Categories
auto

Liability Insurance: How To Stay Protected

Auto liability insurance is a type of car insurance coverage that’s required by law in most states. If you cause a car accident — in other words, if you are liable for the accident — liability coverage helps pay for the other person’s expenses.

Auto liability coverage comes in two forms: bodily injury liability coverage and property damage liability coverage. Drivers in most states must have both types of coverage.

eli global insurance addiction treatment insurance coverage hpso general liability insurance geico auto insurance orlando florida hpso liability insurance geico car insurance moving different state the hartford auto insurance company hartford insurance auto insurance hpso insurance hpso personal liability insurance hpso malpractice insurance hpso liability insurance physical therapy hsop insurance can you pay geico car insurance with a credit card homeowners insurance mount pleasant sc hpso medical malpractice insurance geico insurance schaumburg usaa auto insurance lienholder verification usaa car insurance grace period usaa car insurance speeding ticket hartford auto insurance hartford car insurance cigna dental insurance provider phone number lawyer for car accident no insurance american family insurance agency owner salary car insurance hartford ct hpso business insurance harford general insurance agency insurance auto insurance quote who owns usaa insurance company average insurance agency owner salary geico motorcycle insurance quote geico auto insurance colorado geico insurance san marcos tx insurance agent jobs las vegas geico insurance agent lexington ky geico bike insurance quote can you borrow against term life insurance policy auto insurance quotes modesto ca geico insurance newport news va a career in insurance hawaii auto insurance quotes ama insurance provider geico insurance denton tx hagar insurance crystal river fl geico car insurance reddit logan branch insurance geico motorcycle insurance nationwide life and annuity insurance greg lindberg insurance companies toronto car insurance quote geico car insurance boston ma massachussetts car insurance list of vehicle insurance companies geico auto insurance orlando fl usaa insurance b2b nationwide life and annuity insurance company geico motorcycle insurance quote online usaa insurance agent salary can an ex spouse get usaa insurance usaa insurance ceo insurance for small business nj should i become an insurance agent geico car insurance meme do you have to be military to have usaa insurance low cost auto insurance nevada usaa insurance complaints usaa insurance grace period can veterans get usaa insurance florida homeowners insurance cancellation law usaa insurance adjuster salary can civilians get usaa insurance aspen specialty insurance co usaa insurance wikipedia geico motorcycle insurance number usaa insurance mortgagee clause update brokered cds fdic insured usaa insurance dividend 2019 history of usaa insurance call geico car insurance buy auto insurance online with checking account is usaa insurance subsidized by the government usaa insurance headquarters nationwide life and annuity insurance company phone number who owns usaa insurance geico car insurance quote geico quote online car insurance usaa insurance driving someone else's car hudson specialty insurance company naic when did usaa insurance start can i add my fiance to my usaa insurance can my sister get usaa insurance geico motorcycle insurance reviews usaa insurance without military toll free number for geico car insurance homeowners insurance dade city fl usaa insurance increase after speeding ticket call buckeye health insurance geico car insurance include towing usaa insurance 9800 fredericksburg road usaa insurance b2b portal pay my usaa insurance bill usaa insurance commercial rivera family call geico auto insurance 1 800 number is geico motorcycle insurance good is gammacore covered by insurance evanston insurance company am best rating how to buy geico car insurance get a insurance quote from geico get a free insurance quote from geico geico insurance plano texas geico auto insurance quote order contact lenses vsp insurance car insurance that does not use credit score auto insurance comparison michigan buy out insurance burlington insurance company naic nautilus insurance company naic geico auto insurance arizona geico quote motorcycle insurance does geico car insurance have a grace period geico quote for insurance car accident insurance claim lawyer will usaa insure a salvage title vehicle geico insurance agent austin lapsed car insurance policy auto insurance quote compare rates geico insurance agent virginia beach usaa insurance provider portal geico motorcycle insurance cost usaa insurance mortgagee change how late can i pay usaa insurance home state insurance mo does a speeding ticket affect your insurance usaa one day event insurance wedding usaa insurance stands for geico auto insurance maryland tco insurance apply for geico car insurance ok google call geico car insurance good auto insurance rates call geico auto insurance wisconsin collaborative insurance company estimate full coverage auto insurance wyoming auto insurance quotes arch insurance company am best rating are insurance companies regulated simply business insurance geico car insurance ct midwest insurance company am best rating freestone insurance company homeowners insurance palm coast fl call geico

WHAT IS COVERED BY LIABILITY INSURANCE?

