The Policy Explainer Logo
Back to Categories

Liability Coverage

Explore our liability coverage articles to learn everything you need to know.

Auto InsuranceCar Insurance+3

Auto Insurance Coverage Types Explained: What You Need to Know

Auto Insurance Coverage Types Explained: What You Need to Know

Discover the different types of auto insurance coverage available, which ones are mandatory in your state, and how to choose the right protection for your vehicle and budget.

CIS
Car Insurance Specialist
Read Article
Liability CoverageHomeowners Insurance+3

Liability Coverage in Homeowners Insurance: Why It's Crucial

Liability Coverage in Homeowners Insurance: Why It's Crucial

Understand the vital role of liability coverage in homeowners insurance. This expert guide reveals how personal liability protects your assets from costly lawsuits arising from injuries or property damage on or off your property.

IE
Insurance Expert
Read Article
Renters Insurance CoverageInsurance Exclusions+3

What Does Renters Insurance Typically Cover (and Not Cover)?

What Does Renters Insurance Typically Cover (and Not Cover)?

Demystify renters insurance! This expert guide clearly details what your policy *typically covers*—personal property, liability, and living expenses—and crucial exclusions, empowering you to protect your assets effectively.

IE
Insurance Expert
Read Article
Renters InsurancePersonal Property Protection+3

Renters Insurance: Why It's Essential and Surprisingly Affordable

Renters Insurance: Why It's Essential and Surprisingly Affordable

Think renters insurance is optional? Discover why this essential coverage protects your personal belongings and provides critical liability protection, and learn how surprisingly affordable it truly is.

IE
Insurance Expert
Read Article

Related Categories

Insurance BasicsUnderstanding InsuranceInsurance CoverageFinancial PlanningBeginner GuideAuto InsuranceCar InsuranceComprehensive CoverageCollision CoverageOpen Enrollment Period

Stay Updated on Liability Coverage

Get the latest liability coverage articles delivered to your inbox.

Frequently Asked Questions About Liability Coverage

Insurance is a contract between you and an insurance company that provides financial protection against specific losses or risks. You pay a premium, and in return, the insurer agrees to cover certain costs if a qualifying event occurs. You need insurance to protect yourself from potentially devastating financial losses that could result from unexpected events like accidents, illnesses, natural disasters, or liability claims.
A deductible is the amount you pay out-of-pocket before your insurance coverage begins. For example, if you have a $500 deductible and experience a $3,000 loss, you'll pay the first $500, and your insurance will cover the remaining $2,500. Generally, choosing a higher deductible results in lower premium payments, while a lower deductible means higher premiums but less out-of-pocket expense when you file a claim.
Insurance premiums are calculated based on several factors, including: your risk profile (age, health, driving record, etc.), coverage amount and type, deductible level, location (different regions have different risk levels), claims history, credit score (in many states), and industry data on similar risks. Insurance companies use statistical models to determine the likelihood you'll file a claim and price your policy accordingly.
An insurance agent represents one or more specific insurance companies and sells policies on their behalf. They work for the insurer and are typically paid through commissions. An insurance broker, on the other hand, works for you (the client) and shops around different insurance companies to find you the best coverage and rates. Brokers typically have access to more options but may charge fees or still earn commissions from insurers.
To file an insurance claim: 1) Report the incident immediately to your insurance company through their website, mobile app, or by calling their claims department. 2) Document everything related to the incident (photos, videos, police reports, medical reports). 3) Fill out the claim forms provided by your insurer with accurate information. 4) Submit all required documentation. 5) Work with the assigned claims adjuster who will evaluate your claim. 6) Follow up regularly until your claim is resolved.