Understanding Liability Limits

Car insurance can be confusing. You will likely see a bunch of different numbers, terminology, and statements on your car insurance policy, but not really understand what it all means. In this article, we are going to discuss liability insurance and its limits.

 

In most areas of the United States, all vehicles are required to have a minimum amount of insurance. While most states require the same property damage and bodily injury liability, the amounts are different in every area, and some states are the exception to the rule.

 

For example, in Colorado, Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Minnesota, New Jersey, New York, Oregon, and Utah, personal injury protection is required along with property damage and bodily injury liability.

 

Underinsured or uninsured motorist coverage is also an additional requirement in states such as Connecticut, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, New Hampshire, New Jersey, New York, North Dakota, Oregon, Rhode Island, South Carolina, South Dakota, Vermont, Virginia, West Virginia, and Wisconsin.

 

However, Pennsylvania also requires medical payment coverage. Some states are an exception. For example, in Florida, vehicles are only required to have liability for property damage, as well as protection in the event of a personal injury. In New Hampshire, motorist are required to have coverage for uninsured motorists, but only carry financial responsibility in the event of an accident, the same applies to motorists in Wisconsin as well.

 

As you can see, it can become extremely confusing for car owners to determine what type of coverage they need. To help relieve some of the confusion, this article will describe how you can easily understand the minimum liability limits as required by law in your state.

 

 

Each state has a guideline for minimum coverage; the coverage varies from one state to the next, depending on their requirements. However, once you know how to read these limits, you will have no trouble understand what is required of you for car insurance. Minimum liability limits generally come with three different numbers.

 

For example, in the state of Georgia, the required minimums on liability are 25/50/15. The first number of the sequence indicates how much coverage is available per person with bodily injuries. The second number of the sequence indicates how much coverage is available for bodily injuries for an entire accident. The third and final number indicates how much coverage is available for damage to property.

 

In other words, for the minimums in the state of Georgia, each vehicle is required to carry a minimum of $25,000 in coverage for every injured person. They are also required to carry a minimum of $50,000 in coverage for injured persons in an accident, as well as $15,000 in coverage for damage to property.

It is required by law to carry the minimum amount of liability on a vehicle as specified by the state that you live in. However, for those that are paying on a car loan, the creditor may require that you carry full coverage which is likely to exceed the minimum state requirements, and adds coverage to the vehicle like comprehensive and collision car insurance.