Liability Insurance

Insurance Coverage - Liability

Liability insurance coverage:

Liability Insurance coverage is typically required by all states in the United States. This will typically cover any bodily damage (physical harm to another person) resulting from a car accident if it is your fault. This will also cover property damages (like Automobiles, Road signs, Houses etc.) if you are found to be the guilty party in an insurance claim.

The liability insurance coverage is typically written as three numbers like 25/50/25. If you carry such an insurance policy, this means that you have maximum coverage in the amount of $25,000 for bodily injury damage per person, maximum coverage of $50,000 for bodily injury damage per accident and coverage of $25,000 for property damage per accident. Different states in America set their own limits of liability insurance coverage.  You can get that information from this website:

Minimum Liability insurance coverage

Common Liability Insurance Terms

Bodily Injury Liability - Coverage for injuries to others
Property Damage Liability - Coverage for property damages
Insurance Claims - Typically filed by another party
Level of Liability - Maximum amount (dollars) in coverage
Lawsuit - Typically filed by others if your are responsible

What does 25/50/25 really mean??

The first number 25 means that the Insurance company will pay for things like medical bills, hospital fees and lost wages in the amount of $25,000. If there are multiple people injured in an accident, the insurance will limit coverage in the amount of the second number 50 ($50,000) that was mentioned above. The last number 25 is for property damage insurance coverage. The insurance company will pay upto $25,000 for things like other autos involved in the accident, any road signs or property items like fences and household items that were destroyed in the accident. This is again assuming that you were at fault in the accident. If we reverse the scenario and another person is at fault, then their insurance company will be responsible for not only damage to their vehicle but also to your auto, your medical bills and property damages.

liability insurance

Let's say that you leave in Nevada and have 15/30/10 insurance coverage and you are involved in an accident where you were at fault. In addition several people get hurt in that accident unfortunately. If an ambulance is called which takes one or more people to the hospital, you will be held liable for payment of any medical expenses. If your coverage is only $30,000 per accident, and the total bills happen to be around $50k, you will be responsible for this amount.

$50k - $30k = $20,000!

As such it is recommended that typically you carry 100/300/100 or at the very least 50/100/50 insurance coverage.

Related Links - Liability Insurance Coverage

Liability insurance - Wikipedia
Definition of Liability insurance from
Texas Auto Insurance Liability Coverages
What is Liability Insurance?


Liability Insurance

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