Auto insurance liability can be expressed in a series of three numbers. Consumers who are looking for coverage may see a listing which looks like 20/40/20 when looking for coverage. These three numbers represent the minimum level of coverage that a vehicle registered in the state must carry to comply with state law.

The first and second numbers refer to bodily injury liability coverage. This is the part of the policy which pays for personal injury claims made by the occupants of the other vehicle when an at-fault accident occurs. Depending on the rules of each state, accident victims can make claims for medical bills, rehab expenses, lost income, and pain and suffering. The first number refers to the level of liability insurance to pay for injuries and damages claimed by one person injured in an accident. The second one indicates how much coverage is available to pay for claims made by all people injured in the same accident.

The third number indicates the level of property damage liability coverage the policyholder has in place. This part of the policy is used to pay for repairs to the other driver’s vehicle. It also pays for the cost to repair or replace public property damaged or destroyed in the accident, such as guard rails, sidewalks, sign posts, light stands, fences, buildings and sheds.

Auto insurance buyers can choose to buy a policy with a higher limit than the one mandated by state law if they wish. If the minimum level of coverage is relatively low, buying a policy with a higher level of coverage is a better choice.