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Liability covers bodily injury and property damage (BI/PD).
This covers your legal liability, up to the dollar limits you select, for damages caused to others in a covered vehicle accident.
In most states today, liability insurance is mandatory.
Under BI/PD, your insurance company pays for damages to an injured person and for property damage that you are legally obligated to pay as a result of an accident.
If your policy covers you in the event you’re sued after an accident, your insurance company will pay for a lawyer to defend you.
Liability limits generally appear as three numbers, for example, 25/50/25 or 100/300/100.
The first number refers to the maximum amount, in thousands, that your insurance company is obligated to pay for bodily injury per person.
The second number is the maxi-mum that would be paid out for bodily injury per claim and the third number represents the maxi-mum amount your insurance company is obligated to pay for property damage you cause.
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