What is the protection offered by liability coverage insurance?


If you are involved in an auto accident and your vehicle is damaged because of someone else’s negligence then you might be able to make an insurance claim against the driver at fault where you can claim for bodily injury as well as damage to property.  However, it is up to you to establish that the other party was at fault.  You can also file a lawsuit against the other party and sue the person for the pain and suffering that you have undergone but it should come under the ‘serious injury’ category as described by the insurance laws.  The third party could also be dragged to court and sued for damage to property while bodily injury has been sustained and for all the other economic losses that you have to undergo which is covered by or if it has exceeded the limits of the no-fault coverage.  But suing the other party would be entirely your personal action and your insurance company will not be involved in providing or paying for the lawyer that you might want to engage to make the claim.

Liability coverage generally protects you and your property as well as the third party if the claim is made that you were at fault or negligent etc.  The coverage will make payments to the third party that is injured in the accident and this payment would be made on your behalf in the event of your car being involved in the accident where there is serious injury or even death as well as property damage.

According to the New York’s Vehicle and Traffic law the minimum limits of the third party bodily injury coverage includes:

  • $50,000 for bodily injury (that has not resulted in death) that is sustained by 2 or more people in one accident.
  • $100,000 for bodily injury sustained resulting in death, by 2 or more people in one accident.
  • $25,000 for bodily injury that has not resulted in death.

This coverage is also referred to as ‘25/50/10’ cover as the minimum coverage that is mandatory for damage to property or damage to another person’s property is $10,000 per accident.

While the liability coverage will remain for all passengers in your vehicle, it might not be provided for the spouse unless you have supplemental spousal liability insurance but the spouse will still be eligible for the very basic no-fault coverage.