AUTOMOBILE LIABILITY INSURANCE Meaning and
Definition
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Automobile liability insurance is a specific type of insurance coverage that provides financial protection for an individual or entity against claims and legal liabilities arising from accidents or injuries caused by an automobile. It is a mandatory insurance requirement in most jurisdictions, as it aims to ensure drivers are financially responsible for their actions on the road.
This type of insurance policy covers a broad spectrum of liabilities, including bodily injury liability and property damage liability. Bodily injury liability coverage provides compensation for medical expenses, loss of income, and other expenses related to the injury or death of other individuals involved in an accident caused by the insured driver. Property damage liability, on the other hand, covers the costs related to repairs or replacement of damaged property owned by others, such as another person's vehicle or public infrastructure.
Automobile liability insurance may also include coverage for legal fees, settlement costs, and court judgments in case the insured driver is sued following an accident. The coverage limits for liability insurance are typically defined by the policy, with separate limits for bodily injury per person, bodily injury per accident, and property damage per accident.
It is important for drivers to have automobile liability insurance to protect themselves financially and fulfill legal obligations. Failure to have this coverage may result in penalties, such as fines or license suspension.
