What does auto liability insurance cover? 

Auto liability insurance helps protect you financially if you're found responsible for injuring someone or damaging their property in a car accident. 

Here's what it covers:

  • Bodily injury liability
  • Property damage liability

It's important to note that auto liability insurance typically doesn't cover your own injuries or damage to your own car. For that, you will need other types of coverage like personal injury protection (PIP), collision insurance, and comprehensive insurance.

The minimum coverage requirements vary from state to state, so it's essential to know what your state mandates and consider getting coverage beyond the minimum insurance, as accidents can lead to expenses that exceed the basic coverage limits.

What is bodily injury liability?

Bodily injury liability car insurance is a type of auto insurance coverage that provides protection for the policyholder in the event they are found legally responsible for causing injuries to other people in a car accident. This coverage helps pay for medical expenses, rehabilitation, and sometimes even lost wages of the individuals injured in the accident, up to the policy limits.

What is property damage liability?  

Property damage liability car insurance is a type of coverage that helps protect you financially if you are found responsible for damaging someone else's property in a car accident. This coverage typically applies to damage caused to another person's vehicle or other types of property, such as fences, buildings, or other structures.

Final thoughts 

In most states, liability insurance is a legal requirement. It ensures that you can cover the financial consequences of causing harm to others while driving. Driving without liability insurance can result in legal penalties and consequences. 

While liability insurance is important, it only covers damages you cause to others. Consider additional coverages like collision and comprehensive insurance to protect your vehicle from various risks, such as accidents, theft, or natural disasters.


Insurance Information Institute. “Auto insurance basics.” Accessed February 2024. 

Auto insurance FAQs

Do I need liability insurance?

You need liability insurance if you drive a car. It's required by law in most states, and it protects you financially if you cause an accident where someone is injured or their property is damaged. Without it, you will be held responsible for medical bills, repair costs, and legal fees, which can be very expensive.

How much liability coverage do I need? 

The amount of liability car insurance coverage you need depends on your state's minimum requirements and your personal financial situation. It's a good idea to get more coverage than just the minimum liability requirement to protect yourself against potential lawsuits and expenses in case of a severe accident.