Liability Auto Insurance

With liability auto insurance you will be covered for both bodily injury coverage and property damage coverage. Bodily injury coverage is when you hurt yourself or someone else or if you are responsible for a death caused by your vehicle. It also includes things like lost wages, medical bills, and pain and suffering. Property damage coverage will cover you if your vehicle were to damage someone else’s property. So it will cover the cost of repairing or replacing property that you destroyed in an accident. Not everyone will have the same insurance minimum because it all comes down to where you live.

You will definitely want to keep in mind that if you only have liability auto insurance, and you cause a serious accident then you may not be adequately covered. Also if you were to be sued and your liability auto insurance does not pay all of the damages you caused then your personal finances are on the hook. How much you have to pay out of your own pocket is what shocks people who just have liability coverage. This is because your liability coverage does not cover everything, you may have to liquidate property, savings, and any other type of assets you may have including future earnings. This is why many people buy more than just liability auto insurance.

Liability auto insurance is the one type of auto insurance that most states require you to have. You will want to keep in mind though that all states are different when it comes to how much the minimum requirement for liability insurance coverage is. If you are leasing a vehicle then you will more than likely have to carry a certain amount of liability auto insurance as a minimum. If you are financing your vehicle you may be required to have liability auto insurance.

Now to help you with what is called liability lingo that looks like 20/40/10. What this means is that you are covered for up to $20,000 in bodily injury coverage per person, then $40,000 in bodily injury coverage per accident, and $10,000 in property damage coverage per accident. These three numbers are sometimes referred to as split limits of liability insurance.