In summary, liability insurance protects an individual against the cost of being sued should his or her negligence, while driving, cause injury to someone else.  Negligence can be defined as driving outside the standard care required while operating a car.  In order to be held liable, there must be actual harm.

There are two parts to liability coverage:

•    Bodily Injury (to others)

•    Property Damage (to others)

BODILY INJURY

Should an individual driving cause injury or death of another, that individual would be responsible for monetary damages as a result of the accident. 

Including:

• Medical Payments

• Lost Wages

• Pain and Suffering

• Loss of Consortium

Usually bodily injury liability coverage will appear in the following format:

15/30

The first figure is the total bodily injury coverage in thousands per person.  The second figure is the total bodily injury coverage per thousands per accident.

PROPERTY DAMAGE

This portion of liability coverage pays for damages to someone else's property caused by negligent driving.  In most cases, the damage is to another vehicle but it is not limited to a vehicle.  Property damage can include a fence, a telephone pole, a building etc, and one would be responsible for the cost of repairs to these items.

Usually property damage liability coverage will appear as a digit following the bodily injury liability limit.

• Example:   15/30 10

In the above example, 10 would be interpreted as 10,000 in property damage liability coverage.