Many use the term "Basic Coverage"when referring to a policy with Liability coverage that does not have Physical damage Coverage. There are two parts that make up the liability portion of your auto insurance policy
Bodily injury liability covers the costs associated with the covered injuries you may have caused to other people in an accident and also provides for a legal defense if you're sued. Bodily injury liability covers injury to people, up to your policy limits.
2. PROPERTY DAMAGE
If you're in an accident in which you're at fault, your property damage liability pays for the covered damage you've caused to the other car and provides you with legal defense if the other party files a lawsuit against you. You should have enough property liability insurance to cover the amount of damage your car might do to another vehicle or an object such as a building or piece of equipment.
Liability coverage is the most important protection a driver can have. If you are found legally responsible for damages resulting from an accident, this coverage may pay up to the limit you select.
Choose your limits wisely, as you will be personally responsible to cover any costs above the limit. If more coverage is needed to protect your personal assets, consider an umbrella policy.
Covered expenses for anyone injured in an accident — including passengers in your car, passengers in another car and pedestrians — can include:
Hospital and medical bills
Pain and suffering
In-home health care services
Your New England Family Saving & Service Specialist can help you understand your state requirements and select the amount of coverage that's right for you.