What does liability insurance cover?

Damage to Others

If you’re involved in an accident and are at fault, liability insurancecovers expenses for bodily injury or damage to other vehicles and property. Forexample:

• Bodily injury: Medical costs for the injured party.
• Property damage: Repairs or replacement of damaged vehicles, buildings, or other property.

Legal Costs

In some cases, accidents can lead to legal disputes. If you need to appear in court, liability insurance often covers the associated legal costs.

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What Does It Not Cover?

• Damage to your own vehicle or medical expenses for yourself; for this,  you’ll need additional coverage like collision insurance.
• Damage caused intentionally.
• Losses outside the policy terms, such as driving without a valid license.

Why Is Liability Insurance Mandatory?

In the Netherlands, having liability insurance is legally required forall car owners. It ensures that victims of accidents are always compensated,even if you can’t pay the costs yourself.

Conclusion

Liability insurance is the foundation of any car insurance policy. It covers damage you cause with your vehicle to others, including bodily injury and property damage. It’s essential for your financial safety and legally required.

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