Liability coverage protects you if you are at fault for an accident and you injure someone or damage someone’s property. It also provides you with legal defense if the other party files a lawsuit against you. There are two parts to liability coverage: bodily injury liability and property damage liability. They are considered to be mandatory types of car insurance for most states.
What’s Typically Not Covered by Liability Insurance?
Liability coverage doesn’t pay for damage to your own car or costs related to your own injuries from an accident you cause. On the other hand, comprehensive coverage is a type of auto insurance that protects you against losses caused by covered events not related to a collision. These events include storms and natural disasters, such as a hurricane or a tornado, falling objects, theft, vandalism, or animal damage.
When shopping for a liability policy by comparing free auto insurance quotes, you will see coverage limits stated like this: $30,000/$60,000. The first number, $30,000, is the maximum amount your coverage will pay per person in an accident. The following number, $60,000, is the maximum your coverage will pay for the total accident. Deciding what limits you need will depend on your personal situation and the state you live in. And if you have a teen driver, you will pay higher rates for teen car insurance, especially if your teen has been racking up tickets or accidents.
Keep in mind that having “full coverage” does not mean you are adequately protected. “Full coverage” is a term often used to refer to the combination of liability, collision and comprehensive coverage, however, coverage does not extend to incidents involving uninsured drivers – usually high-risk drivers. Make sure you are not placing your personal assets at risk by having enough insurance to cover a lawsuit judgment.