What Liability Insurance Covers
Auto liability insurance generally helps pay for covered injuries or property damage you cause to others in an accident, up to the limits shown on your policy and subject to its terms.
State Minimums Are a Starting Point
States set minimum liability requirements, but minimum limits may be lower than the potential cost of a serious accident. When comparing policies, look at both the legal minimum and the amount of financial protection you want.
Understand Split Limits
Many policies display bodily injury limits per person and per accident, plus a separate property damage limit. Make sure you compare the same limits across quotes so a lower premium is not simply reflecting less coverage.
Factors to Consider
- Your assets and income exposure.
- The cost of vehicles and medical care in your area.
- Whether an umbrella policy requires underlying auto limits.
- Your comfort with the risk of paying uncovered amounts yourself.
Questions to Ask
- What liability limits are included in this quote?
- How much would higher limits change the premium?
- Are defense costs handled inside or outside the policy limit?
- Would an umbrella policy require higher underlying limits?