Known as one of the most basic types of auto insurance coverage, liability covers damages to another person resulting from an accident that you cause. This is also one of the few coverage options that’s mandatory in every state. Despite this, the minimum limits of coverage vary in location. Be sure to know what coverage suits you and what is required.
Two Types of Liability Coverage
Property damage liability will help you pay for damages to a person’s property in an accident that you cause. Bodily injury liability aids the costs associated with a person’s injuries resulting from an accident that was caused by you.
There will be limits set to secure a maximum that your insurer would pay out on each occurrence. There will be separate limits for property damage liability, bodily injury liability for each person injured, and bodily injury liability limit per accident. You may want to purchase a policy with higher limits so that you’re better protected.
Typically, liability coverage doesn’t pay for damage to your own car or costs associated with your own injuries from an accident that you are responsible for.