Liability Damage
Bodily Injury Liability Insurance protects you against claims of other people who are injured when you are at fault. It does not protect you against damage to you personally or your car. It protects you from their damages such as medical expenses, lost wages, and pain and suffering. You will also be covered for damages if the accident was caused by a member of your family living with you or a person using your car with your consent. Bodily injury liability insurance is purchased with specific benefit limits. These limits address how much money the insurance company is committed to pay for any one victim in an accident and limits the amount they must pay for multiple victims. Most states require you to purchase minimum amounts of bodily injury coverage. If you raise your coverage your premiums will increase because the insurance company will be assuming a higher risk.
Property Damage Liability Insurance pays for any damage you cause to the property of others. It could be a dented fender, broken window, or damaged property. The insurance company will pay the claim whether you were driving your car or whether it was driven by another person with your consent. Property damage liability insurance is purchased with specific benefit limits. Most states require you to purchase minimum amounts of property damage liability insurance.
Uninsured motorists coverage is protection for you. This coverage pays you if you are injured by a driver who does not have auto insurance or by a hit-and-run driver. This coverage takes the place of the insurance the other driver should have purchased but did not, or covers the amount the other driver's insurance does not cover. Uninsured motorists coverage is purchased with specific benefit limits. Most states require you to purchase minimum amounts of coverage. This coverage does not protect the other driver and may not cover damage to your vehicle.
This website may contain concepts that have legal, accounting and tax implications. It is not intended to provide legal, accounting or tax advise. You may wish to consult a competent attorney, tax advisor or accountant. It is intended for informational purposes only.