Liability insurance pays for injuries or property damage you cause to other people. It is the most important coverage on most policies because it protects you from being personally on the hook for someone else's loss. State minimum auto limits are usually far too low for a serious accident. If you cause $40,000 in injuries and $20,000 in vehicle damage, $100,000 BI and $50,000 PD limits cover both. See the full definition with examples on our Insurance Terms page at /insurance-terms.

Have a question we did not answer?

We respond within 1 business day. No obligation.

Free Coverage Review