyholder up to the policy’s limits. Each state has a specific minimum for both.
The Florida Department of Highway Safety and Motor Vehicles requires a minimum of $10,000 personal injury protection (PIP) and $10,000 property damage liability (PDL) for as long as a driver has a valid Florida license plate. Florida State Law also requires auto owners to carry a minimum of $10,000 per person/$20,000 per accident in Bodily Injury Liability. Although Florida has a minimum required amount of liability insurance, drivers may purchase a greater amount of liability insurance coverage.
The coverage limits on a liability insurance policy are typically expressed as three numbers. As an example, the limits for a policy might be shown as 25,000/50,000/20,000 or 25/50/20.
- The first number is the maximum that the policy covers for bodily injury per person involved in the accident.
- The second is the maximum coverage for bodily injury per accident for all injured persons.
- The third number is the maximum coverage for property damage resulting from an accident.
If the bodily injury or property damage happens to be greater than the limits, the injured party could file a lawsuit for the remainder.
What Liability Insurance Does Not Cover
Liability coverage typically does not pay to repair damage to your personal car after an accident, your personal injuries after an accident for which you are at fault, damage caused by uninsured or underinsured drivers, or by other factors such as hail.
In the case of these events, you want collision, comprehensive, medical payments, and uninsured/underinsured motorist coverage. Consult your insurance agent to ensure that you have the auto insurance that meets your needs.
ABC Dennis Insurance
ABC Dennis Insurance is an independent insurance agency established in 1997 that provides automobile insurance to its customers. If you have not reviewed your insurance coverages this year, please call our office at (813) 949-7765 or email us.
Besides auto insurance, we can help with all your insurance needs. As an independent agency, we find the best insurance coverage with the most competitive rates.
Resources
Liability Car Insurance (WalletHub)
Liability Car insurance (Investopedia)
Fault or No-Fault Accidents: What it Means for Your Auto Insurance Claims (Value Penguin)
What is Third-Party Auto Insurance on Your Auto Policy? (The Balance)
