Liability-Only Car Insurance, Explained

What liability pays for

Bodily injury liability pays for other people's injuries from a crash you are legally responsible for, such as medical bills and lost wages, and for your legal defense if you are sued. Property damage liability pays for damage to someone else's car, fence, building or other property. Both apply up to the limits on your policy.

What it does not pay for

• Repairs to your own car after a crash
• Theft of your car
• Weather flood fire or animal damage to your car
• Towing and rental cars unless you add those options
• Your own injuries in states without required personal injury protection

Who chooses liability-only

Drivers of older cars they own outright often choose liability-only because the cost of collision and comprehensive coverage can approach what the car is worth. Others choose it to meet a legal requirement at the lowest cost. If the car is financed or leased, the lender almost always requires physical damage coverage too.

State requirements

Nearly every state requires drivers to carry liability insurance or prove financial responsibility in another way. States set their own minimum limits and may require additional protection, such as personal injury protection or uninsured motorist. Your state insurance department or motor vehicle agency publishes the current minimums.

Driving without coverage

Driving without required insurance can lead to fines, license or registration suspension and, after a crash, personal responsibility for every cost. A lapse can also make future insurance more expensive.

Liability topics

Frequently asked questions