Liability car insurance includes bodily injury (BI) and property damage (PD) coverage. It helps cover medical bills and repair costs for others when you’re at fault in an accident. Additionally, it supports your legal defense if you’re sued because of the accident, protecting you from major financial risks.
Bodily injury liability covers medical costs for others injured in an accident you or someone on your policy cause. It also helps pay legal fees if you’re sued, protecting you from high expenses related to injuries and lawsuits following the accident:
Imagine you’re at fault in a rear-end crash. No serious injuries, but the other driver reports wrist pain and a passenger has a forehead cut. An ambulance takes them to the ER, and your insurance covers their medical bills, ensuring they get care while protecting you from out-of-pocket expenses.
Property damage liability coverage helps pay for damage you cause to someone else’s property in a car accident. It’s required in most states and protects your finances if you're at fault.
This coverage usually applies to vehicles, but it can also include things like fences, mailboxes, buildings, or signs—helping cover repair or replacement costs:
You rear-end a car that hits a mailbox. Property damage liability covers repairs for the other car and mailbox, up to your policy limit. It doesn’t cover your car but helps protect your finances from costs tied to damage you cause in an accident.
Most U.S. states require liability car insurance, which includes both bodily injury and property damage coverage. In Florida, drivers must also carry personal injury protection (PIP) to cover medical costs for themselves and their passengers, regardless of who’s at fault. Additionally, Florida's SR-22 law mandates bodily injury liability coverage for high-risk drivers.
Having only the minimum may not be enough. Medical bills and repair costs can add up fast. Choosing higher coverage limits helps protect your finances in serious accidents. If you drive for work, own business vehicles, or ride a motorcycle, you may also need specific liability policies to stay legally protected.
You need to meet your state’s minimum bodily injury liability limits, but opting for higher limits offers better financial protection. Liability limits show the maximum your insurer will pay if you cause an accident.
Limits are shown as two numbers—for example, $25,000/$50,000. The first number ($25,000) covers injuries or death to one person in an accident. The second ($50,000) is the total amount available for all injured parties in the same accident. Choosing higher limits can help protect your assets if costs exceed minimum requirements.
Liability insurance does not cover your own medical bills or vehicle repairs. If you have only liability coverage and get into an accident, you’ll pay these expenses out of pocket. Additionally, if your car is stolen or vandalized, you’re responsible for repair or replacement costs. To protect yourself financially, consider adding medical payments coverage plus comprehensive and collision insurance.
Liability-only insurance is the most basic type of coverage available for your vehicle. It keeps your insurance costs low but may not suit every driver. If you’re leasing or financing your car, the lender will likely require you to carry coverage beyond minimum liability. However, if you drive less frequently or have an older vehicle that’s fully paid off, liability-only coverage might be a practical choice to save money.
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