Liability

This part of your liability coverage pays for injuries and losses to other people caused by your car. It pays for their medical/funeral expenses, loss of income as well as providing compensation for pain and suffering. This coverage also pays for your legal defense when you're charged with causing harm to other people with your car.

In the sample policy above, $250,000 is the maximum amount of bodily injury liability coverage that your policy provides to any one person for a given accident. That means that if one person has a $300,000 claim against you, your policy will only pay up to $250,000, and you will be responsible for the remaining $50,000.

In the sample policy above, $500,000 is the maximum amount of bodily injury liability coverage that your policy provides per accident for a given accident.