#what is liability car insurance
Car Insurance: Liability Coverage
Liability insurance protects you against the claims of other drivers for their injuries or damage to their vehicles in the event that you cause an accident, up to the limits of liability in your policy. Most states require that drivers have liability insurance up to certain minimum limits, and SafeAuto has specialized in helping drivers meet those requirements for over 20 years.
In many states, if your car insurance policy has only liability coverage and you cause an accident, costs related to your injuries or damage to your car will not be covered.
What does liability coverage on my car insurance policy cover?
Per-person bodily injury limit. The first number is the maximum amount that your policy will pay for injury to any one person resulting from a covered accident.
Per-accident bodily injury limit. The second number is the maximum amount that your policy will pay for all injuries sustained by two or more people resulting from a covered accident. It is commonly twice or three times the amount of the per-person bodily injury limit. The higher the amount, the more coverage your policy affords.
Property damage limit. The third number is the maximum amount that your policy will pay for all property damaged (including vehicles) as a result of a covered accident.
What is covered under the bodily injury limit?
In most states, bodily injury coverage pays for claims related to injuries to other persons vehicles involved in an accident that you caused. It covers the damages resulting from the bodily injury sustained, typically amounting to medical expenses, lost wages, pain and suffering and related items.
For example: You cause an accident with another driver who has three passengers in her car. If you have liability insurance, you are covered against any bodily injury claims filed by the driver or her three passengers up to the limits of your policy. So if your per person bodily injury limit is $25,000 and your per accident bodily injury limit is $50,000, your policy will pay at most $25,000 to cover the bodily injury claims of any one of the four people in the struck vehicle but only up to $50,000 in total for all bodily injury claims resulting from the accident.
What is covered under the property damage limit?
If you cause an accident, your liability insurance will cover property damage claims resulting from the accident up to the limits of your policy. Property damage includes damage to the other vehicle, as well as damage to other property such as buildings and telephone poles that might be damaged in the accident.
Example: Suppose you rear-end the driver in front of you at a stoplight. No one is hurt but there is damage to both cars. If you have a car insurance policy with liability limits of $25,000/$50,000/$25,000, your insurance company will pay up to $25,000 for damages to the other driver s car if a claim is filed. If the damage is more than $25,000, you will be personally liable for paying the rest.