Liability car insurance covers the other party’s injuries and property damage when you cause an accident. It’s the minimum coverage required to drive in almost every state — but it does not cover your own car or injuries.
Legally Required
By the Home & Dime Editorial Team · Updated 2026
Two parts
- Bodily injury liability — others’ medical costs.
- Property damage liability — others’ vehicle and property.
What it doesn’t cover
Your own car (needs collision) and your own injuries (needs MedPay/PIP).
Common exclusions
- Your own vehicle damage
- Your own injuries
- Damage above your limits (you pay the rest)
State considerations
Every state sets its own minimum liability limits; state minimums are often too low to cover a serious accident.
Claim tips
- Carry more than your state minimum if you have assets.
- Add collision/comprehensive to protect your own car.
- Consider an umbrella policy for extra liability.
Frequently asked questions
Is liability enough?
It’s the legal minimum, but often too low — add coverage for your own car and higher limits.
Does it cover my car?
No — that’s collision and comprehensive.
Related guides
Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.
Part of our Auto Insurance guide
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