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Everything You Need to Know About Liability Insurance

Car accident

If you own and operate a vehicle, you need to know about liability insurance. Most states require drivers to carry some type of liability coverage.  

In the event that you’re responsible for an accident that damages someone else’s vehicle or property, this type of insurance can help cover the cost of repairs or medical bills. Without liability insurance, you could be held liable for thousands of dollars in damages, so it’s essential to ensure you have the coverage you need.  

Learn everything you need to know about liability insurance, including the two types available and why you should purchase it even if it’s optional in your state. 

What Is liability insurance?

Liability insurance includes bodily injury liability coverage and property damage liability coverage. If you cause an accident, liability insurance provides financial protection by helping you cover the costs of damages to the other person or their vehicle. Most states require drivers to carry both types of coverage for optimal protection. 

What does liability insurance cover?

If you are the cause of an accident with another vehicle, liability insurance coverage can help you financially. Rather than having to pay out of pocket for the other person’s car damages, your insurance helps you pay. Additionally, liability insurance can help cover the cost of the other person’s medical bills, saving you thousands of dollars in some cases. The amount that your liability insurance covers depends on your policy, including your deductible, which you must pay before your insurance kicks in.

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Types of liability insurance

The two types of liability insurance are bodily injury liability coverage and property damage liability coverage. Both coverage types activate when you’re in an at-fault accident. Specifically: 

  • Bodily injury liability helps pay for medical bills if the other person involved in the collision is hurt. This includes medical tests and treatments for injuries relating to the accident.  
  • Property damage liability helps pay for car repairs if the other person’s vehicle is damaged in the collision. 

Because most states require both types of liability insurance, your coverage limits, or how much your insurance will cover, will depend on your state’s laws.  

However, you can purchase more coverage for greater protection and add liability to your policy even if your state doesn’t require it. For example, New Hampshire and Virginia don’t require drivers to carry car insurance. However, liability coverage is an option for those who want financial peace of mind while on the road.

Do I need liability insurance?

Yes, all drivers must carry some type and amount of liability insurance in most states. When selecting an insurance policy, it’s important to consider your state’s requirements to ensure you are adequately and legally covered in case of an accident.  

Even if liability insurance isn’t mandatory in your state, it is wise to carry some amount of coverage. Without liability insurance, drivers are required to pay for all bodily and property damage out of pocket, which is a financial burden for most people. Additionally, if the law mandates you to carry liability insurance and you choose to drive without it, it could result in hefty fines and severe penalties, including jail time in some states. 

Find affordable liability insurance

So, what is liability car insurance? Simply put, it’s a type of insurance that covers you in the event that you cause damage or injury while driving. At its core, liability car insurance is there to protect you financially if you cause an accident, and to cover the other person’s expenses in an accident they didn’t cause. Not only is liability insurance beneficial to drivers, but there is a good chance it is required by law in your state. 

If you want to be sure that you and your loved ones are taken care of financially in the event of an at-fault accident, it’s important to have liability car insurance. You can start by comparing quotes for liability insurance right here on our website.  

We make it easy for you to find the best rates from top-quality providers in your area. Submit your information and start comparing quotes to find the best liability insurance for the best price today! 

About Rate Retriever

At Rate Retriever, our mission is to make the way you shop for insurance transparent and fair through user-friendly tools that respect your privacy and deliver reliable, comprehensive results 

So we took everything we hated about comparing insurance quotes online – the spam, the long questionnaires, the limited choices, the inaccuracy of quote prices – and threw it out the window, favoring a short form that more accurately estimates what you’ll pay at each of the top insurance providers near you. 

Rate Retriever is an independent company that is not owned by an insurance provider, nor do we provide insurance ourselves. This independence allows us to be your free and impartial insurance research tool, helping you make the best decisions for your insurance needs.  

We may earn a commission when you click one of the links or call one of the providers listed on our site; however, we do not allow our partnerships to influence which information we provide. 

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