Liability insurance comes in two varieties:
Liability coverage for damaged property: Damage to another person’s property caused by you or someone else driving your vehicle with your permission is covered by this type of insurance. The prior illustration of the minor collision and ensuing guard harm gives an illustration of a situation in which this kind of inclusion kicks in, yet property can allude to any construction that the to blame driver’s vehicle hits, from light presents on structures.
Liability coverage for bodily injury: The injuries you cause to someone else in a collision are covered by this coverage. This kind of coverage might apply, for instance, in the event that the other driver suffered whiplash as a result of your collision.
If you live in a state with no-fault insurance, the third party’s personal injury protection policy covers losses up to a certain amount, and the at-fault driver’s bodily damage liability policy covers costs above that amount. Note that 12 states and Puerto Rico have no-fault laws, so if you live in a state with a traditional tort insurance system, the at-fault driver’s medical insurance will cover their own injuries or those of passengers, and their bodily damage liability coverage will cover third-party injuries.
A threshold is a set of conditions under which another driver can sue you for injuries for which you were at fault if you live in such a state. The threshold can be a verbal threshold (in verbal terms) or a monetary threshold (amount of medical bill, for instance) and is determined by the severity of the injury.
