AUTO INSURANCE MYTH
Updated: Jan 6, 2021
LIABILITY INSURANCE COVERAGE THAT MEETS MINIMUM LEGAL REQUIREMENTS OFFERS ADEQUATE PROTECTION.
Fact: Minimum liability limits may not be enough to cover expenses if you accidentally injure someone or damage their property with your car.
Two types of Liability:
Bodily injury liability may help pay for legal fees, medical expenses and lost income compensation for other people if they're injured in an accident you cause with your vehicle. The per-person limit applies to each person involved the accident. The per-accident limit applies to each accident you cause.
Property damage liability may help pay for someone else's belongings (their car, their mailbox or their front porch, for example) if you accidentally damage them with your vehicle.
So say, for example, you cause a serious accident that injures multiple people, and you're found liable to help pay for their medical bills. If you had the bodily injury liability limits in the example above, your insurance would not help cover the injured parties' medical bills beyond $50,000. In other words, if the medical bills exceed $50,000, you'd likely have to pay the rest out of your own pocket.
It's important to think about these types of scenarios when choosing limits for your liability coverage.