Liability Coverage in your auto insurance policy, no matter which state you live in, its required at some level. But do you understand what Liability Coverage is and what it protects?
Liability is usually built from two components
(1) Bodily Injury
(2) Property damage.
Bodily Injury Liability Coverage helps to protect you if you are responsible for an accident that hurts another person.
Bodily Injury Liability can help you pay for the other person’s medical bills, compensation for loss of income and emergency aid at an accident scene as well as your legal bills if that person sues you.
Two limits exist within Bodily Injury Coverage:
(1) Per Person
(2) Per Accident
For Example, Within a policy, you might see a$50,000 maximum payment per person and a $100,000 maximum payment per accident.
Then there’s property damage liability coverage, for damage you cause to someone else’s property but not your own.
If you hit someone else car, for instance, or run into their house or storefront.
Property damage liability coverage can help pay for the structural damage, repair and replacement costs for stationary objects like fences, even vehicle repair and replacement.
It could even help keep your assets safe if a covered accident results in a lawsuit.
On your policy, the Per person, Per accident and Property damage limits are often written like this
Per person Per accident Property damage
An accident can lead to financial responsibilities so it’s a good idea to make sure you carry enough liability coverage to protect your self.
So now for a quick overview:
Liability coverage = Bodily injury + Property damage coverage
Bodily injury liability coverage can help pay for medical bills and other related expenses if someone else is hurt in an accident you are responsible for.
Property damage coverage an help protect your assets and help pay for the structural damage, stationary object, and another person’s vehicle.
You May Also Like To Read: Types of Auto insurance coverage
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