What Is Liability Coverage? - Auto Insurance
Liability coverage in your auto insurance policy, no matter which state you live in, it's required at some level. But do you understand what liability coverage is and what it protects? Liability is usually built from two components:
bodily injury and property damage. Bodily injury liability coverage helps protect you if you're 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: per person and 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's car, for instance, or run into their house or storefront.
Property damage liability coverage can help pay for structural damage, repair or replacement costs for stationary objects like fences, even vehicle repair or 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. An accident can lead to financial responsibilities, so it's a good idea to make sure you carry enough liability coverage to protect yourself. So now for a quick overview. Liability coverage equals bodily injury plus 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're responsible for. And property damage coverage an help protect your assets and help pay for structural damage, stationary objects, and another person's vehicle.
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