{"id":60548,"date":"2025-06-10T12:18:34","date_gmt":"2025-06-10T19:18:34","guid":{"rendered":"https:\/\/jerry.ai\/?post_type=car-insurance&p=60548"},"modified":"2025-12-04T08:14:20","modified_gmt":"2025-12-04T16:14:20","slug":"what-is-liability-car-insurance-and-what-does-it-cover","status":"publish","type":"car-insurance","link":"https:\/\/jerry.ai\/car-insurance\/what-is-liability-car-insurance-and-what-does-it-cover\/","title":{"rendered":"Liability Car Insurance: What It Is and What It Covers"},"content":{"rendered":"\n

Liability car insurance pays for injuries and damage you cause to others and their property<\/strong> if you’re at fault for a car accident. It covers other people’s medical bills, lost wages and property damage, up to your policy limits<\/strong>. All states except New Hampshire require drivers to have liability insurance.<\/p>\n\n\n\n

\n \nJerry has helped 126,307<\/span> drivers<\/strong> get the right amount of liability car insurance in the past year, so that they\u2019re financially protected while on the road. Here\u2019s how it works, how much it costs and where to buy it.\n<\/p>\n\n\n

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Jerry pulls up to 20 quotes from top rated carriers.<\/strong><\/p>\n\n\n\n

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Compare quotes<\/a><\/div>\n<\/div>\n<\/div><\/div>\n<\/div>\n<\/div>\n\n\n\n

What does liability insurance cover?<\/h2>\n\n\n\n

Liability insurance only pays for other people\u2019s injuries and property, <\/strong>not yours or your cars.<\/p>\n\n\n\n

Will cover<\/th>Won’t cover<\/th><\/tr><\/thead>
Other people’s medical bills.<\/td>Your medical bills.<\/td><\/tr>
Other people’s lost wages.<\/td>Your lost wages.<\/td><\/tr>
Other people’s car repairs.<\/td>Your car’s damage.<\/td><\/tr>
Property damage you cause.<\/td>Your passengers’ injuries.<\/td><\/tr>
Legal defense if you’re sued.<\/td>Personal belongings in your car.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n
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Key takeaway:<\/strong> Liability insurance has no deductible<\/strong>. You don’t pay anything out of pocket to activate coverage, but you’re responsible for costs that exceed your limits.<\/p>\n<\/div><\/div>\n<\/div>\n<\/div>\n\n\n\n

How liability insurance works<\/h2>\n\n\n\n

Liability insurance consists of <\/strong>bodily injury liability<\/strong><\/a> (BI) and <\/strong>property damage liability<\/strong><\/a> (PD)<\/strong>. BI pays for others\u2019 injuries while PD pays for damage you cause to other people\u2019s property.<\/p>\n\n\n\n

Most states require a minimum amount of both, typically listed as three numbers, like 25\/50\/25. This represents:<\/p>\n\n\n\n