Automobile Liability Insurance

Definition - What does Automobile Liability Insurance mean?

Automobile liability insurance is a type of insurance that covers damages the insured causes to a third party or their property while driving a vehicle. It does not cover any damages to the driver, their automobile, or other property. It does not have a deductible and is required in every state.

Insuranceopedia explains Automobile Liability Insurance

When at fault, the driver of the automobile is required to pay damages to all properties and people involved. This type of insurance not only protects the at-fault driver but also the victim of the accident. This insurance plan ensures that the driver does not have to pay medical, emergency, and funeral expenses all out of their pocket. It also covers all types of legal fees in case of any lawsuit.

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