All drivers in the state of California must purchase liability coverage as part of their auto insurance policy. Its purpose is to protect drivers from incurring devastating financial losses when found at fault in a car accident. Insurance companies outline the limits of a driver’s liability coverage using three numbers to demonstrate the maximum amount they will pay in the event of a claim.
If you are found at fault in an accident where the damage exceeds your coverage limits, you could be personally responsible for paying the remaining costs. We will explore the three limits of an auto insurance policy to help you make an informed decision about your coverage needs.
What Is Liability Insurance?
Liability coverage is the foundation of any auto insurance policy. It covers the costs associated with injuries and damage that you may cause to others in an accident. However, unlike comprehensive coverage, it does not cover expenses related to a policyholder’s injuries or damages. You could add this level of protection to your policy for an extra cost.
Liability Coverage Limits
The three primary limits of an auto insurance policy are bodily injury per person, bodily injury per accident, and property damage. These limits are typically written out as 15/30/5, representing each type of liability coverage respectively. Each of these limits serves a distinct purpose and plays a critical role in your overall coverage.
Bodily Injury per Person
The first limit is bodily injury per person, which is the maximum amount your insurance will pay for injuries sustained by a single individual in an accident. It can cover medical expenses, lost wages, and compensation for pain and suffering for an injured driver, passenger, or pedestrian.
Bodily Injury per Accident
The bodily injury per accident limit is the total amount your insurance will pay for all injuries sustained in a single accident. It is usually two or three times higher than the bodily injury per person limit, as it encompasses the combined medical expenses of all injured parties.
Property Damage
Property damage coverage is the maximum amount your insurance provider will pay for damages to another person’s property in an accident. It typically includes damage to vehicles, buildings, fences, and other structures.
Choosing the Right Limits
Understanding the limits of your auto insurance policy is crucial for ensuring adequate protection in the event of an accident. The three main limits play a vital role in your coverage. By carefully considering these limits and selecting appropriate coverage, you can safeguard yourself from significant financial burdens and gain peace of mind.
California drivers seeking affordable auto insurance should contact agents at Saferoad Insurance today. For potential savings, consider bundling home and auto insurance in Anaheim. Give us a call if you have questions about choosing an auto insurance policy for your needs.