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Liability Car Insurance: Types of Coverage, Limits

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Liability car insurance is something you might have heard about when it comes to cars insurance. It’s a type of insurance that can help you if you’re in a car accident and you’re found to be at fault.

In this article, we’ll explore what liability car insurance is all about, coverage and limits. So, let’s dive in and learn more about this important aspect of car insurance.

What Is Liability Car Insurance?

Liability car insurance is like a safety shield in your car insurance. It provides financial protection if you accidentally hurt someone or damage their stuff while driving. But, it’s important to know that this type of insurance doesn’t cover you or your car. It’s all about taking care of others.

There are two parts to this type of insurance. One part helps with medical bills if you hurt someone, and the other part helps pay for the stuff you damage, like their car or property.

In almost every state, you have to have at least some of this insurance, except for New Hampshire. It’s a rule to make sure everyone is responsible if they cause an accident.

Types of Liability Car Insurance

Car insurance can be a bit confusing, but one important part is called “liability coverage.” This is what helps you when you accidentally hurt someone or damage their things while driving your car. Their is two types of coverage:-

Bodily Injury

The part of car insurance called “bodily injury liability” is there to help the driver who caused the accident. It takes care of things like paying for the injured person’s medical bills, any money they lose because they can’t work, and even the costs for a funeral if it’s really bad.

And, if the accident leads to a lawsuit, this insurance also helps with the legal fees for the person who has this insurance. So, it’s like having someone to support you when things go wrong on the road.

Property Damage

Property damage liability is cover for fixing things after a car accident. It helps pay for the repairs or replacements of other people’s cars if you caused the accident.

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Not just that, if your car damages other stuff like fences, mailboxes, or even buildings, this insurance helps with those costs too. So, it’s there to make sure everything gets fixed up properly after an accident.

Liability Car Insurance Coverage Limits

When you buy liability car insurance, there are limits on how much money it can provide for different things, and these limits depend on the type of coverage you pick when you buy the insurance. These limits include:

Liability Limit for Property Damage

This limit is the maximum amount of coverage for damage done to property. If the costs go above this limit, the person who caused the accident has to pay the extra money from pocket.

Liability Limit for Bodily Injury per Person

The per-person limit is like the most money the insurance company will give to each person hurt in an accident. It’s cover on how much they can get for their injuries from your insurance.

Liability Limit for Bodily Injury per Accident

The liability limit per accident sets a limit on how much money the insurance company will pay for everyone hurt in one accident. It’s like the most they’ll give altogether. So, if the medical bills add up to more than this limit, the person who caused the accident has to pay the extra money. It’s like a financial boundary for all the injuries in one accident.

Requirements for Liability Car Insurance

Each state set their minimum amount of liability coverage a driver must have. For example,

  • One state might say you need at least $25,000 to pay for one person’s injuries.
  • $50,000 for many people’s injuries.
  • $50,000 for someone’s death, and $10,000 for property damage.

But, you can usually get additional coverage than what your state says is the minimum. It’s often a good idea to get more because medical bills can be really expensive.

If you have a lot of valuable things and want extra protection in case you get sued, you can think about getting something called “umbrella insurance.” This can give you even more coverage on both your car and home insurance, sometimes up to $1 million or more. It’s like having an extra big safety net.

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Read | Liability vs. Full Coverage Car Insurance

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