In: Finance
John turned 19 and started college at Northern Colorado University after a year of community college. His father bought him a 2003 Honda Accord for $3,500 to drive while in school. John’s father promised him if he did not have any accident he would buy him a brand-new Ford Mustang GT once he finished his undergraduate degree.
Liability Insurance. Vehicle liability insurance has two components always included together: Bodily Injurycoverage and Property Damagecoverage. Vehicle liability insurance is the basic insurance coverage that covers injuries or damage to other people or property if you're at fault for an accident.
liability insurance coverage helps cover the costs of the other driver's property and bodily injuries if you're found at fault in an accident. ... If you have liability insurance, your insurance provider will cover costs for the driver's damaged car, minus your deductible, and up to your covered limit.
When you are found legally responsible for a bike accident, bodily injury liability coverage is the part of your insurancepolicy that pays for the costs associated with injuries to the other person or people involved. Thiscoverage also provides a legal defense in the event that you are sued for damages.
Property damage is a type of liability coverage. Liability coverage always refers to damages to another's vehicle,property, and/or belongings that results from an accident you caused.