One of the fundamental types of car insurance coverage is liability insurance. Liability car insurance is an important aspect of responsible car ownership. It provides protection in case of accidents, damages or injuries financially. Kotak general insurance will unveil liability car insurance, explaining what it is and why it’s important for every car owner.
Understanding liability car insurance
Liability car insurance also known as third-party car insurance, is designed to cover the costs associated with the damages you cause to other third party’s car or property, as well as any medical expenses or legal fees resulting from injuries sustained by others involved in the accident. Liability car insurance is a type of coverage that protects you financially if you are at fault in an accident that causes property damage or bodily injuries to others.
Types of liability coverage
Liability car insurance typically consists of two main components:
- Bodily injury liability coverage pays for medical expenses, lost wages and legal fees for the other party involved in the accident if you are found at fault. It helps cover the costs of injuries, rehabilitation and potential lawsuits resulting from the accident. Keep in mind that bodily injury liability coverage has limits, which represent the maximum amount that is paid pay per person or per accident.
- Property damage liability coverage pays for the repair costs of the other party’s vehicle or any other damaged property if you are responsible for the damages caused through accident. It can include not only other cars but also fences, buildings or any other structures affected by the accident. Like bodily injury liability, property damage liability coverage also has limits.
Why you need liability car insurance?
- In legal terms, liability car insurance is mandatory. It is a legal requirement to have at least a minimum amount of liability coverage to operate a car on public roads. Failure to comply with this requirement can result in fines, license suspension or even legal involvement. Having liability insurance ensures that you meet the legal commitment of being a responsible driver.
- Liability car insurance provides you with a safety by covering the costs of damages you cause to other people’s property and their medical expenses. Accidents can happen at any time and the resulting damages and injuries can be financially challenging. Without liability coverage, you would be personally responsible for paying these expenses out of pocket, which could lead to financial damage.
- Liability car insurance helps protect you from the legal expenses and potential judgments associated with such lawsuits. In the event of a severe accident resulting in significant injuries or property damage, the affected parties may file a lawsuit seeking compensation. Legal proceedings are handled and, if necessary, provide legal representation on your behalf.
- In the absence of liability insurance, your personal assets, such as your home, savings or investments, could be at risk if you are held responsible for causing an accident. Liability coverage helps protect your assets by providing the necessary financial coverage to handle any claims or lawsuits resulting from an at-fault accident.
Liability car insurance is an important component of responsible car ownership. Ensuring that you meet legal requirements, protects your finances and provides peace of mind from potential lawsuits. Remember, having liability car insurance is not just a legal obligation but also a crucial decision for your own protection and that of others on the road.