Auto Insurance Liability Levels Set by States

The amount of auto insurance liability protection required by law will vary, depending on the state. In most regions, drivers must have at least some level of third party coverage in place. This protection is used to pay for injuries and damages incurred by the occupants of the other car in a motor vehicle accident.

Bodily injury liability insurance coverage pays for medical bills and rehabilitation expenses incurred as the result of an accident. It may also provide compensation for economic losses stemming from the accident, as well as pain and suffering. When insurance companies are indicating policy limits for this type of protection, they use two numbers. The policy will have a set limit for the injuries and damages claimed by a single accident victim and a higher one for the injuries and damages claimed by two or more people injured in the same incident.

Property damage liability protection pays for repairs to the other driver’s vehicle following an accident. It also pays for repairs to public property damaged or destroyed in the accident. Public property includes buildings, sheds, fences, fire hydrants, sign posts, mail boxes, light stands, etc. This type of insurance does not protect the other driver’s personal property in the vehicle; his or her homeowners’ insurance would cover it instead.

Consumers should choose their level of auto insurance liability protection carefully. Limiting this protection to the minimum required by law may not be high enough to pay for damages inflicted in a serious accident.