Liability Insurance

Liability Insurance protects the policyholder from covered damage their car does to others.  These are damages for which the driver is legally liable.

Liability insurance covers not only the policyholder, but also family members and relatives living with the policyholder.  Any person driving the policyholder's car with their permission is also protected by the liability insurance.

Liability insurance pays for legal defense costs, bail bond, and emergency services to others.  This insurance pays legal claims for property damage, injuries to others, emergency medical services, and even loss of income.  The primary benefit liability insurance provides is financial security to the driver of the car in the event of a costly accident, or lawsuits that result from a car accident.

While the above example and definition apply to car insurance, liability insurance is also available as part of a homeowner's insurance policy.