Many types of insurance policies include liability insurance. Generally speaking, it helps pay to repair another person’s property or for their medical bills if the policyholder is found responsible for causing the damage or injuries.

Auto liability insurance helps cover another person’s medical expenses and property damage via these two types of coverage:

Bodily injury liability coverage (sometimes abbreviated as “BI”)

 

  • If you’re at fault for an accident that injures another person, bodily injury liability coverage helps pay for their medical expenses. For instance, this coverage can help you avoid paying out of your own pocket for the injured person’s X-rays and treatment.

 

Property damage liability coverage (sometimes abbreviated as “PD”)

 

  • If you cause an accident that damages someone else’s property (their car, for example), property damage liability coverage helps pay for repairs. For example, if you rear-end another car, this coverage can help prevent you from paying out of pocket to repair the other driver’s vehicle.

 

 

LIABILITY INSURANCE COVERAGE LIMITS

The amount your insurer will pay for a covered liability insurance claim depends on the coverage limits you choose. Each state sets minimum coverage limits for bodily injury liability and property damage liability that drivers must purchase, but you may decide to buy additional coverage. You may see three liability coverage limits on your car insurance policy:

Property damage liability limit.

 

  • This is the maximum amount your insurer would pay to repair damage you cause to another party’s property. The maximum payout would not exceed the limit you’ve set.

 

Bodily injury liability limit per person.

 

  • This establishes a maximum payout for each individual who is injured in an accident that you cause.

 

Bodily injury liability limit per accident.

 

  • This sets a cap on the total amount that your insurance provider will pay out for all medical expenses other people incur from a single accident you cause. It’s important to set this limit at an amount that makes you comfortable, as it may be needed to help pay for the medical expenses incurred by multiple people.

 

Most insurers package bodily injury and property damage limits together. For example, you may be able to purchase auto liability coverage with limits like the following:

 

  • 25/50/10 ($25,000 BI per person limit, $50,000 BI per accident limit, $10,000 property damage limit)
    or
  • 100/300/50 ($100,000 BI per person limit, $300,000 BI per accident limit, $50,000 property damage limit)

 

Your coverage limits will depend on the packages your insurer offers — in other words, you may not be able to choose standalone limits for bodily injury or property damage coverage.

HOW MUCH DOES LIABILITY INSURANCE COST?

The amount you’ll pay for liability insurance is based on a number of factors, including how much coverage you purchase. The higher your coverage limit, the more you’ll likely pay for liability insurance. Your insurance agent can tell you how much your coverage will cost if you adjust your limit.

HOW MUCH LIABILITY INSURANCE SHOULD YOU BUY?

Any costs that exceed your liability coverage limits are your responsibility — in other words, you’d have to pay them out of your own pocket. That’s why it may be a good idea to increase your auto liability limits above the state’s minimum requirements by purchasing more coverage.

Consider the following: You are at fault for a crash that injured three people in another car. Your bodily injury liability limit per person is $50,000 and your bodily injury limit per accident is $100,000. If Person 1’s medical bills total $40,000, Person 2’s cost $30,000 and Person 3’s cost $25,000, you’re likely covered. Each person’s bills were under $50,000 (your bodily injury limit per person), and the total cost of injuries is $95,000, which is lower than your $100,000 bodily injury limit for a single accident.

But suppose all three people had $50,000 in medical bills, totaling $150,000. In that case, your bodily injury liability coverage would pay $100,000 toward those bills, and you may need to cover the remaining $50,000 yourself.

WHAT DOESN’T LIABILITY INSURANCE COVER?

Liability coverage typically doesn’t pay to repair damage to your own car after an accident — collision coverage helps with that. It also doesn’t pay to repair damage caused by other factors, such as hail, which may be paid by comprehensive coverage.

Liability coverage also does not extend to costs associated with your own injuries after an accident you cause. If you want this type of coverage, you may want to consider medical payments coverage. Your insurance agent can help answer questions about auto liability insurance or your state’s coverage requirements.

Talk to a local insurance agent to discuss your options and choose appropriate liability coverage limits for your situation.

QUIZ: AUTO LIABILITY INSURANCE

Auto liability coverage helps pay for (select all that apply):
Your medical bills
Repairs to your car
Someone else’s medical bills
Damage to someone else’s property
Vehicle maintenance
Your legal costs

Leave a Reply

Your email address will not be published. Required fields are marked *