If you cause a car accident, liability insurance will cover injuries to other people and damage to their property. Liability car insurance, sometimes called “third party” coverage, is one of the most important types of car insurance. In fact, states typically require drivers to have a minimum amount of liability insurance coverage.
Liability auto insurance comes in two forms. One is bodily injury liability coverage, which covers all expenses related to physical injury to other parties. The other is property damage liability coverage, which pays for repairs to the victim’s damaged property, including a car or a house.