Liability auto insurance is designed to protect you. Your liability coverage will cover you for bodily injury and property damage if you or the driver of your car are at fault. It will cover any one in your family using your vehicle with your permission. Let’s say you have a split limits policy of 100/300/50. Exactly what this means is your policy would pay up to $100,000 to any one person that is injured, up to $300,000 for all persons combined injured in one single accident. Using this example, there would be a limit of $50,000 in property damage liability for each accident.
Now, to understand more about the different types of policies, let’s look at the additional kinds of insurance that are available. Collision coverage covers damage to your vehicle caused by another car, or even an object like a tree. This coverage pays the lesser of the average cost of repair to your vehicle no matter who’s at fault.
There’s one other area of insurance called comprehensive that covers losses caused by a break in, hitting a deer, flood, theft, fire, storm, etc. This type of insurance protects you regardless of who is at fault.
Medical payments, coverage is extra coverage that pays for medical and funeral expenses due to an auto accident, no matter who is at fault.
Our last area of coverage is uninsured/underinsured motorist coverage. This coverage, as the name implies, covers you or your family should you be hit by a driver who is at-fault and carries no insurance coverage. The same applies if the at-fault motorist does not carry enough coverage to cover your actual losses. This type of coverage does not include property damage protection, but will cover the difference between the other driver’s liability limits and your underinsured motorist policy limits.
I hope this helps. If you can afford the extra costs, I would certainly suggest that you buy the extra coverage these policies provide. Thanks for contacting us with your question.