In the event of an accident in the Billings area, you want to make sure that you have the right insurance coverage. Without proper insurance, you may be responsible for the other driver's medical expenses and property damages, which could amount to thousands of dollars. That's why liability insurance is important. What does liability insurance cover? How does liability insurance work? What does it pay for? Let the finance team at Underriner Volvo fill you in on all the details regarding auto liability insurance.

Auto Liability Insurance: Definition

To start, we'll look at the auto liability definition.This form of insurance covers the other driver's expenses in the event that you are in an accident and are found at fault. The fact that every state in the country requires all drivers to have liability insurance should give Bozeman-area drivers extra peace of mind. Whether you are found at fault in an accident or not, you won't have to pay out of pocket for damages if you hit someone else's vehicle. Since all drivers must have liability insurance, it also means that or if your own Volvo car or SUV is hit by another car, their insurance will pay for repairs.

What Does Liability Coverage Pay for?

The auto liability insurance definition above provides a general description of this coverage, but it doesn't go into the details of what auto liability coverage pays for. There are two types of liability coverage, and most states require both.

  • Bodily Injury -Covers medical expenses incurred by the other driver and their passengers in the event you are in an accident and found at fault.
  • Property Damage -Pays for damages to the other party's property, like their car, when that damage is caused by an accident where you were found at fault.

How Does Liability Insurance Work?

If you get into an accident, you should exchange insurance information with the other driver, no matter who you believe is at fault. The insurance companies will work out who is at fault and how much liability each driver may or may not be responsible for. They will then distribute the claim accordingly. If either party is not satisfied with the resolution, they may take it to court. This legal aspect is why you should never admit fault at the time of the accident.

Important Notes About Liability Insurance

There are some important things to be aware of if you find yourself in an accident while driving on the roads in and around Shepherd.

  • Liability coverage does not cover your medical expenses or property damage. You will need additional coverage for that.
  • The minimum amount of liability coverage required by state law may not be enough in the event you are in an accident. For example, if you've bought $50,000 worth of coverage but cause $70,000 worth of damage in an accident, you may be held responsible for the remaining $20,000.

The Finance Team at Underriner Volvo is Here to Help

Whether you want information regarding other auto coverage options, such as GAP insurance, or if you're trying to decide whether to lease or buy a new Volvo, our finance specialists can help. We are here to make your Laurel-area car shopping experience as easy and convenient as possible. Please feel free to reach out to us if you have any questions.