Liability Insurance Coverage

Insurance companies sell several types of basic automobile insurance coverage.

Liability insurance is the most basic type of automobile insurance available. Missouri law requires an automobile liability policy to include:

Example: A minimum liability insurance package might be shown as 25/50/10, BI, PD, and 25/50 UM. BI means bodily injury liability, PD means property damage liability, and UM means uninsured motorist coverage. The numbers signify:

Note: Persons injured as a result of your driving can and often do sue for damages greater than this example. You may be held personally responsible for damages not covered by your policy. Keep this in mind when purchasing your automobile liability insurance.

Consider higher limits of coverage, which are usually available at a moderate increase in price. Discuss and compare coverage and premium cost with your agent or broker.

Many companies now offer "single limit" liability insurance which covers bodily injury (BI) and/or property damage (PD) liabilities at one single dollar limit such as $50,000 rather than split coverage of 25/50. A single limit of $50,000 means the company will pay up to $50,000 for bodily injury and property damage liability claims arising from any one accident without regard to how much of that limit is for bodily injury and/or property damage. Ask your agent to explain the differences between single limit and split coverages.

Understanding your automobile insurance policy
Other types of automobile insurance