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What does liability car insurance cover?

April 25, 2013

Advisor answers

Lisa Andrews

Lisa Andrews

Madison, WI

Auto liability insurance pays for the damage you cause to property or people as a result of your negligence while driving (or, to be technical, while "using" the car...I recall a claim that occurred as a result of the insured hunting off the back of his truck, but that's another story). The maximum amount that the insurance company will pay is usually stated like this:

250/500/100 which means:

  • $250,000 of coverage maximum for any one person's injury related to the accident
  • $500,000 of coverage maximum for all injuries related to th...

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