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Ask an Agent: What Is Auto Liability Coverage?

Published: March 2016

Liability coverage is required on most car insurance policies. But, what does it cover and how does it work? Allstate agency owner Biatris Guzman gives an example of how liability coverage helped her customer when he backed into a neighbor's vehicle.

Video Transcript

[On-screen] Ask an Agent: What is Liability Coverage?

[Voiceover] My name is Biatris Guzman. My agency is located in Harvard, Illinois, and I have a second location in Loves Park, Illinois.

Automotive liability insurance is a component on every auto policy that provides coverage to another party should our insured cause an accident.

It can help pay for things like medical bills, damage to that other person's vehicle, or other property damage.

[On-screen] Liablity coverage may help pay for:

  • Another person's medical expenses
  • Repairing another person's vehicle
  • Damage you cause to another person's property

[Voiceover] A great example of how liability worked for one of our customers: Our customer had backed out of his neighbor's driveway. He backed out and struck the neighbor's vehicle that was parked behind him. And, when he called us, we let him know that the liability coverage that he had on his auto policy would take care of any damage that he had caused the other person’s vehicle.

The customer's neighbor was able to get the damaged parts on his vehicle repaired, and he was able to drive a replacement car in the meantime while his car was being fixed.

[On-screen] Learn more about insurance coverage and concepts: www.allstate.com/askanagent

Details are specific to this claim. Each claim is different and handled on a case by case basis.

Coverage subject to terms, conditions and availability. Policy issuance is subject to qualifications. Allstate Property and Casualty Insurance Company, Allstate Fire and Casualty Insurance Company, Allstate Indemnity Company, Allstate New Jersey Property and Casualty Insurance Company. © 2016 Allstate Insurance Company, Northbrook, IL.

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Coverage subject to terms, conditions, and availability. Policy issuance is subject to qualifications. Allstate Insurance Company, Allstate Indemnity Company, Allstate Fire and Casualty Insurance Company, Allstate Property and Casualty Insurance Company, Northbrook, IL. © 2016 Allstate Insurance Company, Northbrook, IL.
ECC Monitor: OK