Automobile Liability Insurance Law and Legal Definition

Automobile liability insurance is coverage if an insured is legally liable for bodily injury or property damage caused by an automobile. It is also known as no fault insurance.

Bodily injury liability coverage in auto liability insurance pays medical bills and lost wages. An auto liability insurance policy generally offers dual coverage limit in case of bodily injury liability coverage. There are limits on the amounts that can be paid in maximum, per person and per incident of accident. Property damage liability coverage in auto liability insurance covers the property damage expenses caused to others in a car accident by the policyholder. This type of insurance coverage pays the repair cost and replacement costs of the damaged things.