Liability auto insurance protects you from that worst case scenario by providing a cushion between your assets and the amount you’re on the hook for. For this reason, choosing the right auto liability limits is the most important part of your car insurance quote comparison. NerdWallet typically recommends having at least as much liability coverage as your net worth.
Types of liability coverage
But liability coverage levels come in threes — you’ll probably see something like 50/100/50 up to 250/500/250 in typical policies. You can think of these limits like: individual injuries / total injuries / property damage. Insurers are a little more technical, calling them bodily injury liability, total bodily injury liability and physical damage liability.
They come in thousand-dollar increments, so when you choose 100/300/100 limits, you’re choosing:
$100,000 for bodily injuries per person you injure in a crash.
$300,000 total for all bodily injuries you cause in a crash.
This article was written by Kayda Norman and originally published on www.nerdwallet.com