Car Insurance

Liability Car Insurance

May 11, 2026By GEICO Team8 min readEditorial Guidelines
An image of a white car that collided with a blue car on the road

Key Takeaways

Liability Insurance Covers the Other Driver, Not You
Liability coverage pays for damage to another person's property and injuries to others when you're at fault. It does not cover your own vehicle repairs or medical bills. For that, you need separate coverages like collision, comprehensive, or medical payments.

Most States Require It, but Minimums May Not Be Enough
Nearly every state mandates liability insurance to drive legally. However, state minimum limits (like 25/50/10) can leave you personally responsible for costs that exceed your coverage. Use a coverage calculator to find limits that match your financial situation.

Know How Coverage Limits Are Structured Before You Buy
Liability limits are expressed as three numbers (e.g., 100/300/50): bodily injury per person, bodily injury per accident, and property damage per accident. Some insurers also offer a combined single limit. Understanding this format helps you compare policies accurately and avoid gaps in protection.

What is Liability Car Insurance?

Liability coverage in your car insurance policy pays for property damage and/or injuries to another person caused by an accident in which you're at fault. Most states require this type of auto coverage to legally drive your vehicle.

Auto liability coverage typically refers to two types of coverages: property damage and bodily injury.

  • Property damage coverage pays for damage to another person's property
  • Bodily injury coverage provides payment for others injured in an accident

We can help you get the liability car insurance coverage you need.

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Liability Car Insurance Coverage

Liability coverage includes property damage (PD) and bodily injury (BI) coverage.

Property Damage Liability Coverage

Property damage liability coverage insures against damage to another person's property caused by your vehicle. This includes:

  • Repairs to the other driver's vehicle
  • A rental vehicle while the other person's car is being repaired
  • Damage to buildings, fences, or other structures
  • Damage to personal property, such as electronics or belongings inside a vehicle
  • Legal fees if you're sued for property damage
  • Other miscellaneous costs related to the property damage incident

Bodily Injury Liability Coverage

Bodily injury liability coverage helps pay expenses for injuries sustained by another person in an accident. This can include:

  • Medical bills
  • Prescriptions
  • Lost wages
  • Pain and suffering
  • Legal fees if you're sued for injuries you caused

States may have different requirements on who can file a bodily injury claim against you.

What Does Liability Insurance Not Cover for an Auto Accident?

Car insurance liability coverage helps cover damage you're responsible for to another party because of an accident. It doesn't cover damage to your property or your injuries. Your damage and injuries are protected under other coverages such as:

How Much Does Liability Coverage Cost?

The cost of liability insurance coverage as part of your auto insurance policy depends on many factors. This can include things like how much coverage you select. For example, higher coverage limits may cost more.

  • Tip: There are a variety of different liability coverage limits, usually expressed as three numbers, such as 25/50/10. These numbers indicate the coverage for bodily injury per person ($25,000), bodily injury per accident ($50,000), and property damage per accident ($10,000).

Do I Need Liability Car Insurance?

Yes. Most states require liability insurance to legally drive your vehicle. The required limits vary by state. You may see the coverages required by your state on the state information pages.

Liability insurance also helps protect you by paying for covered damage and injuries, up to your limits, in at-fault accidents. If you don't have enough liability coverage, expenses above your limits may have to be paid out of pocket, so be mindful when choosing a limit that is right for you.

How Much Liability Coverage Do I Need?

Liability coverage should be personalized to fit your needs. It's not one-size-fits-all. Our coverage calculator can help you walk through a few questions and provide you with a recommendation.

Understanding Liability Auto Coverage Limits

Understanding liability coverage limits is an essential aspect of deciding how much coverage you need and safeguarding your financial security. The amount your insurer will pay on your behalf after a covered liability claim is subject to the coverage limits you select. While each state requires a minimum coverage amount for bodily injury liability and property damage liability, drivers can choose to purchase additional coverage to fit their needs.

What Are Property Damage Liability Limits?

