Almost every state requires liability insurance to operate a car. So, what is it?

Liability insurance covers bodily injuries and property damage suffered by another person or persons when you are found responsible for a car wreck.

In the case of bodily injuries, liability insurance covers medical expenses, pain and suffering and lost wages of another person or persons.

In the case of property damage, liability insurance covers repair or replacement of another person’s car and other damaged property.

Coverage is limited to the limits of your policy. If your policy covers $15,000 of property damage and the cost of replacing the other driver’s car is $40,000, your policy will pay $15,000, and you are responsible for the remaining $25,000.

In Colorado, the legally required minimum car insurance coverage is up to $25,000 for bodily injury to one person, up to $50,000 for bodily injuries to all persons injured in a single wreck and $15,000 for damage to the property of others, typically written as 25/50/15.

You can purchase higher amounts of insurance, and our agency recommends that our clients do so. In fact, in many cases we require it because the cost of treating bodily injuries and repairing or replacing today’s cars can easily exceed the legally required amount of insurance.

Umbrella insurance policies are one popular way of adding additional coverage at a reasonable price.

Liability insurance does not cover damage to your vehicle or other property of yours or injuries sustained by you.