Liability Car Insurance

Liability car insurance is coverage that helps protect you financially when you’re legally responsible for causing injuries or property damage to others in a covered car accident. It generally includes two types of coverage: bodily injury liability and property damage liability.

Most states require drivers to carry a minimum amount of liability insurance, although requirements and coverage limits vary by state. The amount of liability coverage you need and what you’ll pay for it can vary based on your state requirements, coverage limits, insurance company, and other factors.

Freeway works with multiple insurance companies, giving you more choices when comparing liability coverage. A licensed Freeway agent can help you understand your state’s requirements and compare car coverage and pricing based on your needs and budget.

Liability car insurance generally covers two types of losses you may be responsible for after causing a covered accident: injuries to other people and damage to their property.

Bodily Injury Liability Coverage

Bodily Injury (BI) liability coverage may help pay for another person’s medical and emergency expenses, ongoing medical or rehabilitation costs, lost wages, pain and suffering, and legal expenses if someone sues you over a covered accident. Covered individuals may include other drivers, passengers, pedestrians, and, depending on the circumstances and policy, passengers in your own car.

Property Damage Liability Coverage

Property Damage (PD) liability coverage may help pay to repair or replace property you are legally responsible for damaging. This includes another person’s vehicle, fences, mailboxes, buildings, guardrails, and other structures.

Liability insurance generally doesn’t pay for:

Liability insurance can help protect you, the insured, from financial responsibility when you’re legally liable for covered injuries or property damage. Payments generally go toward covered losses suffered by other people rather than your own injuries or vehicle damage. Policy terms determine which drivers the policy covers when they operate the covered vehicle. Coverage for passengers depends on circumstances, policy language, and state law.

Liability car insurance may apply when you’re legally responsible for injuries or property damage resulting from a covered accident, subject to your policy terms and limits. How fault is determined and how claims are handled can vary by state.

In no-fault states, certain injury-related expenses may initially be covered by first-party coverage, such as Personal Injury Protection (PIP), depending on state law. No-fault rules don’t mean liability insurance covers damage to your own vehicle.

Liability coverage generally doesn’t require a deductible. If you’re legally responsible for a covered accident, liability insurance may pay covered damages up to your policy limits without requiring you to pay a deductible first.

Other coverages on your auto policy, such as collision and comprehensive, typically have separate deductibles.

Liability limits define the maximum amount your insurer can pay for a covered claim. Many policies use split limits, expressed as three numbers, for example, 100/300/100, which means:

Most states require drivers to carry minimum amounts of liability insurance or otherwise meet state financial responsibility requirements. The specific coverages and limits vary by state.

Meeting your state’s minimum requirement doesn’t necessarily mean you’ll have enough financial protection after a serious accident. If covered injuries or property damage exceed your liability limits, you may be responsible for the remaining costs. Check your state’s current auto insurance requirements before choosing your liability limits.

The cost of liability auto insurance varies by driver, insurance company, location, coverage limits, and other rating factors permitted in your state. Choosing higher liability limits may increase your premium, but can provide more financial protection if you’re responsible for a serious accident.

Because rates can vary between insurance companies, comparing quotes can help you look for more affordable liability coverage. When comparing quotes, use the same liability limits to make a more accurate comparison.

Freeway works with multiple insurance companies, giving you more choices when comparing liability coverage and pricing based on your needs and budget.

Choosing liability limits involves balancing the cost of coverage with the amount of financial protection you want. A Freeway agent can help you understand available liability limits and compare options from multiple insurance companies based on your needs and budget. When deciding how much liability coverage to carry, consider:

If a claim exceeds your liability limits, your policy may pay up to the applicable limit, and you may be personally responsible for the remaining costs. For example, if you have $50,000 in property damage liability coverage but cause $70,000 in property damage, your insurance may pay up to $50,000, and you may owe the remaining $20,000 out of pocket. Drivers who want additional liability protection may consider higher liability limits or, where appropriate, an umbrella policy.