SPCMax Insurance What Liability Covers
Liability-Only Car Insurance
Liability coverage protects you financially when you're responsible for injuring someone or damaging their property in a car accident. It pays for their medical bills, lost wages, and vehicle repairs—but not your own.
What is Auto Liability Insurance?
Most states require drivers to carry liability insurance, which includes bodily injury and property damage coverage. Bodily injury liability pays for injuries you cause to other drivers, passengers, or pedestrians in an accident you cause. Property damage liability covers damages to another person's vehicle or property resulting from your at-fault accident. Together, these coverages protect others when you're responsible for a collision.
When you purchase your auto policy, you'll select coverage limits for bodily injury and property damage liability. These limits are shown as a split limit—for example, 25/50/25 means your insurer pays up to $25,000 per person and $50,000 per accident for injuries you cause, plus up to $25,000 for damage to another person's vehicle or property like a fence, house, or mailbox.
Is Auto Liability Coverage Required?
Bodily injury liability and property damage liability are required in nearly all U.S. states, with specific minimums varying by location. While you must meet your state's minimum requirements, purchasing higher limits provides stronger financial protection if you cause significant injuries or damage in an accident.
How Much Liability Car Insurance Should I Buy?
Consider purchasing liability limits that align with your assets and income level. Higher coverage limits provide better protection against significant claims, and the cost increase is often modest compared to the financial security gained.
When liability limits fall short of actual damages, you become personally liable for the difference. Higher coverage limits protect your assets from potential lawsuits and wage garnishment if a claim exceeds your policy's maximum payout.
What Doesn't Auto Liability Insurance Cover?
Auto liability insurance does not cover:
• If your vehicle is damaged in an accident that is your fault, you would need to purchase collision coverage to protect it.
• Damages to your vehicle caused by animals, fire, theft, vandalism, or weather. You must purchase comprehensive coverage to protect your vehicle from these things.
• Injuries to you and your passengers require separate coverage. Personal injury protection (PIP) or medical payments (MedPay) coverage protects your medical expenses and those of your passengers following an accident.
• Injuries to you and your passengers beyond the at-fault driver's policy limits require Uninsured/Underinsured Motorist coverage to protect against medical expenses from accidents involving drivers without adequate insurance.
Your vehicle damage from at-fault accidents requires collision coverage. Animal collisions, fire, theft, vandalism, and severe weather damage need comprehensive coverage—neither is included with liability insurance.
How is the Cost of Liability Insurance Determined?
The cost of your auto liability insurance is based on:
•Your driving record: Auto insurance companies will look at your driving history to look for accidents, moving violations, and other claims that you may have on your driving record.
• Your age
• Where you live
• Your credit score (in some states)
• The amount of coverage that you want to buy
• The type of vehicle that you drive
You can get quotes from multiple insurance companies online or by speaking with a licensed agent to find the best rates for your liability coverage needs. Comparing quotes helps you secure competitive pricing on the protection that's right for you.
How Can I Save on My Liability Car Insurance?
When you compare car insurance premiums, always ask about discounts you may qualify for. Many insurers offer discounts for paying your premium in full or setting up automatic payments. You can also enroll in telematics programs that track your driving habits through a smartphone app or vehicle device. Additional discounts may apply if you've completed a defensive driving course, maintain good grades, own a home, or serve as a veteran. Contact your insurance company or agent to learn which discounts you're eligible for and secure the most competitive rates without reducing your coverage.
An account discount is one of the largest discounts available on your auto insurance policy. This discount applies to your car insurance when you bundle your homeowner's or renter's insurance with the same insurance company. Ask your insurance company or agent to quote both lines of coverage together to receive this discount.
Liability Car Insurance FAQs
Q: What does liability insurance cover?
A: Liability insurance covers bodily injury and property damage liability, protecting you financially when you're at-fault in an accident by paying for others' injuries and vehicle or property damage.
Q: Is liability insurance required?
A: All states require drivers to carry bodily injury liability and property damage liability coverage, with New Hampshire and Virginia as the only exceptions.
Q: What is not covered by liability car insurance?
A: Liability insurance does not cover damages to your vehicle or injuries to you and your passengers in an at-fault accident. You'll need collision, comprehensive, and personal injury protection coverage for those losses.