What is liability Car Insurance?

Nobody's perfect and even safe drivers have accidents. When your mistake causes a crash it's not fair for other people to be stuck with the bill. That's why drivers in all states must  carry liability insurance to cover the cost of other people's injuries and property damage. There are two sides to liability coverage: bodily injury coverage and property damage coverage. 

Bodily injury liability insurance covers people injured in an accident when you're at fault. It pays medical bills, it can also compensate people for things like lost income and pain and suffering. The other side is property damage liability insurance. It covers the cost of repairing or replacing any other people's vehicles that you damaged. It can also pay to repair fences  and other kinds of property you may run into. 

There are limits on the expenses your liability policy will cover. You will choose these limits when you purchase your insurance. They're usually expressed as three numbers: The first number is the limit for bodily injury coverage per person, the second number is the limit for bodily injury coverage per accident, and the last number is the limit for property damage.  

Be sure to get adequate coverage when you set these limits. If you are to blame for an accident you will want to be sure you're able to pay for the damage you cause, but if you think about it, liability insurance doesn't just protect other people, it protects you too because if you didn't have insurance to pay these kinds of bills you'd have to come up with the money on your own and that could jeopardize your savings, your car, even the equity in your house.