The two parts of liability coverage
- Bodily injury liability helps pay for other people's medical bills, lost wages and legal costs if you injure them in an accident you cause.
- Property damage liability helps pay to repair or replace other people's property, such as their car, a fence or a building.
Liability coverage does not pay to repair your own car or treat your own injuries. That is what collision, medical payments, PIP and uninsured motorist coverage are for.
How to read liability limits
Limits are often written as three numbers, such as 50/100/50, each in thousands of dollars:
| Number | What it limits |
|---|---|
| First | Bodily injury paid per person |
| Second | Total bodily injury paid per accident |
| Third | Property damage paid per accident |
If the cost of an accident you cause goes beyond your limits, you may be personally responsible for the difference.
State minimums vs. higher limits
Each state sets its own minimum limits, and they change from time to time. Minimum limits keep you legal, but they can be low compared with the cost of a serious accident or a newer vehicle. Many drivers choose higher limits to protect their savings and future income.
An agent can tell you your state's current minimums and quote a few higher levels side by side.
Who liability-only coverage can suit
Liability-only policies are common for older cars that are paid off, where the car's value is low compared with the cost of collision and comprehensive. If your car is financed or leased, your lender will usually require more than liability. See full coverage.
Questions
Does liability insurance cover my own car?
No. Liability pays for damage and injuries you cause to others. Damage to your own car is covered by collision or comprehensive, if you have them.
Is the state minimum enough?
It meets the legal requirement, but it may not cover a serious accident. An agent can compare quotes for the minimum and for higher limits so you can decide.
What happens if I drive without liability insurance?
In most states it can lead to fines, license or registration suspension, and an SR-22 requirement, and you could be personally responsible for damages.
