Liability car insurance: Stay covered
Key points
- Liability coverage helps pay for bodily injury or property damage you cause in an accident (such as medical bills, repair costs, or legal fees).
- It does not cover your own injuries or damage to your vehicle.
- Having liability insurance helps you meet legal requirements in most states and protects you from financial risk if you’re found at fault.
Liability car insurance helps financially protect you if you’re found at fault in an auto accident. It can help cover the injured person’s medical bills, their vehicle repair costs, and any related legal fees if you’re held responsible for injuries or property damage. Drivers are legally required to carry liability insurance in most states.
What is covered by liability insurance?
Liability insurance comes in two forms: bodily injury liability coverage and property damage liability coverage. For auto insurance, they break down like this:
Bodily injury liability coverage (BI)
Bodily injury liability coverage helps pay for an injured person's medical expenses if you're found at fault in an accident. This can include emergency room care, medical scans, follow-up visits, medical equipment (e.g., crutches, wheelchairs, neck braces), prescriptions, and more.
It can also help cover other costs related to the person’s injuries, such as lost wages, pain and suffering or legal fees if you're sued. This is why most states require that you have BI coverage on your car insurance policy to drive on the road.
Property damage liability coverage (PD)
Property damage liability coverage helps pay for repairs if you’re at fault for damaging someone's vehicle or property. For example, if you rear-end another car, it can help pay for the other car’s repairs, so you're not stuck with the whole bill from their auto repair shop. As for property, this can include things like someone’s home, store,
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get a quoteHow liability coverage limits work
The amount your insurer will pay for a covered liability insurance claim depends on the coverage limits you choose. Each state sets minimum coverage limits for bodily injury liability and property damage liability that drivers must purchase, but you may decide to buy additional coverages. Typically, you may see three liability coverage limits on your car insurance policy:
| Type of liability coverage limit | What it means |
|---|---|
| Property damage liability limit | This is the maximum amount your insurer would pay to repair damage you cause to another party's property. The maximum payout would not exceed the limit you've set. |
| Bodily injury liability limit per person | This is the maximum payout for each person who's injured in an accident that you cause. |
| Bodily injury liability limit per accident | This is the total amount your insurer will pay out for all medical expenses for a single accident you're at fault for. It's important to set this limit at an amount that makes you comfortable – it may be needed to help pay for the medical expenses of multiple people. |
Many insurers package bodily injury and property damage limits together. For example, your policy may look something like this:
- 25/50/10 ($25,000 BI per person limit, $50,000 BI per accident limit, $10,000 property damage limit), or
- 100/300/50 ($100,000 BI per person limit, $300,000 BI per accident limit, $50,000 property damage limit)
- 250/500/100 ($250,000 BI per person limit, $500,000 BI per accident limit, $100,000 property damage limit)
Your coverage limits depend on the packages your insurer offers. In other words, you may not be able to choose individual limits for bodily injury or property damage coverage.
How much does car liability 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. Your insurer can tell you how much your coverage will cost if you adjust your limit.
What does liability insurance not cover?
Liability coverage in auto insurance typically doesn't pay to repair damage to your own car after an accident – collision coverage helps with that. It also doesn't pay to repair damage caused by other factors, such as hail – that's where comprehensive coverage comes in.
While liability coverage helps pay for the medical costs of someone you injure, it doesn't pay for your own injuries. That's why you may want to consider medical payments coverage or personal injury protection, depending on which state you live and drive in.
Reach out to your insurer if you have questions about liability car insurance or your state's coverage requirements.
Get liability car insurance with Allstate
Meet your state’s liability insurance requirements and add collision, comprehensive, and other coverage options with Allstate today. Get a quote online or call 866-340-2084 for a quote.
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