Civil liability insurance

Civil liability insurance

Auto liability insurance is a type car insurance coverage that’s required by law in most states. If you cause accident, liability coverage helps pay for other person’s expenses. There are two types of auto liability coverage that drivers in each state must have: bodily injury liability coverage and property damage liability coverage.



Coverage Type What It May Cover What’s Typically Not Covered
Personal Property The cost repair or replace your belongings, such clothing, furniture and electronics, up to the limits in your policy Personal property loss over your coverage limit
Liability Repairs if you accidentally damage someone else’s property or a guest’s medical bills if you’re found responsible for their injuries Liability protection over your coverage limit
Additional Living Expenses Additional costs you incur, like hotel bills, the home you rent is damaged and left uninhabitable Damage the structure of the building you’re renting


Think of everything you own. The value of your belongings can quickly add up. Personal property coverage, a typical component of renters insurance, may help cover the cost of replacing your stuff if it’s unexpectedly damaged ruined. That protection generally applies certain risks (also referred to as “perils”), such fire and theft, the Insurance Information Institute (III) explains. So, if your computer and television are stolen, or your furniture and clothing are destroyed by a fire, this coverage may help you pay for the cost of replacing them. It’s important to know that coverage limits — the maximum amount your policy will pay for personal property losses — will apply. Read your policy carefully contact your agent for information on what may or may not be covered.

When purchasing a renters insurance policy, you may face a few different choices. For instance:


Auto liability insurance helps cover:

  • Bodily injury.
    If you’re at fault for an accident that injures another person, bodily injury liability coverage helps pay for their medical expenses.
  • Property damage.
    If you cause an accident that damages someone else’s property (their car, for example), property damage liability coverage helps pay for repairs.


The amount your insurer will pay for covered liability insurance claim subject to the coverage limits you choose. Each state sets minimum coverage limits for bodily injury liability and property damage liability that drivers must purchase, but you may decide buy additional coverage. You may see three liability coverage limits on your car insurance policy:

  • Property damage liability limit.
    This the maximum amount your insurer would pay to repair damage you cause another party’s property. The maximum payout would not exceed the limit you’ve set.
  • Bodily injury liability limit per person.
    This establishes maximum payout for each individual who is injured an accident that you cause.
  • Bodily injury liability limit per accident.
    This sets a cap the total amount that your insurance provider will pay out for all medical expenses other people incur from a single accident you cause. It’s important to set this limit at an amount that makes you comfortable, as it may be needed help pay for the medical expenses incurred by multiple people.

Consider the following: You are at fault for a crash that injured three people in another car. Your bodily injury liability limit per person is $45,000 and your bodily injury limit per accident is $100,000. If Person 1’s medical bills total $45,000, Person 2’s cost $25,000 and Person 3’s cost $20,000, you’re likely covered, as each person’s bills were under $45,000 (your bodily injury limit per person), and the total cost of injuries is $90,000, which is lower than your $95,000 bodily injury limit for a single accident.

Any costs that exceed your liability coverage limits are your responsibility in other words, you’d have pay them out of your own pocket. That’s why it may be a good idea to increase your auto liability limits above the state’s minimum requirements by purchasing more coverage.


Liability coverage typically doesn’t pay for damage your own car after an accident — collision coverage helps with that.

Liability coverage also does not extend costs associated with your own injuries after an accident you cause. If you want this type of coverage, you may want to consider medical payments coverage.