Liability Coverage
The portion of an auto policy that pays for injuries and property damage you cause to others.
Liability coverage is what protects YOU when you cause an accident that hurts someone else or damages their property. It does NOT pay for damage to your own car (that's collision and comprehensive). It pays for the other person's injuries, the other person's car, and any legal defense if you're sued.
Liability is split into two parts: Bodily Injury Liability (BI) covers medical bills, lost wages, and pain & suffering for the people you hurt. Property Damage Liability (PD) covers their car, fence, mailbox, building, etc. Limits are usually written together like "100/300/100" meaning $100,000 per injured person, $300,000 total per accident, $100,000 property damage.
Illinois requires a minimum of 25/50/20. Indiana requires 25/50/25. Wisconsin requires 25/50/10. These minimums are dangerously low — a single broken arm in an ER can exceed $25,000. Most independent agents recommend at least 100/300/100 for any household with assets to protect, and 250/500/250 if you have significant savings or property. An umbrella policy stacks on top of this for catastrophic protection.
Related terms:Coverage·Umbrella Policy·Collision Coverage
Related Geneva services:Auto Insurance·Umbrella