When it comes to auto insurance, liability only coverage is the most basic form of protection. It pays for any injuries or property damage you may cause in an accident with fault up to the limits listed in your policy. This type of insurance covers damage to the property and personal injuries of a third party in the event of an accident, but it won't cover your own injuries or property damage. Liability insurance coverage is designed to protect you financially if you're responsible for someone else's injuries or property damage. It's a standard feature of most vehicle and property insurance policies, including auto and homeowners insurance.
For car insurance, it's usually referred to as auto liability coverage, while for property insurance it's generally referred to as personal liability coverage. Most states require residents to have more than just liability insurance to drive, so it's often referred to as “minimum coverage”. Some landlords and lenders may also require you to have renters insurance, which also includes personal liability coverage. Liability coverage limits for different types of vehicles are usually represented by three numbers. Your insurance company will work with the other driver's insurance company to determine who is at fault (if you live in a no-fault state). These are average rates and your rate will vary depending on your personal details, the state and the insurance provider.
If you suffer injuries and property damage from an accident caused by another person, your liability coverage will cover the associated costs. Without liability coverage, you have to pay these bills yourself, something that most people would have a hard time paying. To get a better idea of how much you could pay for liability insurance with the lowest possible limits (or minimum coverage if your state requires more than liability insurance), check out the two tables below, or check out NerdWallet's article on the cheapest car insurance. Choosing a car with important safety features can also help lower your car insurance premiums, even if you have insurance coverage that is higher than the minimum. In addition, if you frequently use a car-sharing service, rent vehicles, or want to maintain continuous coverage, you can also look for car insurance for people who are not homeowners. That's why every state requires at least some liability coverage (with the exception of Virginia and rural Alaska) or proof that you have enough cash to pay for the worst situations.
This coverage is normally called general liability insurance and must be purchased separately from any personal vehicle or property insurance. Collision coverage and comprehensive coverage (not to mention other optional coverages such as medical payment coverage and personal injury protection) cannot be purchased until you have adequate liability insurance. When shopping for auto insurance, it's important to understand what type of protection you need. Liability only auto insurance is the most basic form of protection available and covers any injuries or property damage you may cause in an accident with fault up to the limits listed in your policy. It won't cover your own injuries or property damage, but it will protect you financially if you're responsible for someone else's injuries or property damage. It's important to note that most states require residents to have more than just liability insurance to drive, so it's often referred to as “minimum coverage”. To get a better idea of how much you could pay for liability insurance with the lowest possible limits (or minimum coverage if your state requires more than liability insurance), check out NerdWallet's article on the cheapest car insurance. Finally, if you frequently use a car-sharing service, rent vehicles, or want to maintain continuous coverage, you can also look for car insurance for people who are not homeowners.
This type of general liability insurance must be purchased separately from any personal vehicle or property insurance.
