Monday, January 28, 2008

Auto Liability Insurance

Find into about auto liability insurance. Check out the information about two types of liability coverage provided by auto liability insurance policy.

Auto Liability Insurance refers to that Auto Insurance which provides Liability Coverage. In reality, we find that almost all Auto Insurance Policies offer Liability Coverage. This is because the Liability Benefits are the insurance benefits that the policyholders most commonly require.
Buying an Auto Liability Insurance Policy is a must for all the automobile owners. They can get two types of Liability Coverage under an Auto Liability Insurance Policy.

The Two Types of Liability Coverage provided by Auto Liability Insurance Policy are discussed below:
• Bodily Injury Liability Coverage
Bodily Injury Liability Coverage pays for the Medical Bills and Lost Wages. When other people suffer from bodily injury due to an accident made by the policyholder’s car, then they can move to court to take legal action. In this case, when a lawsuit is filed against the policyholder, the Bodily Injury Liability Coverage of the Auto Liability Insurance policy provides legal defense to the policyholder. Auto Liability Insurance Policy generally offers Dual Coverage Limit in case of Bodily Injury Liability Coverage. There are limits on the amounts that can be paid in maximum, per person and per incident of accident.

• Property Damage Liability Coverage
Property Liability Coverage covers the property damage expenses caused to others in the car accident by the policyholder. This type of coverage of Auto Liability Insurance pays the Repair Cost and Replacement Costs of the things that are damaged by the policyholder’s car. If the party who has suffered from the accident files a lawsuit against the policyholder, then this coverage helps the policyholder by paying his Legal Fees.

This type of Liability Coverage has over limit to the amount that can be paid per accident. The Coverage Limits can be selected by the policyholders. If they choose limits which are too low, then they remain exposed to Financial Risk. In case of any accident if damages exceed the selected limit, the amount above the limit have to be paid by the policyholders. This may affect the savings and future earnings of the policyholder. So, one should choose the liability Coverage Limit such that his current assets and future net worth remain protected even in the case of a car