Extra insurance for a new car: 3 key coverages
Written by webtechs

What Is Liability Car Insurance?

Auto liability insurance is required in most states. If you are the cause of an accident, you will be liable for it.

What Is Covered?

Policies often contain liability insurance and also helps to pay for someone else’s property damage and their medical expenses.

Bodily Injury Liability Coverage

This helps to cover the medical expenses of the other person in a crash you are liable for.

Property Damage Liability Coverage

This helps to cover the damage to the property of the other person, for example, their car repairs.

Coverage Limits

This will depend on the level of coverage you choose. Every state sets the minimum level of coverage for bodily injury liability as well as property damage liability drivers are under obligation to purchase.

Property Damage Liability Limit

This is the maximum amount that will be paid out under the terms of your policy. including a maximum payout for every individual who was injured in accidents you cause.

Bodily Injury Liability Limit Per Accident

This sets a cap on the amount the insurance provider will pay for all medical expenses from a single accident. This limit may be set at an amount that makes you comfortable as it may be required to be paid to multiple people if they have medical expenses.

The majority of providers bundle property damage and bodily injury together. Examples would include:

  • 25/50/10 ($25,000 BI per person limit, $50,000 BI per accident limit, $10,000 property damage limit)
  • 100/300/50 ($100,000 BI per person limit, $300,000 BI per accident limit, $50,000 property damage limit)

Your coverage limits depend on the packages offered by your insurer. You may not have standalone options regarding these.

How Much Should be Purchased?

Think of this example:

You are at fault for a crash that injured three people in another car. Your bodily injury liability limit per person is $50,000 and your bodily injury limit per accident is $100,000. If Person 1’s medical bills total $40,000, Person 2’s cost $30,000 and Person 3’s cost $25,000, you’re likely covered. Each person’s bills were under $50,000 (your bodily injury limit per person), and the total cost of injuries is $95,000, which is lower than your $100,000 bodily injury limit for a single accident.

Auto Insurance Quotes

From offering liability protection to you and your family to helping you get reimbursed for personal property damage, auto insurance provides many types of coverage. Learn more about Auto Insurance Coverage or get a free auto insurance quote from Klimes Insurance today.

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