Liability Insurance

Liability insurance is the most important type of auto insurance and is in fact a requirement in most state auto insurance laws. The low down is that liability car insurance will protect you from the damage caused to other individuals as well as property if you have a car crash.

Liability insurance actually consists of two policies, property damage liability and bodily injury liability. They are fairly clear cut in that the former protects you from damage to another vehicle or other property and the latter covers you if you cause someone personal injury.

All states require you to have a modicum of auto liability insurance before you can drive legally and, although many people like to save money here by getting the lowest level of coverage available, it may serve you in the long run should you have an accident.

The standard liability insurance policy will be quoted with three numbers, something like this: 50/100/25. Referred to as split limits of liability insurance, these numbers show the level of auto liability insurance you will be covered to.

Thus:
• $50,000 coverage for bodily injury to another person
• $100,000 for bodily injuries caused to all parties
• $25,000 property damage coverage

In the auto insurance world, it certainly pays to shop around and you can even find big discounts for liability insurance with some of the major auto insurance carriers. There are numerous reputable auto insurance firms with websites, meaning you can check out many sites quickly to find the best deal for you through an online application form.