AI Content Wizard – Meet your AI content strategic assistant. Try it now!


The Ultimate Guide to Liability Car Insurance

1078 words

Created by Stacey C, WriterAccess talent

Stacey C
Writer #5551
Joined 7/4/2012
View full profile
6 Star Rating
3989 Projects
23 Endorsements
0 Elite Skills
**Native US English Speaker **Also Studied Latin Stacey C. has a Master's Degree in Human Resources Development from Indiana State University, a Bachelor's Degree in Aviation and a Computer Science Minor. Her past work experience includes flight instruction and flight shop manager...

Do you have affordable liability car insurance? Liability auto insurance financially protects you by covering damages you cause to others during a car accident, including damage to the other person’s vehicle, medical expenses, and even legal fees if you happen if you’re sued. Required law in most states, and without it, you could be held personally and financially responsible for paying all the medical expenses and vehicle damage incurred by the other person. Let’s take a look at the details of liability auto insurance and its benefits.

Understanding Liability Car Insurance

Liability car insurance is a type of auto insurance that pays for the other person’s financial losses and medical expenses, including repair or replacement of the vehicle, any medical care the other driver or their passengers incurred during the accident, and any legal fees you incur if the other driver sues you.

Bodily Injury

Your liability insurance’s bodily injury clause helps pay for the other drivers and their passengers’ car accident-related injuries. If anyone in the other car had to go to the hospital or visit a primary care doctor or specialist, this coverage is what pays the medical bills.

Property Damage

If you hit another person’s vehicle, home, mailbox, or something else they owned, it’s covered by your liability insurance’s property damage clause. This coverage pays for the repair or replacement of the property that was damaged.

Legal Fees

While legal fees aren’t generally a separate specific clause in your insurance policy, most insurance companies will hire a lawyer on your behalf if the other driver sues you. You likely won’t even know you’ve been sued when this happens. The insurance company will simply hire the lawyer, defend the claim and pay any associated legal fees.

How to Choose the Right Liability Car Insurance

When purchasing a liability car insurance policy, you should consider several factors, including:

  • The minimum car insurance requirements for your state.
  • How much auto insurance coverage you can afford to pay each month for your premium.
  • How much your car costs and how much a potential accident might cost.
  • Your past driving history and how many accidents you’ve been in recently.

Get the Right Coverage Options

Once you have a good idea of how much liability insurance you need, it’s important to shop around for the best coverage at the most affordable price. This usually means getting quotes from several different insurance providers.

Frequently Asked Questions about Liability Car Insurance

Before you embark on the journey of getting a new liability car insurance policy, you may have questions. Here are a few questions we receive about liability car insurance and auto insurance in general.

Is it possible to add additional auto insurance coverage to my liability policy?

You can add more coverage to your liability-only car insurance coverage. In fact, it’s not typically recommended to just have a liability policy because it doesn’t cover your car if it gets damaged in an accident or your accident-related medical expenses. This means that most drivers should add comprehensive, collisions, and uninsured and underinsured car insurance coverages to their policy.

What is the difference between liability, collision, and comprehensive car insurance?

Many drivers get liability, comprehensive, and collision insurance confused. The truth is that these are all different types of coverage that can be added to your policy. Liability insurance only covers the other vehicle, the other driver, and any passengers in that vehicle. It does not pay for repairs to your car or any of your medical expenses. This type of insurance does not usually have a deductible.

Collision coverage covers your car and your injuries if you’ve been involved in an accident and the accident was determined to be your fault. You can expect collision insurance coverage to have a deductible. However, zero-deductible plans are sometimes available.

Comprehensive car insurance covers the cost of repairs or the replacement of your vehicle if it was damaged while not in use or parked. This coverage generally applies if your car was vandalized, stolen, or damaged by animals or a weather event.

How much liability car insurance do I need?

Your car insurance agent can help you in determining how much coverage you need. This is generally dependent on the rules and regulations regarding your state’s minimum insurance coverage, the average value of the vehicles in your area, your personal preferences, and your budget. Ideally, you’ll want to purchase liability insurance with enough coverage that it pays for the replacement costs of the average vehicle price and accident-related medical expenses in your area.

What happens if I refuse to get liability car insurance or can’t afford it?

If you don’t at least have liability insurance, you’re not legally allowed to operate your vehicle on public roads. This is because most states require at least a minimum amount of liability insurance so that you can afford to pay for the other person’s medical expenses and vehicle damage. Without insurance, you’ll likely be sued by the other driver or their insurance company, and you’d be forced to pay any judgments from your own finances. In addition to being forced to pay the other driver’s accident-related expenses, you may also face fines, the suspension of your license, and even jail time. Not to mention, once you get through all that, you’ll have an extremely difficult time finding affordable car insurance coverage in the future.

Tips for Saving Money on Liability Car Insurance

If you’re worried about the cost of your car insurance policy, there are some things you can do to make it more affordable.

  • Get a Multi-Line Discount – If you have other types of insurance with the same insurer, you may be eligible for a multi-line discount, sometimes referred to as bundling.
  • Increase Your Deductibles – If you also have collision insurance, raising your deductible can help reduce your monthly premiums.
  • Try for a Safe Driving Discount – If you haven’t been involved in an incident with your vehicle in several years, you may be eligible for a safe driving discount.
  • Driving Apps – Some insurance companies offer discounts if you install a tracker on your car or Smartphone that lets your insurance company monitor your driving habits.

It’s important to understand that all drivers must have a minimum amount of liability insurance. If you don’t have any insurance or you feel like your premiums are too high, give us a call. Our insurance agents can work with you to find a liability insurance policy that meets your needs and budget.

More samples from