Bodily Injury and Property Damage Liability covers your legal liability for a covered accident that involves injury to another person or damage to someone’s property, up to the limit of liability you select.
If your limits are 15/30/10, this means:
- No more than $15,000 would be paid per person for Bodily Injury
- No more than $30,000 would be paid per accident for Bodily Injury
- No more than $10,000 would be paid per accident for Property Damage
You are at fault for an accident that injured two people and damaged another vehicle. The other driver’s total medical bills were $5,000 and the other passenger’s total medical bills were $3,000.
The damage to the other vehicle was $8,000. All injuries and damages would be covered because they fall within the Liability limits you selected. Each person’s injuries were less than $15,000, and the amount for all injuries was less than $30,000. The other vehicle’s damage also was below the $10,000 Property Damage Liability limit.
On the other hand, if you are at fault for an accident and the medical bills from the injuries or property damage that you cause exceed your limits of liability, your personal assets may be at risk.