Number of states mandating automobile insurance
Liability auto insurance is actually the combination of two types of coverage: Bodily Injury (BI) and Property Damage (PD).
The first pays for expenses that result from injuries sustained an accident while the latter serves to compensate for damaged property.
When purchasing liability insurance, consumers will usually be quoted limits broken down into 3 numbers in the following fashion: 25/50/10.
These numbers, also known as 'split limits' indicate the maximum amount that your carrier will pay out for bodily injury coverage for one individual, bodily injury coverage for all people involved in the accident, and property damage respectively.
Bodily injury liability coverage (BI) is the most common type of auto insurance because it's required in almost all states.BI even covers any legal fees you incur if the other party decides to sue you in court.Protection is provided by your insurer up to the BI liability limits in your policy; any bills beyond that will be your liability.A common misunderstanding about comprehensive insurance is that it covers everything. It only covers automobile damages from non-collision accidents and will not cover personal items, such as your wallet or car radio, if they are stolen.
Some insurance providers, such as AAA, extend their coverage of your liability to rental cars.Know that versus the limits of liability car insurance, physical damage car insurance comes with a separate deductible amount that you will need to pay on your own per incident before your coverage kicks in.