A liability insurance policy pays for damages or injuries you might cause if you are at fault for an accident. Your insurance pays for injuries or death caused by your vehicle, and it also helps with expenses if someone sues you for an accident you caused. Most states require the purchase of liability insurance for all vehicles.
Types of Auto Liability
There are two main kinds of auto liability for personal vehicles. Bodily injury coverage pays for medical treatments and lost wages if you injure someone in an accident. Your property damage liability coverage covers repairs and replacements for the other vehicle.
Limits of Auto Liability
Auto liability, such as from a liability insurance Newark DE company, is often written in terms of the limit of coverage the policy provides for each type of liability insurance. Bodily injury insurance is often split to allow a certain limit amount to payments per individual person and then per accident. If a coverage limit is written as 25/50/10, this means that the policy offers $25,000 worth of bodily injury per person, $50,000 worth of bodily injury per accident, and $10,000 property damage coverage.
Considerations of Auto Liability
When you buy insurance in a state that requires liability insurance, you’ll be informed of the required limits of coverage. When you want umbrella insurance to cover both your vehicle and homeowners policies, you may need to purchase liability up to a certain limit amount.
If your liability coverage is not enough to pay for injuries or damage in an accident, then you will have to pay the rest from your own pocket. An adequate insurance policy can help ensure you are covered. Speak with an insurance agent to make sure you have enough coverage to protect yourself and your assets in case of an accident.