2 kinds of auto insurance liability
The first kind is called bodily insurance liability and what this means is If you injure somebody else in a car accident then your coverage, if you choose this one, will extend to you and everyone else on your auto insurance list. Family members, significant others and whoever is on the list. The list is king and decides who is to benefit from this sort of encounter.
The great part is that even if its not your car that you are driving, you still get covered. Unless you stole the car, meaning you need permission, written or verbal consent is enough. Generally the state, whichever one you are a part of , requires that you have some kind of bodily insurance liability.
They do this because if you injure an innocent person, meaning it’s your fault, not the others, that they are protected and will receive compensation. Bear minimum is fine unless you have a lot of assets that need protecting, tangible or intangible. Basically if you want to save money, this is not where to do it.
Property Damage Liability
The second kind of auto insurance liability is property damage liability. This is the damage that you cause to someone else’s property in any car you drive. Usually the damage has to do with a car, however even if it doesn’t this type of auto insurance covers it.
Keep the cost in mind relative to the property that could be damaged & calculate it that way
When determining how much of this type of insurance you want to have, keep in mind the property that could be considered in the damage. If you drive a sports car, how much will it cost to repair it? Keep it relative to the vehicle, property you could possibly damage.
It is always relative