Property damage liability limits indicate the maximum amount your insurance policy will pay for damage caused to someone else's property in the event of an accident you're found responsible for. For example, if you're in an at-fault accident in which you damage another person's car, your property damage liability coverage would kick in to cover these costs up to the limit you've chosen. Carefully selecting your limits is crucial because inadequate coverage could leave you personally responsible for repaying costly expenses beyond your coverage limits.

Bodily Injury Limits (Per Person)

Bodily injury limits (per person) are the maximum your insurance policy will cover for injuries sustained to another individual in an at-fault accident. This coverage will help pay for the medical expenses, rehabilitation, and potentially even the legal costs of a pedestrian or individual in another vehicle that you injured in an at-fault accident. Selecting appropriate limits is essential to ensure you have enough coverage to protect your financial well-being in the event of a significant accident.

Bodily Injury Limits (Per Accident)

Bodily injury limits (per accident) are similar to bodily injury limits (per person); however, they determine how much your policy will cover for injuries caused per incident in an at-fault accident rather than a singular person.

How Insurers Package Bodily Injury and Property Damage Limits Together

Many insurance providers combine bodily injury per person and per accident into a package, while some even offer combined single limits. Your policy might look something like this:

  • 25/50/10 ($25,000 BI per person limit, $50,000 BI per accident limit, $10,000 property damage limit)

OR

  • 100/300/50 ($100,000 BI per person limit, $300,000 BI per accident limit, $50,000 property damage limit)

OR

  • 300k Combined Single Limit, which provides coverage for both bodily injury and property damage under the same limit.

These limits depend on the liability insurance packages offered by your insurer. Your choice will influence the overall level of protection you have in place, so it's important to review and understand the packages available to you.

You may also want to consider an umbrella policy which provides additional coverage beyond your liability car insurance for more serious accidents and lawsuits.

How Does Auto Liability Insurance Coverage Work?

Learn more about the importance of having the right liability coverage as part of your GEICO car insurance policy.

Property Damage Liability Coverage

Whether you're a seasoned policyholder or just starting to explore insurance options, this video breaks down the importance of having the right property liability insurance coverage.

Bodily Injury Liability Coverage

This video is your guide to understanding how bodily injury liability coverage works to cover the medical expenses of others if you are at fault in an accident.

Get Liability Car Insurance With GEICO

Looking for affordable liability car insurance? Get a quick, personalized quote from GEICO today. Visit our website or call us at (800) 207-7847 to find coverage that meets your state's requirements and fits your budget. Get started now and drive with confidence!

Ready to Protect Your Car?

Get a fast, free auto insurance quote online.

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FAQs about Liability Car Insurance

If your damages exceed your liability coverage, you are personally responsible for paying the remaining amount out of pocket. This can include paying for medical bills, property damage, or legal fees if the other party sues.

Liability car insurance is required in most states. Only a few states, like New Hampshire and Virginia, allow drivers to operate vehicles without liability insurance, but they have alternative requirements, such as proof of financial responsibility.

You can increase your liability car insurance coverage anytime by contacting your insurance provider. Raising your coverage limits can offer greater financial protection in case of an accident and may be especially important if your assets or risk levels increase. Keep in mind that higher coverage limits will likely result in higher premiums.

Liability insurance typically covers rental cars, but only for damages or injuries you cause to others while driving the rental. It does not cover any damage to the rental vehicle itself, which would require additional coverage like a collision damage waiver or rental car insurance. It's important to check your policy or contact your insurer to confirm the specifics of your coverage.

You can have liability insurance on a financed car, but most lenders will also require you to carry comprehensive and collision coverage to protect their financial interest in the vehicle. Failing to maintain full coverage can result in your lender purchasing insurance on your behalf and adding the cost to your loan.

Personal liability car insurance covers injuries or property damage you cause while driving your vehicle for everyday, non-work purposes. Business liability car insurance, on the other hand, is designed for vehicles used for work tasks—such as deliveries, client visits, or transporting equipment—and provides higher coverage tailored to commercial risks.

Personal liability car insurance covers injuries or property damage you cause while driving your vehicle for everyday, non-work purposes. Business liability car insurance, on the other hand, is designed for vehicles used for work tasks—such as deliveries, client visits, or transporting equipment—and provides higher coverage tailored to commercial risks.