Key things to know about liability coverage
- Liability coverage helps pay for bills or damage when you're at fault.
- There are two types of liability: bodily injury (someone is hurt) and property damage (someone's property is damaged).
- These coverages are required in most states.
What is liability car insurance?
Liability coverage, sometimes referred to as ‘liability car insurance’, provides you protection if you cause an accident or someone is injured on your property by covering things like medical and legal bills.
With auto insurance, you can choose bodily injury liability (someone is hurt) and property damage liability (someone's property is damaged). These coverages are typically required in most states.
What is bodily injury liability?
If you're found at fault in an accident, bodily injury liability insurance can help you avoid some costly out-of-pocket bills for things like medical expenses, legal fees and funeral expenses.
How does bodily injury liability work?
Let's say you spilled your coffee while driving and, grabbing a napkin, took your eyes off the road for just a second - just as a couple of people started crossing the road. You swerved, but still accidentally struck someone.
The injured pedestrian needed an ambulance ride and x-rays. They recovered pretty quickly, and your bodily injury liability coverage paid for his medical bills and other damages.
What is property damage liability?
Property damage liability can help protect you if you're found at fault for damaging someone's property in an accident and can help cover things like damage to structures, repair or replacement of stationary objects, or vehicle repair or replacement.
How does property damage liability work?
Think of it this way. Your drowsy driving caused you to crash into another car on the way home from work one day. Add speed to the equation, and the result was a lot of twisted metal and repair bills.
With enough property damage liability coverage, however, all the other driver's repairs were paid for.
Is liability coverage required?
Bodily injury liability and property damage liability are typically required in most states, but coverage types and limits can vary. Be sure to check your state’s requirements to understand what coverage you need.
How much does liability car insurance cost?
The amount you pay for liability insurance is based on a few factors, including how much coverage you purchase. The higher your coverage limit, the more you'll likely pay for liability insurance.