There are two primary types of liability coverages in auto insurance policies: bodily injury and property damage
To help you better understand the terminology used in the insurance claim process in Washington State, a "third party" is anyone who claims damages that is not a policyholder or the insurance company. In the context of auto insurance, if you are in a crash and another driver is at fault, that driver is the third party. You would file a third-party claim against their insurance to cover your bodily injuries and property damage. The "first party" is the policyholder or other designated drivers (such as teenagers living at home), who can make claims for bodily injury and property damage against their uninsured/underinsured motorist coverage.
Some drivers have no insurance, some have the minimum insurance amounts required by state law, and many have higher insurance coverage amounts. If you are the victim of a motor vehicle crash, the driver of the at-fault vehicle hopefully has insurance, and if they do, hopefully their insurance is higher than the minimum amounts.
Bodily Injury Coverage
Under Washington State law, the minimum coverage limits required are $25,000 for injury or death of one person and $50,000 for injury or death of two or more people in a single crash. The liability coverage will pay for medical expenses, lost wages, and psychological harms caused to the injured person(s).
Property Damage Coverage
The minimum coverage limits required are $10,000 in property damage liability. This covers the cost of repairing or replacing property damaged in a crash. This typically includes damage to vehicles, including bicycles, and also covers property such as buildings, fences, and signs.
