Vehicle liability insurance is a crucial aspect of owning and operating a vehicle. Understanding the various coverage options available can help you make informed decisions when it comes to protecting yourself and your assets in the event of an accident. This article aims to demystify vehicle liability insurance by breaking down the different coverage options and explaining what each type of coverage entails.
Types of Vehicle Liability Insurance
Bodily Injury Liability
Bodily injury liability coverage helps pay for another person's medical expenses if you are found at fault in an accident. This coverage can also provide compensation for lost wages, pain and suffering, and legal fees in case the injured party decides to sue you.
- Covers medical expenses of the other party
- Compensates for lost wages
- Helps with legal fees in case of a lawsuit Refer: https://lioninsurance.us/
Property Damage Liability
Property damage liability coverage helps pay for repairs or replacement of another person's property that you damage in an accident. This can include vehicles, buildings, or other structures that are damaged as a result of the accident.
- Covers repair or replacement of damaged property
- Includes vehicles, buildings, and other structures
Understanding Coverage Limits
When purchasing liability insurance, you will have to choose coverage limits for bodily injury and property damage liability. Coverage limits represent the maximum amount your insurance company will pay in the event of a claim. It is important to select coverage limits that adequately protect your assets and financial well-being.
Split Limits vs. Combined Single Limit
There are two main types of coverage limits for liability insurance:
- Split Limits: Split limits separate the coverage for bodily injury and property damage. For example, a policy with split limits of 50/100/50 means there is $50,000 in coverage per person for bodily injury, $100,000 total coverage per accident for bodily injury, and $50,000 for property damage.
- Combined Single Limit: A combined single limit combines the coverage for bodily injury and property damage into one total amount. For example, a policy with a $300,000 CSL would cover both bodily injury and property damage claims up to $300,000 total.
