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Liability Car Insurance

Liability car insurance | Save on your policy by finding cheaper quotes for liability car insurance from state providers now. We show you how and where to save on your next policy. You can switch carriers anytime and start saving.

What Is Liability Car Insurance?

What is liability car insurance and how does it work. Liability car insurance is the part of your policy that is mandated by state law. If you own and operate a private passenger vehicle then you must carry liability car insurance. Liability car insurance is what makes having insurance a legal necessity. Liability car insurance pays a third party victim of injury and or property damage if you cause or are deemed to have caused an accident.

liability car insurance quotes

liability car insurance quotes  From the perspective of state law - you are required to carry liability car insurance in case you cause injury to others, such that others may be compensated for this. In this sense, you are required to hold liability car insurance in order to protect other people from the risk associated with your operation of a motor vehicle.


liability car insurance quoteFrom the perspective of your own self interest - liability car insurance protects you against the financial consequences of being sued for these damages caused. Your insurance company takes over this financial risk in exchange for your payment of a liability car insurance premium.

Each state has it's own requirement for liability car insurance, that is a minimum amount of coverage that you must hold under the law. The amount of coverage is known as a dollar limit of liability and reflects the maximum amount that the insurer would payout in the event of a claim.

In practice, many drivers choose to increase the amount of their liability car insurance limits in exchange for an increased premium - the cost of your liability car insurance coverage. Drivers do this in order to safeguard their assets from the consequences of a lawsuit.

Raising the amount of liability car insurance beyond the state minimum mandated level provides you increasing financial protection for the consequences of a claim against you.

Your liability car insurance is designed to pay another person/s if you cause the accident. If you are involved in an accident that was not your fault, caused by the other driver, then that persons liability car insurance is what pays for your damages or injury.

In each state, a policy having minimum levels of what is liability car insurance only might be referred to as a Basic Policy. Liability car insurance is the mandatory part of a policy. A Standard Policy describes a policy that is the typical recommendation of insurers. Such policies normally increase the minimum liability car insurance limit and contain further additional and optional (not mandatory) coverages designed to provide you with financial protection for your own vehicle against a whole range of scenarios that the law is not concerned with.

What Does Liability Car Insurance Cover? 

What Does Liability Car Insurance Cover

On your policy, liability car insurance is expressed as and covers:

  • Bodily Injury Car Insurance Liability (each person / each accident)
  • Property Damage Car Insurance Liability (each accident)

The Limits of Liability Car Insurance are fixed sums of money or dollar amounts that the insurer will pay out to a maximum or "Limit".

The limits of liability car insurance are typically indicated as a set of three dash separated figures, for example: 15/30/5. In this example the figures mean:

Bodily Injury Car Insurance Liability $15,000 each person/$30,000 each accident.

Property Damage Car Insurance Liability $5,000 each accident.

An average standard policy offering might reflect 100/300/100. In such case, the limits of liability car insurance have been increased beyond the minimum required by law.

Drivers often choose to increase their liability car insurance coverage above what the law requires in order to better protect themselves financially, since in many cases the state mandated minimum does not provide adequate protection when considering the risk. Liability insurance protects you against numerous risky scenarios. 

Liability Insurance Car Claims

An example of a bodily injury liability insurance car claim is where your insurer pays a third party claimant a sum of money awarded to that claimant in a court case. Without you holding any or sufficient liability car insurance you will be liable to pay the claimant yourself. Your insurer takes over this risk to you when you purchase liability car insurance. Property damage car insurance liability coverage deals with non physical injury claims.

Car insurance liability coverage for property damage exists to protect you against the financial consequences of a claim against you for damage to another person or entity's property. An example might be where you are sued for the cost of another persons vehicle written off in an accident caused by you. Alternatively, if you crashed into a utility pole and was sued by the utility company for the consequences, your liability car insurance steps in to protect you financially.

Liability Car Insurance Quotes

Car insurance liability only insurance quotes may be obtained. Liability car insurance quotes are available as a separate and individual component of any policy, basic through full coverage. As such, the cost of liability car insurance is easily identified. Some drivers seek only liability car insurance quotes since they do not require or desire optional coverages like collision and comprehensive. It is important to realize that liability car insurance alone in many cases is wholly inadequate, even if you choose to increase the limits beyond state minimum. Liability car insurance is not concerned with what happens to your own car in the event of an accident or collision that you cause, it does not protect you against theft if your car is stolen and many other perils. Coverages designed to help protect you from your own car related risks are optional but commonly taken up. A standard, beyond basic policy as offered and recommended by insurers goes far beyond cheaper liability car insurance only to help safeguard your own auto against collision, theft and more. Nevertheless, some drivers really only need liability car insurance. Next we consider how to get cheap quotes for liability car insurance.


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