If you're found to be legally responsible for an accident that damages another person's person or property, you are said to be liable. Liability insurance covers liabilities that may arise (up to the limit of your policy) as a result of you operating your vehicle.
Liability - Bodily Injury
Driving a vehicle creates a risk of bodily injury liability.
If you are found legally responsible for causing an accident that hurts someone outside of your vehicle, you are liable for bodily injury.
Bodily injury liability includes the cost of the injured party's medical bills as well as the legal costs involved.
Liability - Bodily Injury insurance covers medical and legal costs incurred by others created by an accident that you're responsible for. It is legally required to drive a vehicle on public roads throughout the United States.
Liability - Property Damage
Driving a vehicle also creates a risk of property damage liability.
If you are found legally responsible for causing an accident that causes damage to someone else's property - whether that property is another vehicle or some other type of property, such as a building - you are liable for property damage.
Property damage liability includes the cost of repairing the damage caused as well as the legal costs involved.
Liability - Property Damage insurance covers these property damage and legal costs incurred by others created by an accident that you're responsible for. It is legally required to drive a vehicle on public roads throughout the United States.