LIABILITY COVERAGE

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This type of coverage will compensate the other party who is in an accident with the insured for personal or property damage caused by the insured. Liability coverage will pay for medical and funeral expenses, lost wages, disability, pain and suffering, and legal fees (up to the policy limits).

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Liability coverage is broken down into two parts:

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1. Bodily Injury—refers to any injury, disease, wound, or sickness caused by the insured. It also covers the death of the injured party. The policy limits are usually per person injured or per accident. If injuries exceed the policy limits, the insurance policy does not pay over the limit.

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2. Property damages—any type of property injury, loss, or destruction for which the insured is legally responsible. This type of coverage also specifies policy limits.

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The medical statements clause will often pay for medical expenses incurred by the insured or anyone else covered by the policy. Usually, experimental procedures or treatments that are not commonly and customarily recognized are excluded.

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Uninsured motorist coverage was developed to protect drivers from other drivers who do not have insurance. When an uninsured motorist is at fault, the standard provision is that the company pays compensatory damages to the insured.

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Underinsured motorist coverage provides compensatory damages to the insured if another driver is at fault and causes injuries over the policy limits of his or her policy.

Insurance