What Is Liability Car Insurance?
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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