Liability Auto Insurance

Liability insurance is the minimum required in most states. It protects you against injury and property damage expenses of third parties involved in an automobile accident for which you are found responsible. The coverage also usually pays for legal defense and court costs, if needed.

The liability insurance is made up of two different policies:

• bodily injury liability, which covers lost wages and medical bills, and
• property damage liability that pays for the replacement or repair of anything that was damaged.

Auto insurance policies are described by three numbers, called split limits. The first number limits the amount of medical payments to a single person injured in an accident, the second puts a cap on the total amount paid out to all injured persons, and the third determines the max property damage covered.

The minimum liability insurance amount you are required to pay varies from state to state. You should check with your state's Insurance Department to determine the exact amount. The most common minimum split limits are 50/100/25:

• $50,000 for bodily injury to a single person;
• $100,000 for bodily injury to all injured persons;
• $25,000 for property damages.

We recommend that you go for higher bodily injury amounts. If you cause a major accident, your current or potential coverage may not be sufficient. The average bodily injury liability limits are 100 for single person injury and 300 for all persons injured.

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