What Does Auto Liability Insurance Typically Cover?

An auto insurance policy with auto liability coverage not only covers the costs of resulting damages to another’s property but also the costs of bodily injuries they may have suffered.

Property Damage Coverage

Automobile accidents can occur in many different ways and can involve many different types of property. For example, a moment of inattention may have caused the driver to sideswipe another vehicle, ripping off their side-view mirror, scraping their paint job, or denting a door. Or the driver may have taken a corner too quickly in their vehicle, causing it to jump a curb and hit someone’s fence or even their house or a storefront.

Auto liability insurance covers costs of a wide range of damages to vehicles, buildings, landscaping, and structures like fences, gates, mailboxes, and light poles, as well as road infrastructure like signs and concrete barriers for which a driver may be financially liable if they are determined to be at fault. Whether the driver has damaged private, commercial, or government property as a result of the accident, auto liability insurance helps cover the costs of repair or replacement of the damaged property.

Property damage liability component of auto liability insurance may also cover other costs incurred as a result of property damage caused by an automobile accident. For example, if the driver has damaged someone’s vehicle to the point that they can no longer drive it, liability insurance typically covers rental fees for a temporary replacement vehicle as they look for a new vehicle or wait for their vehicle to be repaired. Similarly, if the driver has damaged a family home, and the individuals residing in the home must live elsewhere while repairs are made, liability insurance may cover the costs of their lodging.

Bodily Injury Coverage

Vehicles are large, heavy machines, and the forces involved in a collision with another vehicle can cause severe injuries. If the driver is determined to be at fault and other people were injured as the result of the accident, the driver’s auto liability insurance covers the costs for their medical care, including, but not limited to:

Emergency care
Extended hospital stays
Surgery
Rehabilitation services
Prescriptions for pain medications
Long-term care

Along with providing coverage for the costs of medical bills, liability insurance may also cover costs for an accident victim’s pain and suffering they may have experienced as a result of the accident. Automobile accidents can cause a lot of emotional distress and trauma, both in the instant they happen and in the days, weeks, and months following. Emotional pain and suffering can be especially acute when compounded by severe injuries or long-term disabilities.

Accident victims may need counseling and other types of treatment for conditions like PTSD, anxiety, and depression. If those conditions were a result of an automobile accident or the injuries sustained from the accident, auto liability coverage may cover the costs of treatment.

Bodily injury component of auto liability insurance may also cover the costs of the victim’s lost income if they are unable to work due to the injuries caused by the accident.