This may be the most
important type of auto insurance coverage to carry.
Different states have different auto
insurance coverage laws, so be sure to check with the DMV or your
auto insurance company about specific state requires. Every state
in the nation, except for New Hampshire and Wisconsin, requires that
you have liability insurance, and that mandatory coverage varies
according to state.
Bodily injury liability: If the driver is the responsible
for an accident, the `liability` insurance coverage offers the
payment for the medicinal, therapy, and, when necessary, memorial
service bills of the driver's passengers, the other side, his or her
passengers, and also all pedestrians injured.
Liability coverage is offered for bodily injury (BI) or property
damage (PD) for which the insured driver is deemed responsible.
Bodily injury liability coverage is also usually split into a
maximum payment per person and a maximum payment per accident.
Bodily Injury Liability coverage pays for serious and permanent
injury or death to others when you cause a crash involving your
automobile. This coverage also provides you with legal defense in
the event you are sued by the injured party.
This coverage pays for damages you or
members of your family cause (and are liable for) to other people's
property in a crash involving a motor vehicle. Many auto policies
stop at a maximum of $300,000 or $500,000 per accident for Liability
coverage. The amount of Liability coverage you carry should be high
enough to protect your assets in the event of an accident. People
with a home and other assets should buy coverage of at least
$100,000 per person and $300,000 per accident. If you have a
million-dollar house, you could lose it in a lawsuit if your
insurance coverage is insufficient. You can get additional coverage
with a Personal Umbrella or Personal.
Basically insurance companies will usually advise to consumers to
carry high or the highest liability limits when they own a home or
have valuable assets. In short, when you're comparing the prices
of vehicle insurance punctuate, you won't be comparing like for
like. The biggest mistake is being underinsured on bodily injury
liability coverage and over-insured on collision and comprehensive
Unlike a personal auto policy, this coverage will not protect you or
your employee. As with Hired Auto coverage, this coverage protects
the company only and supplements the driver's personal auto
Besides various forms of liability insurance, there is collision and
comprehensive auto insurance coverage to consider.
Each state has their own liability requirements. Please note the
state liability requirements below: