What do car insurance providers mean when they talk about liability insurance coverage and limits? I plan to get my new vehicle here in Napa, California insured and I would like to be well informed. Thanks!

Aaron

Napa, CA

Hello Aaron! Liability Insurance is a form of car insurance protection giving you financial coverage from monetary obligations arising from injuries, economic losses, deaths and property damages that you may have caused in a car accident. This is actually one of the most important types of insurance you would want to get for your car there in Napa, California. There are three basic types of liability insurance:

1. Bodily Injury Liability – pays for treatment of injuries you may have caused to another person in an auto accident. This also covers for medical expenses, legal and even funeral expenses as well as lost wages to the other party.

2. Personal Injury Liability – Is a “No-Fault” insurance coverage that pays for treatment of your injuries. Even if you were the one to cause the accident.

3. Property Damage Liability – As stated, this pays for repair or replacement of damages you may have caused to private or public property in a car accident.

Most states that require car owners to have auto insurance coverage also have minimum levels of coverage that you need to get for liability insurance. For California, the minimum requirements for liability insurance is pegged at 15/30/5 ($15,000 compensation for each person injured per accident, $30,000 limit for all people injured per accident and $5,000 for property damages). It is highly advisable that you get as much as you can afford since car accident costs can easily far exceed the state minimum limits which you’ll have to then shoulder out of your own pocket.