What is Liability Coverage?

What is Liability Coverage and Why Do I Have to Have it?

what-is-liability-coverageWhat is liability coverage?

Liability coverage simply protects you from lawsuits in the event you are involved in an accident.
Liability coverage provides protection even if you are driving another person’s vehicle.

There are three main types of liability coverage:

Bodily Injury

Bodily Injury coverage is typically sold as split limits, a limit for each passenger and an overall limit for the accident. For example, if you elect to purchase $100,0000/$300,000 coverage, you have the following coverage maximum payouts in the event of an accident:

  • $100,000 maximum payment to any individual involved in the accident
  • $300,000 maximum payment for all individuals involved in the accident.
  • The minimum limits for BI in the State of Wisconsin is $25,000/$50,000.

Always consult with your insurance agent about the risks associated with purchasing minimum limits.

Medical Payments

This coverage provides protection for medical and/or funeral costs for you in the event of an accident. Please check with your agent for a complete description on medical coverage and its relation to other existing health/life coverage you may have.

Property Damage

As the name implies, property damage protects you from any damage resulting to a person’s car, or other property in the event of an accident. For example, if you purchase $100,000 of Property Damage, the maximum amount paid for damage to other individual’s property would be $100,000 for the accident.

Uninsured/Underinsured Motorist

Uninsured Motorist provides coverage for you in the event the other driver does not have insurance at all. Underinsured Motorist provides liability coverage for you in the event the other driver does not have enough insurance coverage.