General liability auto insurance protects you from financial losses due to an accident that you caused. This article discusses what liability insurance does and doesn't cover. Keep reading to learn more about how this portion of your car insurance works.
What Are the Components of General Liability Auto Insurance?
Bodily injury and property damage coverage fall under general liability for an accident caused by you or another covered driver on your policy.
Bodily Injury 
Bodily injury refers to any injuries or deaths experienced by another driver or their passengers. If you or someone on your car insurance caused the accident, your insurer pays for these expenses.
Covered expenses typically include:
- Hospital and medical expenses
- Long-term nursing
- Rehabilitation
- Lost wages
- Funeral expenses
- Pain and suffering
- Property Damage
This portion of general liability car insurance refers to damage that results from an accident that you or another authorized driver on your insurance cause. This includes damage to their vehicle and other items, such as:
- Lamp posts
- Mailboxes
- Fences
Sometimes, accidents also result in legal action against you. Liability insurance covers your legal defense costs. Your coverage limit determines the maximum amount your insurer will pay out. Ask your insurance agent to help you understand how your policy works.
What's Not Covered in Liability Insurance
It's important to understand that liability coverage won't pay for damages to your vehicle. This protection falls under collision or comprehensive insurance. Discuss your obligations under the state minimum insurance requirements. Then, ask about additional coverage that may benefit you. Your auto insurance agent can help you decide on the optimal coverage for your lifestyle and driving habits.
Does Auto Liability Cover My Passengers?
No, the general liability portion of your car insurance doesn't cover your own passengers. It refers only to bodily injury and property damage suffered by another driver or their passengers.
However, you can purchase insurance that directly protects you, your car, and your passengers. Ask about medical or uninsured/underinsured auto insurance which covers you and your passengers. Personal Injury Protection covers your passengers as well.
Making a Decision
Most states mandate general liability as a basic coverage requirement. However, if you finance or lease a vehicle, additional coverage may be required by your lender or leasing company. Even if you pay off your car loan, you may want to protect your vehicle from accidents caused by other drivers.
Talk to your insurance agent today to discuss the car insurance types and coverage options available to you.