Whilst you are behind a wheel of a vehicle there is always a possibility that you might cause an accident and injure other road users and damage people's vehicles and houses.
Bodily injury and property damage liability vehicle insurance is obtained to cover such claims against you if the accident was your fault.
Unfortunately, this policy does not cover the injuries and losses suffered by you.
Bodily injury section would pay for any hospital costs, death payments and funeral expenses of the third-party motorists, passengers and other individuals affected.
The property damage part settles any losses to the cars, road rails, houses, fences and such.
Each driver must at least arrange this coverage to legally drive a car in the United States.
It is commonly referred as bare bones insurance because it covers the minimal legal requirements.
Nonetheless you could purchase a lot more than the legal minimums with a small rise in your premium.
These limits could be explained with an example.
If your limits are 20/50/30, this means: - Maximum bodily injury insurance payment per person could not exceed $20,000 - Maximum bodily injury insurance payment per accident could not exceed $50,000 - Maximum property damage insurance payment per accident could not exceed $30,000 Simply, the claimants will have to go after you for any loss that is not covered by your insurance.
Therefore, it will be wise to attain ample cover without much regard to basic enforced by your state.
You might want to buy personal injury protection (PIP) and collision insurance to cover your own medical bills and monetary damages.
In addition, in few states in America no fault is assigned to any party in a car incident and therefore everybody needs to pay for their losses.
As a result personal injury protection will be the legal requirement in those no fault states.
In short, this cover is the core part of any car insurance.
You would start with this cover and add further coverage in line with your risk profile and budget.