Examples:
It was determined by the police officer that Dana was at fault for the automobile accident she was involved in, therefore Dana's liability coverage paid for the other party's medical expenses and repairs to their car.
Definition:
One's legal responsibility to pay for damages due to an accident or loss. Liability coverage for automobile insurance is the one coverage that is required in all states.
Related Terms
• Collision Coverage
• Comprehensive Coverage
• Limits
<Back to Last Page> <Full Glossary>
Liability
<Back to Last Page> <Full Glossary>
Explore Personal Insurance
Must Reads
About.com Special Features
10 Things You Can Do Today to Improve Your Credit
Easy steps to take control of your credit card debt. More >
Holiday Central
What to eat, where to go, fun things to do and how to save money on the perfect gifts. More >
©2009 About.com, a part of The New York Times Company.
All rights reserved.