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In most states, it is mandatory for a driver to have auto liability insurance. This includes bodily injury and property damage liability coverage. It is important for you, the driver, to know what this type of insurance entails. To summarize, liability coverage is when there is an accident and you are found to be liable. This helps pay for the other person’s medical and property expenses.

What is Bodily Injury Liability?

Blue car with its headlamp damaged

As mentioned prior, bodily injury liability coverage is mandatory in most states. In short, this type of auto liability coverage pays for any medical or treatment expenses of the other drivers, passengers, and other pedestrians if you are found liable for an accident. This includes:

  • Medical bills
  • Treatment expenses
  • Funeral expenses
  • Lost wages
  • Legal fees
  • Pain and suffering

Most states have determined a minimum and maximum amount of bodily injury liability coverage. However, it is recommended to purchase more than the minimum in case injuries exceed the amount of coverage.

What is Property Damage Liability?

Property damage liability is also mandatory in most states. This kind of auto liability coverage will pay for the damages that may be caused in an accident if you are determined to be at fault. This includes:

  • Vehicle
  • House
  • Office
  • Stores
  • Trees

Like bodily injury liability, property damage has a minimum amount for this kind of coverage. It is recommended to get more 

What is not covered with Auto Liability Coverage?

It’s also important to be aware of what might not be covered by your auto liability coverage. 

Bodily Injury Liability

This particular liability does not cover any of the medical costs that you and any of your passengers may incur at the time of an accident. Drivers may consider medical payments coverage as a part of their auto insurance policy. This particular policy may help pay you or your passenger’s medical expenses if you are injured in an accident, regardless of who is at fault.

Property Damage Liability

Property damage liability does not cover damages done to your own vehicle. It is
important for a driver to consider getting collision insuranceRed car that has been in an accident with the drivers side damaged as it helps pay to repair or replace you
r vehicle if it is damaged or destroyed in an accident regardless of who is at fault.


To cover your own medical and auto damages, you may have other insurances such as health insurance for your medical expenses or collision insurance to help repair your car. If you want more protection than collision and liability, you may be interested in buying full coverage car insurance. Full coverage refers to a combination of coverage types that include liability, comprehensive, and collision insurance.

Understanding Liability Insurance

It may be a good idea to increase your auto liability limits above the states minimum as any costs that exceed your liability coverage limits become your responsibility. It is important to understand what auto liability coverage looks like when talking to an agent. An example of how liability coverage is laid out is

  • 25/50/25
  • 25 is $25,000 of bodily injury per person limit meaning the maximum your insurer would pay to each person injured in an accident.
  • 50 is $50,000 bodily injury per accident limit meaning the maximum your insurer will pay for medical expenses that other people may incur from the accident that held you liable
  • 25 is $25,000 property damage limit meaning that that is the maximum amount your insurer would pay to repair the damage that was caused to another person’s property that held you liable.


Depending on how much liability insurance you decide to purchase, there are several key factors that can impact your premium including

  • Age
  • Driving record
  • Coverage types

Want To Learn More About Auto Liability Coverage?

If you are looking for the right auto coverages, Home & Auto Resources is here to help. Our team of experts want to provide you with the resources to make sure that you are properly insured in a case of an accident. Visit our website or contact us at (888) 535-2762!



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