Liability Insurance

When you are searching for auto insurance, one of the most important types of coverage to consider is liability coverage. Without this coverage, you are at risk of being sued if you cause an accident that results in physical injury or damage to another car, driver, or other personal property.

There are two distinct elements of liability coverage. The first is bodily injury liability - this element pays for the medical and rehabilitation expenses of another driver, as well as his or her passengers, that result from an accident you cause. Since even a minor accident can result in hundreds of thousands of dollars in medical expenses, it is critical that you carry sufficient bodily injury liability coverage to pay for these costs.

The second element is property damage liability coverage. This pays for damage to another driver's automobile, as well as personal property carried in the vehicle. If the other driver's car can be repaired, this coverage will pay for the repair costs; if it is considered a total loss, it will pay for the replacement of the vehicle.

Most states require drivers to carry a certain amount of bodily injury and property damage liability insurance; however, these minimum limits are usually quite low. For example, Ohio requires drivers to carry bodily injury limits of $12,500 per person, and $25,000 per accident, and property damage limits of just $7,500.

While these liability insurance limits will make you legal to drive, they are usually not enough to protect you against financial ruin. Medical costs can run in the tens of thousands of dollars if just one person is injured in an accident; if more than one person is injured, these costs can easily be $100,000 or more. Likewise, the cost to replace a late model vehicle can be anywhere from $15,000 to $100,000, depending on the make and model.

For this reason, it is important to purchase the highest liability insurance limits you can afford. If your liability limits are not sufficient to pay for the other driver's injuries and property damage, the driver may sue you for the difference. Higher limits can be purchased at minimal cost, so it is well worth the extra expense to make sure you and your family are protected.