What liability auto insurance covers
Liability auto insurance is the type of coverage that pays for personal injury and property damage you cause to other people and their belongings. It is mandatory in most states because it protects victims and shields drivers from financial ruin.
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Key components of liability coverage
Liability splits into two main parts: bodily injury liability (BIL) and property damage liability (PDL). BIL covers medical expenses, lost wages, and legal fees for injured parties, while PDL pays for repair or replacement of another vehicle or any other property you damage.
How limits work
Each component has a limit expressed as a dollar amount, for example 25/50/15, meaning $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $15,000 for property damage. Higher limits provide more protection but increase premiums.
When liability does not pay
Liability does not cover your own injuries, vehicle repairs, or damage caused by intentional acts. For those gaps you need personal injury protection (PIP), medical payments, or comprehensive/collision coverage.
Comparing liability options
| Coverage | What it pays | Typical use |
|---|---|---|
| Bodily Injury Liability | Victim's medical costs, lost wages, legal fees | Required by law in most states |
| Property Damage Liability | Repair/replacement of others' property | Required by law in most states |