Liability Car Insurance Coverage Explained

Liability car insurance only covers the damages you cause to another person's vehicle or property and any injuries they may incur due to an accident in which you are at fault.A-MAX Insurance can help you compare liability insurance only options from multiple carriers to find the right fit. 

What is Auto Liability Insurance?

Most states require drivers to carry liability insurance or otherwise meet financial responsibility requirements. This typically includes liability insurance only, which covers bodily injury liability and property damage liability for others if you cause an accident.

With A-MAX Insurance, you can easily understand and customize your liability car coverage based on your state requirements.

Bodily injury liability coverage will pay for the injuries you cause to another driver, their passengers, or a pedestrian in an accident that is your fault. Property damage liability coverage will pay for the damages you cause to another person's vehicle or property in an accident that you cause. These two coverages comprise the liability insurance coverage portion of your auto insurance policy because they respond to things you are liable for when you cause a car accident.

Together, these make up liability only car insurance, which protects you from financial responsibility for damages you cause.

When you purchase your auto policy, you will select the limits that you want to carry on your policy for bodily injury liability coverage and property damage coverage. These limits will be represented as a split limit. For example, if you carry a split limit of 25/50/25, your insurer will pay up to $25,000 per person and $50,000 per accident for injuries you cause to another driver, their passengers, or a pedestrian. The policy will cover up to $25,000 for the damage you cause to the other person's car or other property, such as a fence, stone wall, house, mailbox, etc.

Liability Car Coverage vs Full Coverage Insurance

Understanding the difference between liability only car insurance and full coverage helps you choose the right protection.

Liability car coverage pays for damages and injuries you cause to others. In contrast, full coverage typically includes liability plus collision and comprehensive protection for your own vehicle.

If your car is financed or leased, your lender will usually require full coverage. But if you fully own your car and want to reduce monthly costs, liability insurance only may be a suitable alternative. Always weigh the savings against the risk of paying for your own repairs.

A-MAX Insurance helps you compare both options side by side so you can confidently choose the right level of protection.

Is Auto Liability Coverage Required?

Bodily injury liability and property damage liability are required in all states in the U.S. except New Hampshire and Virginia. Each state has its own required amount of liability coverage that a driver must purchase to legally drive. You must purchase at least the minimum amount of coverage required, but you should consider purchasing additional liability coverage if you can afford it to avoid a financially devastating situation if you cause more damage or injuries than your policy limit will cover.While minimum limits keep you legal, higher liability car coverage limits provide stronger financial protection if you cause a serious accident.

A-MAX Insurance can guide you through your state’s minimum requirements and help you stay compliant.

Who Should Consider Liability-Only Car Insurance?

Liability only car insurance is a practical option for drivers who want to meet legal requirements while keeping costs low. You may benefit from liability insurance only if your vehicle has a lower market value or if you can afford to cover your own repair costs out of pocket.

This type of liability car coverage is also common among drivers who own older vehicles, do not drive frequently, or want a budget-friendly solution to stay compliant with state laws. 

However, it’s important to understand that while this coverage protects others, it does not cover your own vehicle or injuries.

How Much Liability Car Insurance Should I Buy?

You should purchase as much liability car coverage as you can afford. Raising your liability limits is typically inexpensive, and having higher limits can help you avoid having to pay extra out-of-pocket to settle a claim if your policy limits are insufficient.

If your liability only car insurance limits are too low, you may have to pay the remaining costs out of pocket after an accident. Higher limits can significantly reduce your financial risk and legal exposure.

Carrying higher liability limits can significantly reduce your risk of out-of-pocket costs and legal exposure if you cause an accident. If you cannot cover the remaining costs, a court may allow your assets to be used to pay the claim or your wages may be garnished.