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The Curious Bag
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Liability auto insurance coverage is defined by your state law requirements for minimum coverage. Two types of coverage are generally discussed when obtaining liability coverage, bodily injury liability and property damage liability. In addition to the coverage in itself, your state may also have minimum requirements for the dollar amount of coverage you must carry for each liability area.
Bodily Injury
Bodily injury liability is coverage that also has two types of coverage within its name. This type of coverage pays for medical expenses, funeral expenses, attorney fees and lost wages due to an auto accident. The first set of bodily injury limits is the amount of coverage per person involved in the accident. The second set of limits is the total amount the insurance policy will pay as a whole for the entire claim.
Property Damage
Property damage liability is designed to pay for property damage as the result of an auto accident. This type of coverage may also help offset the expenses for an attorney and settlement payout if you were to be sued as a direct result of your accident.
State Law
The previous two types of coverage are the two types that are generally required by law. However, your state may require you to carry other coverage such as underinsured or uninsured motorist coverage. Your insurance agent will be able to explain your state law minimums to ensure that you receive all the coverage you are required by law to hold.
Additional Options
Additional insurance options are available to all insurance policy holders. These additional options include rental reimbursement, towing coverage, labor insurance, vehicle customizations and more.
Cost
The more coverage options you choose, the more the direct cost will be to you. In addition, the amount of your coverage limits will increase your insurance premiums if you choose to hold more coverage than required by state law.
Source:
Allstate.com: Liability Coverage
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