Liability Car Insurance Coverage

There are five basic types of auto insurance.
Liability car insurance coverage. If you cause a car accident in other words if you are liable for the accident liability coverage helps pay for the other person s expenses. Liability insurance limit amounts are given as three numbers separated by slash marks for example 50 100 50. If you have a car insurance policy with liability limits of 25 000 50 000 25 000 your insurance company will pay up to 25 000 for damages to the other driver s car if a claim is filed. It covers any damages to property or another person due to an auto accident.
In ontario it is mandatory for all motorists to have active standard car insurance. Your auto liability coverage will pay for the damage to the car you hit as well as for the medical bills and other costs from the injuries sustained by the driver and the passenger including pain and suffering and lost wages. For example a state might require all drivers to have liability. Liability coverage collision coverage comprehensive coverage uninsured motorist and medical payments coverage.
Each state sets a minimum for how much liability coverage a motorist must carry. Auto liability insurance is a type of car insurance coverage that s required by law in most states. Liability insurance is a mandatory coverage for automobile policy. While shopping for liability coverage you may see an insurance policy expressed as 25 50 15 or similar to the above example.
If the damage is more than 25 000 you will be personally liable for paying the rest. In this case the first 50 means 50 000 and refers to the amount of bodily injury coverage per person covered by the policy. There are three key numbers to look out for with liability insurance. The minimum coverage for liability coverage is 200000 in ontario but you may increase your limit.
Coverage for injuries per person total injury coverage per accident and coverage of property damage per accident. Liability just means responsibility so liability insurance protects you. When you re buying car insurance you ll need to choose the amount of liability coverage you want. Your policy will either be split limit or combined single limit.
Liability car insurance is the coverage that pays to repair the damage you cause to other people and their things.