You have several options when you buy motorcycle insurance, one of which is liability coverage. There are two types of liability coverage: coverage for bodily injury and property damage that you may cause to third parties in case of accident. Unlike most types of insurance, liability insurance does not protect you or your motorcycle, but it is required by law.
Bodily injury and property damage liability covers your legal responsibility for an accident that involves injury to someone else or damage to a third party's property up to the limit you select.
If you choose a limit of 15/30/10 (often the lowest required by law), this means:
As an example, assume you are found at fault for an accident that injures 2 people and causes damage to another vehicle. The driver's medical bills total $5,000 while the passenger's medical expenses are $3,000. The damage to the other vehicle is $8,000.
In this case, all damages and injuries are covered because they fall within the limits you chose. If you are found at fault for an accident and property damage or medical expenses exceed the limits you choose, you will be responsible for the rest.
In most states, bodily injury liability coverage is required by law. This form of motorcycle insurance covers medical expenses caused to other people while you are riding your bike, along with injuries sustained by passengers. It will not pay your medical expenses, however.
To determine how much motorcycle bodily injury coverage you need, start by determining your state's minimum requirements. Keep in mind most states require a very small amount of coverage that rarely offers adequate protection in the case of a severe accident.
Motorcycle property damage liability coverage protects you by covering the cost to replace or repair a third party's property that is damaged while you are riding.