Pays for the expenses of people you hurt while driving
your car. Bodily injury liability (BIL) pays for other
people’s medical expenses; property damage liability
(PDL) pays to repair damage or replace their vehicle.
Higher liability limits are recommended due to
situations like these.
Liability insurance covers your legal liability when injuries or property damage happen as a result of your actions. The minimum level of coverage required by state law is 25/50/25
The first number (25) is the Bodily Injury Liability per person.
The second number (50) is the Bodily Injury Liability per accident.
The third number (25) is the Property Damage per accident.
If you have a 25/50/25 liability package and you are involved in a serious accident, it’s possible that an individual’s medical expenses could exceed $25,000, or a group’s expenses(if more than one car is involved) could total more than $50,000. In addition, $25,000 for car repairs isn’t a lot, considering that the average car now costs more than $20,000. Consider situations like these when talking to your agent about the limits that are available to you.
Your deductible is the amount that must be paid out of
pocket by you for covered losses before the insurance
company pays a claim. Choosing a higher deductible
will save money, but it’s a trade-off between saving
money on your annual premium and having to pay the
deductible if you have a loss.