Liability insurance covers property damage and bodily injuries that you may cause other drivers in the event of an accident. Essentially, it protects you, the insured, from liabilities caused by lawsuits or claims that fall within the coverage of your insurance policy.

Liability coverage usually has two different components, and they are often bundled together—bodily injury insurance and property damage insurance. Bodily injury liability insurance coverage protects you if you are found to be at fault in a traffic collision and covers personal injuries experienced by you or your passengers. If you are in a collision, and are found to be at fault, then property damage liability insurance will cover you in case of damage to the other party’s property or vehicle. 

It is extremely important to have liability insurance. If you cause a collision that in turn causes the injury or death of another driver, your bodily injury liability insurance will offer them recompense. Likewise, if you cause damage to another motorist’s vehicle, your property damage liability insurance will pay for the cost of repair. If you happen to be sued by another party, then liability insurance is essential.

It is illegal to drive in the U.S. without liability insurance, though how much you need does vary from state to state. If you would like to find out the minimum liability insurance amount required in your state, visit our state overview page.

As long as you purchase the minimum amount of liability coverage required by your state, you can select limits to determine the maximum amount of money that your insurance company will pay if you are in an accident. If you are unsure of what limits to set, talk to your car insurance provider. They will help you come to a number that works for you.

If you want to drive in the United States, then you need to purchase liability insurance. There’s just no way around it. Buying insurance doesn’t have to be a hassle, however. By using Save Today’s quote finder, you can find the best car insurance quotes by comparing different providers side by side.