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- Liability car insurance covers damage you cause to other vehicles and parties.
- Liability car insurance is required by state law, though specific requirements vary by state.
- To cover damages to your car, you need comprehensive, collision, or full coverage.
- Compare car insurance rates with Coverage.com.
Car insurance is required by state law, unlike homeowners insurance. While you can spring for more coverage with comprehensive coverage or full coverage car insurance, you can also opt for the minimum requirements and just buy liability insurance.
What is Liability Car Insurance?
Coverage for Damages You Cause
Liability insurance doesn't cover damage to you or your vehicle — that requires comprehensive, collision, or full coverage. It only pays for damage you cause to others or their vehicles.
The two main components of liability insurance are bodily injury and property damage, which most states require. Bodily injury pays for injuries you cause to others. Property damage liability pays for damages to the affected party's vehicle or other property in an accident where you're at fault.
Legal Protection
Liability also helps cover legal fees and court costs if you're sued. This can be applicable in cases where you cause significant injuries or damages.
Required by Most States
Liability coverage is required by law, except in New Hampshire and Virginia. In states where it isn't mandatory, drivers must still prove they can pay for at-fault injury and property damage expenses.
Types of Liability Car Coverage
Bodily Injury Liability (BI)
Bodily injury liability covers medical expenses, lost wages, and sometimes pain and suffering for others injured in an accident you cause.
It's expressed as two limits (e.g., 25/50). The first number is the maximum payout per person, the second is the maximum per accident. For example, say your limits are 25/50. This means that each of your coverage will pay up to $25,000 in bodily injury expenses per affected person, up to $50,000.
Property Damage Liability (PD)
Property damage liability covers damage to other vehicles, structures (fences, buildings), or property you hit with your car. It's typically expressed as a single limit (e.g., $50,000) representing the maximum payout per accident.
Why Liability Car Insurance is Crucial
Protects Your Assets
Auto Liability Insurance helps you avoid or mitigate out-of-pocket expenses associated with an at-fault accident. Without it, you may be liable for tens of thousands of dollars in out-of-pocket legal fees, medical expenses, and vehicle repairs for the injured party.
Financial Security
A major accident can leave you in a mountain of debt or, worse, bankrupt. Liability coverage kicks in if you're at fault during a car accident to help you avoid financial hardship.
State Requirements
Driving without liability insurance in most states is illegal. It's important to know your state's minimum liability coverage limits and other insurance requirements.
Liability car insurance FAQs
How much auto liability insurance you need varies by state. But even your state's minimum required coverage may be too low for adequate protection. Consider your assets and risk factors when choosing limits.
Liability insurance doesn't cover your own injuries or vehicle damage. For that, you'll need more comprehensive types of car insurance.
If the other driver doesn't have insurance (or not enough), your uninsured and underinsured motorist coverage will step in to cover the difference. These insurances are only required in certain states, but it's a good idea to have them just in case.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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