If you cause harm to another person or their property, it may help cover the costs.
In the event of an accident, your car being stolen or vandalized, or a natural catastrophe destroying your automobile, auto insurance will cover the costs associated with repairing or replacing your vehicle. If you are found responsible for an accident that causes injury or property damage to another individual, your personal liability coverage will protect you financially. All states, except New Hampshire, mandate certain liability coverage for insured vehicles.
STUDY QUESTIONS
If you cause a vehicle accident and someone else is hurt or their property is damaged. As a result, you will be financially protected by personal liability insurance.
Liability insurance is a standard component of automobile insurance and is mandated by almost every state.
Also, states mandate minimal liability coverage, but purchasing more is often recommended.
What Exactly Is Individual Liability Coverage?
- Several different kinds of protection may be included in an auto insurance policy.
- Personal injury responsibility
- Responsibility for physical harm
- Safety from bodily harm (in certain states)
- Accident protection
- All bases are covered
- Protecting you against drivers who don't have enough insurance
The liability coverage of the insurance is comprised of the first two things on the list: bodily injury and property damage.
If you cause an accident and someone else is hurt, as a result, bodily injury liability insurance will pay for their medical expenses. If you rear-end someone with your automobile and they get neck and back injuries, your bodily injury liability coverage may reimburse them for part or all of their medical expenses (up to your policy's limitations, of course) if you cause the accident. 2
If you cause an accident and someone else's property is damaged. As a result, your PD coverage will pay for the repairs or replacement costs. Other people's cars and even fences and buildings may be covered under this policy. Repair expenses are covered, in part or whole, by this kind of liability insurance.
Insurance Coverage Limitations for Individuals
Every state requires motorists to carry some personal liability insurance, except New Hampshire, which has no such requirement. There are typically three types of liability limitations specified on insurance. However, they might vary from state to state.
- Individual Limit on Compensation for Physical Harm
- Accidental bodily harm liability limits
- Compensation limits for property damage
- Individual Limit on Compensation for Physical Harm
If you are at fault in an auto accident, your insurance company will pay up to your bodily injury liability limit per person for the injured party's medical bills. For instance, if an accident causes physical harm to another individual, that person may be compensated for up to $25,000.
Accidental bodily harm liability limits
The highest amount your insurance carrier will pay for medical bills stemming from a single accident is the bodily injury liability limit per accident. For the sake of argument, let's assume that your bodily injury liability cap per accident is $50,000. No matter how many individuals were hurt in the accident, your coverage will only pay that much in medical costs.
Compensation limits for property damage
If you are found to be at fault in an accident and property damage occurs, your insurer will pay up to your property damage liability limit. Shortening these figures when a policy includes all three liability coverage forms is common practice. For instance, "100/300/50" would indicate that your policy's limits for physical injury per person are $100,000, the accident limit is $300,000, and the property damage maximum is $50,000. 3
