Auto Liability
Auto liability policies are designed to cover damage caused by the insured's auto to other people and to their property. If the insured party is the cause of an accident and is injured or if the vehicle sustains damage, the auto liability policy will not cover either the repairs or the medical bills. If, however, another person is involved in the accident and either they or their property (vehicle) is injured, the policy would pay both for repairs and medical bills up to the limit stipulated in the policy. Once that limit has been reached, the insured party is responsible for the balance of the injured party's expenses.Normally such insurance has three parts: bodily injury per person, bodily injury per accident, and property damage. The policies are usually written "20/40/10," meaning the policy will pay up to $20,000 per person, $40,000 per accident, and will cover property damage up to $10,000. More Glossary Terms Explained here
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