What is liability insurance?

Liability insurance is a type of insurance policy that provides financial protection to individuals and businesses for losses resulting from accidents, negligence, and other legal liabilities. In California, individuals and businesses who operate vehicles on public roads are required to have liability insurance. This insurance pays for any damages and losses caused by an accident, such as medical bills for the injured party or property damage to another vehicle. Liability insurance also provides legal protection if you are sued for an accident. The insurance company will pay for a lawyer to help you defend against the suit and to provide funds to cover any resulting legal damages. Without liability insurance, you could be personally responsible for the costs associated with a lawsuit. In California, liability insurance coverage can range from 15/30/5 to 100/300/100. The numbers represent the maximum dollar amounts the insurance will pay for bodily injury, property damage, and medical expenses respectively. Ultimately, liability insurance provides a financial cushion for individuals and businesses in the event of an unexpected accident. It also helps to prevent you from having to pay out of pocket for any damages caused in an accident. If you are operating a vehicle in California, having the proper liability insurance is critical to your financial security in the event of an accident.

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