Liability coverage

Liability Coverage is what protects you if you’re at fault for an accident and you hurt someone or someone’s property. It’s made up of two components: bodily injury liability and property damage liability. This type of car insurance doesn’t cover your injuries or damage to your property.

Costs of injuries and property damage can be expensive. In fact, they can be so expensive that they are generally well out of the average person’s budget. If you are unable to pay, you risk losing your assets, such as your home, in lawsuits.

The best way to protect yourself from huge financial losses after an accident is by having liability insurance.

Liability insurance is the most commonly required type of car insurance throughout the various states, Missouri being one of them.

Minimum Limits on Auto Liability Insurance
Something to be aware of when deciding to purchase liability insurance is that it may not provide enough coverage. A limit is the maximum dollar amount your insurance may pay per event. For example, if you have a property damage limit of 10,000 and cause 15,000 in damages in a covered accident, you will be responsible for the excess 5,000.
If you carry only state minimum required liability car insurance with the lowest limits and you’re responsible for a bad covered accident, you would have to pay the balance of the claims that exceed your policy limits. It’s in your best interest to select the highest auto insurance liability limits you can comfortably afford so you have adequate coverage if the unthinkable happens.

What’s Typically Not Covered by Liability Insurance?

Liability coverage typically doesn’t pay for damage to your own car or costs associated with your own injuries from an accident you cause. There are other types of coverage you might want to consider for better protection. For example, collision coverage can help you pay for damage to your own vehicle.
Liability also does not extend to your injury costs. If you want this type of coverage, you may want to consider medical payments coverage or personal injury protection.

Required minimum amounts vary
How much liability auto insurance you’re required to buy depends on the state where you reside. How much you buy beyond the legal minimum depends on your finances and assets. If money is tight, you might need to settle for state minimum limits, but that can be risky. If you have sizeable assets, you may want to consider higher limits. That offers an extra layer of protection for you.