Bodily Injury and Property Damage Liability coverage for your ATV pays for injuries to people or damage to property that your ATV causes. Liability also protects your assets, up to the limits you choose.
If your limits are 20/40/15, this means:
- No more than $20,000 would be paid per person for Bodily Injury
- No more than $40,000 would be paid per accident for Bodily Injury
- No more than $15,000 would be paid per accident for Property Damage
You are at fault for an accident that injured one person and damaged a fence. The other rider's total medical bills were $2,000 and the fence damage totaled $500. All injuries and damages would be covered because they fall within the Liability limits you selected. Each person's injuries were less than $20,000, and the amount for all injuries was less than $40,000. The damage to property also was below the $15,000 Property Damage Liability limit.
On the other hand, if you are at fault for an accident and the medical bills from the injuries or property damage that you cause exceed your limits of liability, your personal assets may be at risk.