Accidents happen and you want to make sure you have appropriate coverage because it can become very expensive. Liability refers specifically to who is at fault. The person who caused the damage is liable to another person because of their actions. If you were at fault for the accident and it resulted in bodily injury to someone else or damages to their property, liability insurance coverage will protect you financially. It will cover any expenses to the injured party, which could include medical costs, damages to their vehicle or any legal and court costs.
Typically, minimum liability coverage is required by most states for any policy and is comprised of two types: bodily injury and property damage. It covers the damages you are legally responsible for after an accident.
- Bodily Injury Liability – In the event you cause injury to someone else or death, this will cover medical and hospital bills, rehabilitation, funeral expenses, loss of income, pain and suffering, legal and court fees if you are sued and any other possible costs due to injury sustained by the involved person.
- Property Damage Liability – If another driver’s property is damaged and you are at fault, this will provide coverage to any of those related expenses. It can include the repairs needed to fix the other person’s vehicle or purchase a new replacement, damages to buildings, fences, signs or signal lights.
One other important aspect you need to understand is liability limits. It is usually expressed in three separate numbers, such as $15,000/$30,000/$5,000. This refers to the maximum amount your policy will pay in case you need to use your liability coverage.
- The first number is the maximum amount your policy will cover to each person involved.
- The second is the total amount your policy will pay for all people injured in one accident.
- And the third number represents the maximum amount your policy will pay for repairs or replacements to damaged property involved.
For instance, with liability coverage of $15,000/$30,000/$5,000, $15,000 would be the maximum amount paid to anyone involved in an accident, but the total for everyone combined would not to exceed $30,000. And if there was property damage involved, the maximum coverage is $5,000. As you might expect, having lower limits will not cover you entirely and will leave you responsible for the excess costs. That is why it is important that you opt for the maximum limits that will fit comfortably within your budget in case you are involved in a more serious accident.
Liability coverage protects you from damages when you’re at fault, but does not cover damages to you or your property, which is why you also need to have collision and comprehensive coverage. However, understanding this vital part of your policy is one step forward in being fully protected on the road.
Now that you know more about liability coverage, it might be time to update your car insurance policy. Freeway Insurance can offer you a variety of affordable auto insurance quotes to choose from. Get a free car insurance quote online today.