Glossary
Liability Coverage
The portion of an auto policy that pays for damage or injuries you cause to others.
What is liability coverage?
Liability coverage is the foundational layer of every auto insurance policy. It pays for the other party’s damage and injuries when you’re at fault in an accident — but it does not pay for your own car or your own injuries.
Details
Liability has two components: bodily injury (pays for the other party’s medical bills, lost wages, pain and suffering) and property damage (pays for the other party’s vehicle and other damaged property). Most states require minimum liability coverage by law, but state minimums are typically far below what most drivers need.