Automobile insurance liability generally describes the insurance policies that drivers carry to protect them from paying out huge sums of money if they are deemed to have caused bodily harm or property damage in an automobile accident. State requirements in the USA are often different, but generally speaking, every automobile operator must carry some type of liability insurance to legally drive on public roads.
Buying motor vehicle insurance can be a dichotomy of sorts. One one hand, every driver wants to pay the lowest possible cost for his automobile insurance. At the same time however, he wants to get the maximum coverage possible. This means that in the event of an accident in which he has caused harm to someone or to someone's property, while operating a vehicle, he would like his insurer to pay the full cost, no matter how much money that turns out to be.
But automobile insurance coverage is usually not that simple. Sooner or later, each driver will have to strike a balance between the highest possible liability coverage desired, and an affordable premium. The premium refers to the monthly or yearly cost of buying appropriate automobile insurance.
Generally, all vehicle insurance policies will cover damages to a third party, where you are deemed to be the person who caused the accident. Every state in the USA has a minimum coverage that is either recommended or required. This assignment of responsibility may be made through a court of law, or through the insurer's investigators. In any case, once damage is assessed and assigned, somebody has to pay.
If this automobile insurance liability is assigned to you, it will generally fall into two categories; bodily harm to other person or persons, and property damages to another automobile, or a stationary object like a building or fence. In some cases, you can purchase an insurance policy which combines damages for both types of liabilities. In other cases, you can define how much liability you are covered for, based on the above categories.
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