Liability insurance is the basic of any car insurance policy. Its use is to pay for the cost of any accident where you are at fault. This includes the bodily accidental injury, expense of the property damage in accident and legal bills.Bodily injury covers the medical bills and lost wages, while the property damage covers the cost needed to repair the damage to vehicles other than your car and other broken things such as fences or buildings. In addition, sometimes the property damage also covers the pain, shock and suffering damage sued by the other party.
The liability coverage limits are commonly presented in three numbers. For instance, your agent may mention that your policy carries liability limits of 35/20/25. That means that:
$35,000 for the bodily injury coverage for each person.
$20,000 for the bodily injury coverage of an accident.
$25,000 for the property damage coverage of an accident.
As most of the time, a party is allowed to sue the other party who is at fault in a car accident, it is always recommended to get more than what your state requires.
This way, the auto insurances might cover the payment of all the accident damages in a serious accident adequately.
As each insurance company in each state has different policy, feel free to contact your insurance agent to get a better understanding and coverage for your auto insurance.