What Is Liability Coverage in Auto Insurance?
Understanding the Backbone of Your Car Insurance Policy
When it comes to car insurance, liability coverage isn’t just a good idea it’s the law in most states. If you're ever in an accident and found to be at fault, liability is the coverage that pays for the other person’s injuries and property damage so you’re not stuck footing the bill.
At OnePoint Insurance Agency, we believe insurance should be easy to understand and easy to use. So let’s break it all down in plain English no jargon, no fluff.
What Liability Auto Insurance Covers
Liability insurance comes in two essential parts:
1. Bodily Injury Liability (BIL)
Covers the other person’s:
Medical expenses
Lost income
Pain and suffering
Legal costs if they sue you
2. Property Damage Liability (PDL)
Covers damage you cause to:
Another person’s car
Mailboxes, fences, buildings, or any other property
Example: You rear-end someone at a stoplight. Your liability coverage helps pay for their hospital bills and car repairs not yours.
Benefits of Liability Coverage:
Protects you from paying thousands out-of-pocket
Covers legal defense if you’re sued
Required to drive legally in most U.S. states
What Liability Insurance Doesn’t Cover
While liability is essential, it’s not all-encompassing. Here’s what it won’t cover:
Your own car repairs (That’s what collision coverage is for)
Your medical bills (You'll need personal injury protection or MedPay)
Damages above your policy limit (Yup you’re on the hook for the rest)
Intentional damage or illegal activity
Heads up: Going with minimum coverage might save you a few bucks monthly, but one serious accident could put your savings, paycheck, and even house on the line.
Need extra peace of mind? Ask us about umbrella policies and higher liability limits for more protection.
Who Needs Auto Liability Insurance?
Spoiler alert: Pretty much everyone behind the wheel.
Let’s break it down:
Everyday Drivers: Your daily commute, errands, and carpool lane adventures all come with risk.
Rideshare Drivers: Uber and Lyft offer some coverage—but it might not be enough.
Teen Drivers & Families: Young drivers = higher risk. Protect your assets from costly lawsuits.
Small Business Owners: Using your car for work? You may need commercial auto liability coverage.
Frequently Asked Questions
What’s the minimum liability coverage required by law?
That depends on your state. For example, in Georgia, the minimums are:
$25,000 for bodily injury per person
$50,000 per accident
$25,000 for property damage
(Source: Georgia Office of Insurance and Safety Fire Commissioner)
OnePoint Tip: Minimums rarely match real-world accident costs. We recommend going above and beyond to truly stay protected.
Does liability cover my own car if I cause an accident?
Nope. It only pays for damage and injuries you cause to others.
To fix your own ride, you’ll need collision or comprehensive coverage.
What happens if damages exceed my liability limits?
That’s on you.
You could face:
Garnished wages
Seized assets
Legal judgments
That’s why higher limits or umbrella insurance can save your bacon.
Is liability coverage the same as full coverage?
Not even close.
“Full coverage” usually means:
Liability
Collision
Comprehensive
Liability is just one piece of the puzzle.
How OnePoint Insurance Agency Can Help
We’re an independent agency, which means we shop top-rated carriers for you not the other way around.
Whether you need state-minimum coverage or want to max out your protection, we’ve got your back. Our agents speak real language, not insurance-ese. Plus, we serve Georgia, Florida, Texas, Illinois, and beyond.
Let’s find you the right policy without the pressure.
