If you have been shopping around for auto insurance and looking at different policies, you’ve probably noticed one thing – they all include liability coverage. Because all insurance plans out there include liability insurance, you’ve most likely already deducted that having this type of coverage is very important, right? The truth is that not only is liability coverage important, but its required by law. Continue reading below to learn more about liability insurance and to discover about its importance.
Auto liability coverage covers the damage that you are responsible for in an accident. This includes damages to other vehicles, medical expenses from accidentally injuring somebody else, or damages to property.
Auto liability coverage falls into two different categories: bodily injury liability (BIL) and property damage liability (PDL).
Bodily Injury Liability – If you cause an accident and injure somebody, this coverage will pay for medical expenses, pain and suffering, lost wages, and other resulting expenses. BIL typical includes coverage for:
- Medical expenses for the injured
- Emergency aid at the scene of the accident
- Loss of income compensation
- Funeral expenses (God forbid)
- Legal fees
Property Damage Liability – If you cause an accident and damage property, PDL will cover you. This coverage includes:
- Car repair
- Damage to homes and businesses
- Damage to stationary objects on the side of the road (government property, etc)
Liability Limits and Amounts
When shopping for liability coverage, you might see three numbers next to head other that look something like $50,000/$100,000/$50,0000. The first two numbers are BIL numbers. Number 1 means bodily injury, per person. Number 2 means bodily injury per accident. The third number is property damage.
So, if you have liability limits of $50,000/$100,000/$50,0000, that means:
– $50,000 maximum coverage per person
– $100,000 maximum coverage per accident
– $50,000 maximum coverage for property damage
Important Of Liability Coverage
You need to understand that liability coverage is a must. If you get into a serious accident without it, it could financially cripple you and your family. Even if you have minimum liability overage, you might still be responsible for way more than you can afford. Because of this, you need to make sure you not only have liability coverage, but that you have adequate liability coverage (not just your state minimums).
Take time to explore the information on this site to learn more about liability insurance. If you still have questions, please give your auto insurance agent a call.