Liability Coverage
Liability insurance helps pay for injuries and property damage you cause to others in an accident, protecting your finances and future.
Types of liability Coverages
Liability Coverage:
Insurance required by Missouri law that pays for injuries or property damage you cause to others in an accident
Bodily Injury Liability:
Covers medical expenses, lost wages, legal fees, and pain and suffering for people injured by the policyholder. Missouri requires minimum bodily injury limits.
Property Damage Liability:
Covers damage caused to another person’s vehicle or property. Missouri requires a minimum of $25,000.
Why do you need liability and how do you know how much coverage you need?
Liability insurance protects you financially if you cause an accident that injures someone or damages their property. Medical bills, lost wages, legal fees, and repair costs can quickly exceed what most people can afford to pay out of pocket, and without enough coverage your wages, savings, and future income could be at risk. The Liability Risk Curve in the image shows how your need for protection changes over your lifetime. As income and assets grow—such as when you begin a career, purchase a home, or build savings—your financial exposure increases, meaning you should carry higher liability limits to protect what you’ve built. The formula at the bottom provides a practical guide: multiply your annual household income by 2.5, then add your total net assets to estimate the amount of liability protection you should consider. For example, if your household earns $50,000 per year and you have $75,000 in net assets, you would aim for about $200,000 in liability coverage. Matching your coverage limits to your financial growth helps ensure that one accident does not jeopardize your financial future.
