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Auto Insurance Liability Coverage

Liability is the most basic of all auto insurance coverages. A minimum liability coverage is required in all states aside from New Hampshire, South Carolina, Virginia, and Wisconsin. Liability insurance can be set up two different ways: Combined Single Limit or Split Limits.

Combined Single Limit Liability:

Combines property damage and bodily injury coverage under one single limit. Under Combined Single Limit Coverage both damages to another person's car as well as payments for injuries to the driver and passenger of the other car would be paid under this coverage. If the damages exceed the limit on the policy, the policyholder is responsible for the excess.

Split Limits Liability:

Split Limit policies usually look something like this: 100/300/50. The "100" means that the maximum the insurance company will pay for one person injured in an accident is $100,000. "300" means that thte insurance company will pay up to $300,000 for all injuries in one accident. "50" refers to $50,000 as the maximum the insurance company will pay our for property damages in one accident. The actual numbers vary by policy but are always in "bodily injury max for one person/bodily injury for one accident/property damage" form.

Liability insurance does not cover any damages to your own vehicle.


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