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