Protection for damage you cause to others
The simple answer
Auto liability coverage can pay covered claims for another person's injuries or property damage when an insured is legally responsible for a crash. It can also provide a legal defense for a covered claim. It generally does not repair your own car or pay your own injuries.
Bottom line
Liability protects you against covered claims from other people; it is not full protection for your own losses.
A real-world example
How 100/300/50 limits work
- 1.$100,000 bodily injury limit for one person
- 2.$300,000 bodily injury limit for everyone injured in one accident
- 3.$50,000 property damage limit for one accident
These are maximums, not promised payments. If several claims share a limit or damages exceed it, the insured may face uninsured exposure.
See the difference
Liability may cover
- Another person's covered medical damages
- Another person's lost income or other recoverable damages
- Damage to another vehicle or property
- Defense costs for a covered lawsuit
Liability generally does not cover
- xRepairing your own car
- xYour own medical expenses
- xIntentional damage
- xEvery driver or business use
- xAmounts above the available limits
Insurance words translated
Three terms to know
- Bodily injury liability
- Coverage for covered injury claims made by other people when an insured is legally responsible.
- Property damage liability
- Coverage for covered damage to another person's vehicle or other property.
- Split limits
- Separate limits for one injured person, all injured people in one accident, and property damage.
Plain-English guide 1
Bodily injury and property damage
Bodily injury liability addresses covered injury claims. Property damage liability addresses covered damage to vehicles, buildings, signs, fences, and other property.
The insurer investigates legal responsibility and coverage. Payment depends on damages, policy terms, exclusions, available limits, and state law.
Related guidance: Compare liability-only and full coverage
Plain-English guide 2
Why state minimums may be too low
A legal minimum is the least coverage allowed, not a promise that it can handle a serious crash. One newer vehicle, several damaged vehicles, or a significant injury can exceed a low limit.
Compare higher limits using actual quotes. The additional premium may be smaller than expected, but only the insurer can price your situation.
Related guidance: See why state minimums may be insufficient
Plain-English guide 3
Who is insured matters
Policies define who qualifies as an insured and how permissive drivers, household members, excluded drivers, newly acquired vehicles, rentals, and business use are treated.
Do not assume any person who borrows the car is automatically covered in every situation.
Related guidance: Understand uninsured and underinsured motorist coverage
Plain-English guide 4
Liability is only one part of a policy
Collision and comprehensive address covered damage to your own car. PIP or MedPay may address certain medical costs. UM/UIM can protect against drivers with no or insufficient liability insurance.
Review the complete declarations page rather than treating one liability limit as the whole policy.
Related guidance: Decode policy limits and sublimits
What to do next
Review your liability limits
- 1Translate each number on the declarations page.
- 2Check the per-person and per-accident injury limits.
- 3Compare the property limit with current vehicle costs.
- 4Ask who is insured and which uses are excluded.
- 5Request prices for several higher-limit options.
Translate your limits
Use the liability tool to understand split limits and compare common scenarios.
Open the limits toolImportant limits
Legal responsibility, recoverable damages, defense costs, exclusions, and minimum limits vary. Use your policy and state regulator as the controlling sources.
