Accidents happen and you want to make sure you have appropriate coverage because it can become very expensive. Liability refers specifically to who is at fault. The person who caused the damage is liable to another person because of their actions. If you were at fault for the accident and it resulted in bodily injury to someone else or damages to their property, liability insurance coverage will protect you financially. It will cover any expenses to the injured party, which could include medical costs, damages to their vehicle or any legal and court costs.<\/p>\n
Typically, minimum liability coverage is required by most states for any policy and is comprised of two types: bodily injury and property damage. It covers the damages you are legally responsible for after an accident.<\/p>\n
One other important aspect you need to understand is liability limits. It is usually expressed in three separate numbers, such as $15,000\/$30,000\/$5,000. This refers to the maximum amount your policy will pay in case you need to use your liability coverage.<\/p>\n
For instance, with liability coverage of $15,000\/$30,000\/$5,000, $15,000 would be the maximum amount paid to anyone involved in an accident, but the total for everyone combined would not to exceed $30,000. And if there was property damage involved, the maximum coverage is $5,000. As you might expect, having lower limits will not cover you entirely and will leave you responsible for the excess costs. That is why it is important that you opt for the maximum limits that will fit comfortably within your budget in case you are involved in a more serious accident.<\/p>\n
Liability coverage protects you from damages when you\u2019re at fault, but does not cover damages to you or your property, which is why you also need to have collision and comprehensive coverage. However, understanding this vital part of your policy is one step forward in being fully protected on the road.<\/p>\n