The Importance of Liability Coverage
Having the proper liability coverage on your vehicle is an important part of driving legally. It protects you and other drivers from the financial burden of being held responsible for an auto accident, even if you were at fault. Even a minor collision can result in thousands of dollars in damage, and liability coverage requirements is not unlimited.
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Liability insurance protects you in the event of an accident, and is split into two sections: bodily injury liability and property damage liability. Bodily injury liability covers the costs of a third party’s medical expenses and lost wages if you cause a wreck. Property damage liability protects the property of another driver.
Liability coverage is essential for every automobile owner. The law requires that every automobile owner have liability coverage to pay claims in the event of an accident. While the minimum liability limits required by law are $25,000 per person and $50,000 per accident, most insurers will offer higher limits. Liability coverage also includes uninsured and underinsured motorist coverage.
In addition to bodily injury liability coverage, insurance companies must also offer uninsured motorist coverage (UM/UIM). Underinsured motorist coverage will pay for injuries to you and your passengers if the other driver is uninsured. This coverage is equivalent to the minimum required by law, and it is possible to purchase additional coverage that doubles the UM/UIM limits.