Liability coverage is a core part of many car insurance policies. It is designed to help cover certain costs when an insured driver is legally responsible for injuries or property damage to others, subject to policy terms and limits.
## Bodily injury and property damage
Bodily injury liability may help cover eligible costs related to injuries caused to other people. Property damage liability may help pay for damage to another person’s vehicle or property. Exact definitions and covered expenses depend on the contract and local law.
## Understand policy limits
A policy limit is the maximum amount the insurer will pay for a covered category of loss, subject to the policy. If damages exceed the available limit, the driver may face additional financial responsibility. Consider your assets, income, and local requirements when choosing limits.
## Liability is different from vehicle damage coverage
Liability coverage generally does not pay to repair the insured driver’s own car. Collision coverage may address covered collision damage to your vehicle, while comprehensive coverage may address certain non-collision events.
## Review exclusions and rules
Policies can contain exclusions and conditions, and legal requirements differ by jurisdiction. Read your declarations page and policy wording carefully. Ask an insurer or licensed professional to explain unfamiliar terms.
Choosing suitable liability limits is an important part of managing driving risk. Compare quotes on an equal basis and avoid assuming that the minimum legal limit will be sufficient for every situation.