Liability Insurance

Liability coverage is required in most states and is the foundation of any car insurance policy. Should you be in an accident and found to be at fault, your liability coverage would pay for the bodily injury and property damage expenses you cause to others, plus any legal fees should you wind up being sued.

Liability coverage limits are shown in a series of three numbers addressing bodily injury for one person, bodily injury for multiple people and property damage. The numbers 20/40/10, for example, would describe coverage limits of $20,000 for bodily injury sustained by one person injured in an accident, $40,000 for total bodily injuries sustained when more than one person is injured in one accident, and $10,000 for total property-damage resulting from one accident. If you do nothing else when comparing policies, make sure all the policies show the same three coverage limit numbers.