Liability coverage (often simply called “liability”) protects you from damage you do to others or to property in an accident. Some level of auto liability insurance coverage is required in all 50 states.
Liability Coverage 101
Car insurance liability coverage is typically made up of 3 separate components wrapped up under the “liability coverage” heading.
- Bodily injury, each person (for example, $100,000 maximum payment per person)
- Bodily injury, each accident (for example, $300,000 maximum payable per accident)
- Property damage (for example, $100,000)
When shopping for or reviewing auto liability insurance coverage, you might see all 3 components lumped together, like this: $100,000/$300,000/$100,000. What’s most important is understanding what each liability component protects. It’s worth noting that you generally can’t buy just 1 or 2 liability coverage “pieces.”
Bodily injury liability coverage protects you if you’re responsible for an accident that hurts another person, covering their injuries and lost wages. Keep in mind, though, that liability car insurance is for injuries to other people – coverage doesn’t apply to your own injuries.
Property damage coverage covers damage you cause to somebody else’s property – things like their car or mailbox, or even their house or business. Again, it doesn’t apply to damage caused to your own property.
Bodily Injury Liability Coverage
If people are injured in an accident that’s your fault, Bodily Injury Liability coverage helps protect you from bills that can include:
- Emergency aid at the scene
- Medical expenses for bodily injury
- Medical services for sickness or disease
- Compensation for loss of income
- Funeral expenses
- Legal defense fees and/or bail bonds for anyone listed on your policy
Property Damage Liability Coverage
If another driver’s property is damaged in an accident that’s your fault, Property Damage can help pay for their:
- Structural damage to homes, businesses, etc.
- Repair or replacement costs for other stationary objects such as mailboxes, etc
- Vehicle repair or replacement costs
Property damage can also help keep your assets safe in the event of a lawsuit resulting from a covered accident.
How Much Coverage Is Enough?
Consider this: in a serious accident, your actual financial responsibility could far exceed your auto insurance coverage liability limits – leaving you on the hook for hundreds of thousands of dollars. That’s why it often makes sense to purchase the highest auto liability insurance coverage limits you can comfortably afford. While this coverage makes up a significant part of your total premium, it’s often money well spent if you’re ever in a serious accident.
Your best choice for insurance
The first right decision in protecting all of your assets is finding an insurance agent who understands YOU and your family. We pride ourselves in taking the time to discuss your needs to ensure that you don’t find a gap in coverage when you need it most…something that can’t always be done in 15 minutes and is too important to rush. Make sure you and your family are fully protected and call us at 407-977-5700 or email any time at firstname.lastname@example.org.
Learn more about your auto insurance:
- Coverage Basics
- Personal Injury Protection (PIP) Coverage
- Uninsured / Underinsured Motorist Coverage
- Medical Payments Coverage
- Collision Coverage
- Comprehensive Coverage