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Liability Insurance.
Liability insurance is designed to help protect you and your assets if you cause injury to others or their assets with your vehicle. Bodily injury liability will protect you in the event you are found to be at fault for an accident in which someone is hurt or killed. Property damage liability will cover the damage caused by your vehicle to someone else’s property.
In the event you are found to be at fault for an accident, you may also be held liable for property damage, hospital and medical payments, rehabilitative care, lost income and even the pain and suffering of the injured person. You may be held liable for the full amount of the damage. Therefore, if the damage exceeds your liability insurance, you may be held liable for the rest of the value to the damaged property or persons.
Your liability insurance coverage is typically described as a series of three numbers, known as your “split limis”. If your coverage reads 40,000/80,000/20,000, the insurance company will pay up to $40,000 in bodily injuries per person per accident. The insurance company will pay a maximum of $100,000 per accident regardless of the number of people involved. And it will pay a maximum of $20,000 in property damages. The first and last numbers – the Bodily Injury and Property Damage Liability figures, are often combined into a single number, for example an $80,000 Combined Single Limit (CSL).
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