Auto Liability Insurance

What is Liability Only?

Auto Liablity InsuranceThe Term liability only is thrown around a lot by Insurance agents and customers alike, but what does it mean? Too many customers is means give me the cheapest coverage I can buy so I can get out of here as soon as possible. But there are MANY things to consider when it comes to Auto liability insurance.

Let’s start with what liability covers. Most liability policies state that it covers “damages for bodily injury and property damage for which an insured is legally responsible because of an accident” or something similar. Let’s break that down for a second.

  1. There has to be damage. Either to property or person. The property damaged could be to a car, a house, a fence, or some other kind of property. Bodily injury means someone had to get medical attention of some sort. Could be by an EMT, a Doctor, a Chiropractor, etc.
  2. The insured has to be legally responsible for the damage (some level of liability). This means the police report deemed you to be at fault to some extent.
  3. There had to be an accident of some kind.

Sounds funny that we would break that down in such a way, but it is important that all 3 pieces exist. Liability also covers the legal fees required to defend you in the event that you do cause the damage described above. If you have recently spoken to a lawyer, you know how important this part of liability coverage actually is.

Like any policy there are exclusions to the auto liability insurance policy, and it is important that you understand these. For example;

  1. If you intentionally cause the damage – NOT COVERED
  2. If you are using it to transport people (yes Uber and Lyft Drivers I am looking at you) – NOT COVERED (liability coverage may be added to the policy by SOME companies.

There are many others, but these two are specifically worth noting in our road rage, Uber filled world.

Understand the liability limits on your policy. Usually auto liability is described in 3 numbers like this:

100,000/300,000/100,000

The first number indicates the bodily injury coverage per person. The second indicates the bodily injury coverage per accident (meaning the total payout for bodily injury), and the third number indicates the total coverage for property damage. So if you get in an accident and injure the driver the total amount in this case would be $100,000. At $100,001 in damage you are responsible for the additional $1.

Now, let’s say there are is a driver and 2 passengers. The total for any 1 person is still $100,000, but now the policy would pay $100,000 for each, so a total of $300,000. But let’s say there is the driver and 3 passengers and they all get hurt in an accident and it’s your fault and they all have major medical bills of $100,000 each. The policy pays out a total of $300,000, and you are on the hook for the other $100,000.

Clear as mud I am sure, but it’s important to understand that there are limits to the policy, and understanding these limits will help you to purchase liability coverage that suits your needs.

Liability for auto insurance is important. So much so it is required, by law, that driver’s purchase the coverage before getting on the road. Start Your Auto insurance online. We represent a number of different insurance companies to ensure you get great coverage at an affordable price every time.

This is a general explanation of coverage and different companies may treat these coverage options differently for information on exactly how your policy will respond please refer to your policy declarations page as well as the terms and conditions of your insurance policy.



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Gila Insurance Group LLC

805 W Court St. S
Safford, AZ 85546

Toll Free - (877) 784-6787
Local - (928) 428-6440
Fax - (888) 634-6384


About Gila Insurance Group

Customers choose Gila Insurance Group LLC as their insurance agent because they like being able to fill out one application online and then getting multiple quote from highly rated insurance companies. They like the friendly staff that takes the time to help them understand what they are purchasing. They like that the staff is trying to get the best coverage for them at an affordable price, and they LOVE that once they are customers Gila Insurance Group monitors their rates. If rates start to get out of hand they love that they have someone looking out for them to see if they can find a better option!

While Gila Insurance Group LLC serves Safford, Thatcher, Pima and all of Southern Arizona, they are also licensed in 32 states and serve clients from all over Arizona, California and this great Nation. Gila offers a variety of products including auto insurance, homeowners insurance, RV insurance, and business insurance. However, Gila has several specialties which include insuring investment properties such as rental properties, and fix and flip projects and Manufactured and Mobile homes.