Liability auto insurance coverage, explained simply
Liability auto insurance coverage is the part of a policy that responds when you are responsible for an accident that hurts someone else or damages their property. It does not pay for your own car or your own injuries.
Because the other side of the accident is who it protects, liability is the coverage most states ask every driver to carry. Understanding its two halves makes it much easier to read a quote.
The two halves of liability coverage
Liability is usually split into two separate limits on your policy.
Bodily injury liability
Helps pay for medical bills, lost income and similar costs when someone else is hurt in an accident you cause. It can also contribute to legal costs if you are sued.
Property damage liability
Helps pay to repair or replace things you damage, most often another person's vehicle, but also fences, mailboxes or buildings.
What neither half pays for
Your own car, your own medical bills and your own belongings. Those need other coverages, such as collision or medical payments.
How to read liability limits
Limits are often written as three numbers with slashes, for example 25/50/25. As a format illustration only, the first number is the most the policy pays for one injured person, the second is the most for everyone injured in one accident, and the third is the most for property damage.
Those numbers are measured in thousands of dollars. If the real cost of an accident is higher than your limit, the difference can fall on you, which is why many people look at limits above the legal minimum.
A simple example
Imagine you misjudge a stop and hit the back of another car. Property damage liability would respond to the repair bill for that car. If the other driver needs medical treatment, bodily injury liability would respond to those costs, up to your limits.
Your own bumper is a different story. Repairing it would fall to collision coverage if you have it, or to you if you do not.
Who often looks closely at liability
Drivers with an older car
When the car is worth little, some drivers keep liability and skip coverage for their own vehicle. Check that your lender allows it first.
Homeowners and savers
More assets can mean more to lose in a lawsuit, so higher limits may be worth asking about.
Drivers with long commutes
More time on the road means more exposure to accidents, which is a reason to review your limits.
Good to know
- Required liability limits differ by state, and a legal minimum is not necessarily enough for a serious accident.
- Liability follows fault, so it applies only when you are responsible for the accident.
- Higher limits usually raise the premium, though often by less than people expect. Ask for quotes at a few different levels.
- Policy wording varies. Always read what your provider says is covered and excluded.
Liability coverage questions
No. Liability covers harm to others. Full coverage is a common phrase for liability combined with collision and comprehensive, which help with your own car.
Bodily injury liability can respond when passengers in your car are hurt in an accident you cause, subject to policy terms and limits. Details differ by provider and state.
It depends on your finances and risk comfort. A licensed agent can discuss options with you, and comparing quotes at several limits shows how the price changes.
Often the owner's coverage applies when a permitted driver borrows the car, but rules vary. Ask your provider how it treats other drivers.
Compare liability auto insurance quotes
Choose liability as your coverage type, and partner providers can show quotes at different limits.
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