Liability Insurance

Liability coverage is required by most states. This coverage type is, essentially, the foundation of your car insurance policy. Should you be involved in an accident where you are determined to be at fault, your liability insurance covers both the physical injuries to others and any property damage that you caused to others as a result of the accident. It also covers any legal fees should you be involved in a lawsuit because of the incident.

Liability insurance does have limits depending on how much coverage you want in your policy. Liability coverage limits are defined by a series of three numbers, such as “20/40/10”. In this example, the numbers represent coverage limits of $20,000 for bodily injury – that is damage sustained by a single person injured in an accident; $40,000 total for all bodily injuries sustained – that is when more than one person is injured in a single accident, the limit for all bodily injuries for all others who were injured is $40,000; and $10,000 maximum for property damage resulting from a single accident.

When you are shopping for rates and comparing different carriers, make certain all the policies being priced have the same three numbers in the three categories remember that each state has different minimum liability limit requirements. This way you can make sure that you are getting the best coverage for the lowest price and best company.