What is Liability Car Insurance and What Does it Cover?

Liability Car Insurance is what protects you from an at-fault accident. This type of coverage comes in two parts. The first covers any property damage that you caused during an accident. The second part covers any physical injuries that you’ve caused during an at-fault accident, otherwise known as a bodily injury liability.

But there’s more to liability car insurance than that, including different limits and liability options.

Liability Coverage Limits.

Liability Coverage offers different limits. You can find them in your Auto insurance policy.

Property Damage Liability Limit:

This the total amount of money that your insurance company will pay for any property damage you caused during in accident. This limit is set at the time you buy your policy.

Bodily Injury Liability per Injured Person

This establishes the amount of money that your insurance company will pay for every injured person during an accident you caused. Be sure to check your policy.

Bodily Injury Liability per Accident

This one is very important because it sets a cap on the total amount your insurance company will cover for any at-fault accidents resulting in bodily injury. Before deciding on the limit on what your bodily injury liability per accident will be, you might want to take into account the amount needed to cover medical expenses for multiple people.

What will Liability Insurance not Cover?

Liability insurance will typically not cover the damages to your car or any of your medical expenses associated with the accident you caused. However, you might want to ask your insurances broker about other type of coverages that will help you under these circumstances, such as, collision coverage.

Other coverages that can help you with medical expense at the time of an at-fault accidents include personal injury protection. For more information about different types of insurance coverages available, talk to an insurance broker.

Another thing to consider when purchasing your insurance policy is the state requirement for liability insurance. Many states have minimum requirements as to how much Liability insurance your policy must carry. For example, California drivers are legally required to carry a minimum of $15,000 body injury coverage per person, $30,000 body injury coverage per accident, and $5,000 coverage for property damage.  Every state has different requirements, so be sure to do your research.

If you still have other questions or concerns about what type of auto insurance policy to purchase, talk to an insurance broker.