While your auto policy may, depending on your needs, offer several enhancements and services, there are six coverages that provide the framework for a standard auto insurance policy. Each coverage is priced separately.
The New York City-based Insurance Information Institute provides a streamlined explanation of each and how it applies to the owner of the policy.
Bodily Injury Liability
This refers to injuries that the designated driver or policyholder cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission.
To have enough liability insurance is very important because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets such as your home and savings. In Georgia, the minimum required is $25,000/$50,000/$25,000.