The Basics of Auto Insurance

The Basics of Auto Insurance
G-Stock Studio/Shutterstock
Tribune News Service
Updated:
0:00
By Donna LeValley From Kiplinger’s Personal Finance Question: What is auto liability insurance?
Answer: Basically, liability coverage is the part of your auto insurance policy that pays for the other driver’s expenses if you cause a car accident. It does not, however, cover your own. There are two types of liability coverage: bodily injury and property damage. In some states, a third type of liability coverage called uninsured/underinsured motorist coverage is also required.