An auto insurance policy is actually a package of different coverages. Most states require you to purchase a minimum amount of certain kinds of coverage. But if you're interested in protecting yourself from a lawsuit or from hefty repair bills, then it makes sense to buy more than what's required. Liability insurance Liability lingo Insurance types usually refer to liability coverage limits as a series of three numbers.
Liability coverage is the foundation of any auto insurance policy, and is required in most states.
If you are at fault in an accident, your liability insurance will pay for the bodily injury and property damage expenses caused to third parties in the accident, including legal bills. Bodily injury expenses include medical bills and lost wages. Property damage expenses pay for the repair or replacement of things you wrecked. See the Minimum levels of required auto liability insurance to find out what's required where you live. Remember, if you cause a serious accident, minimum insurance may not cover you adequately.