Auto liability

Auto liability coverage provides protection against damages that a court may order you to pay as a result of an auto accident. As an example, if you are in a collision with another vehicle as a result of your not stopping at a red light and causing damage to another vehicle, you would normally be liable for the cost of such damage. The two major types of auto liability coverage are bodily injury liability and property damage liability. You may be liable even if you are not at fault, for example if you hit a small child who runs out into the street in front of you. The coverages also provide the costs of legally defending you in such matters.  Mandatory auto coverage is required by state law in most states.