Auto liability insurance coverage 101
Liability insurance is usually comprised of 3 basic components:
- Bodily injury per person
- Bodily injury per accident
- Property damage
Each area has an upper-limit that your insurance provider is legally responsible to pay. For example, an auto liability insurance policy may cover up to $25,000 per person, with a per accident upper-limit of $50,000 in bodily injury protection. The bodily injury coverage will pay for medical expenses that result from an accident. Check with your local bureau of motor vehicles to find out how much coverage is required in your state.
The third component -- property damage -- covers damage to vehicles or property; it also has a coverage upper-limit. Your specific auto liability insurance coverage will vary depending on the state you live in, the make and model of your vehicle, and other factors.