Minimum liability auto insurance is required by most states.
In case of an accident the liability coverage of the driver
who is at fault will pay for bodily
injury to a person or persons who are hurt and also for
property
damage. Most states are tort
states; this means that the driver who causes an accident
is held responsible and liable for the costs involved.
Typically minimum
liability is stated as XX/YY/XX such as 50/100/25. In
this example, 50 equals fifty thousand dollars coverage for
bodily injury to one person in one accident, 100 equal one
hundred thousand dollars total for all persons injured in
one accident and 25 equals twenty-five thousand dollars for
property damage.
This commonly used term 'liability insurance' really is a
combination of two different policies: liability for bodily
injury and liability for property damage.
Many experts recommend much more coverage than the minimum
such as $100,000 for bodily injury to one person and $300,000
for all persons injured in an accident. They recommend this
because many accidents are much more costly than the minimum
and any costs over the minimum must be paid by the driver.
Other Auto Insurance Terms & Definitions
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