Liability Coverages

Liability coverages are among the most important in relation to your financial security.

In the face of ever increasing medical costs, the possibility of a multiple car accident, or damage to expensive property, the minimum coverage limits required by law may not be enough. Choosing low liability limits could be an unwise way to save on insurance.

Bodily Injury Liability
This coverage, combined with property damage liability coverage, is the foundation of any auto insurance policy and is required in most states. If bodily injury claims or lawsuits are brought against you and if an investigation or a court finds you to be legally responsible for injuries to persons, your bodily injury liability insurance will pay, up to your policy limit, for injuries to other people - such as pedestrians, passengers in your car, or people in other vehicles. Also, bodily injury liability coverage provides for your legal defense against those bodily injury claims or lawsuits, should it become necessary.

Although it varies by state, bodily injury coverage does not generally pay for your own injuries or to your spouse or other family members, especially when they are not in your covered vehicle. Injuries to you, your spouse, and other family members in your vehicle can be protected more completely by medical payments coverage in Oklahoma, medical payments coverage on an excess basis in Louisiana, Missouri, Mississippi, Indiana, and Illinois, personal injury protection coverage in Arkansas, and by both personal injury protection coverage and medical payments coverage on an excess basis in Kansas.

There are different limits of bodily injury liability coverage. Different limits of coverage are offered to accommodate various levels of protection. If you are found to be responsible for a serious accident with injuries to several people, in your car or in other cars, or if there is even one serious injury or death, your state's minimum insurance may not cover you adequately. An objective in selecting limits of any liability coverage should be to purchase coverage equal to the net asset value that you have available and could reasonably lose in the event of causing damages to others. It is a good idea to consider and purchase higher limits than what your state requires.

Each state's Financial Responsibility Law requires minimum bodily injury liability limits. The limits for each state where the Club sells insurance are as follows: