What Is Liability Insurance?
Liability insurance pays for injuries and property damage you cause to others in an at-fault accident.
Find Coverage with Points on Your LicenseWhat Is Liability Insurance Insurance?
Liability insurance has two components: bodily injury liability (BI) and property damage liability (PD). Bodily injury covers medical bills, lost wages, pain and suffering, and legal fees when you injure someone else in an accident you caused. Property damage covers repair or replacement costs for other people's vehicles, buildings, fences, and other property you damage. Your liability coverage pays up to your policy limits, but it never pays for your own injuries or vehicle damage.
Who Needs Liability Insurance Insurance?
Nearly everyone needs liability insurance — it's legally required in 48 states, and driving without it can lead to license suspension, fines, and SR-22 filing requirements. If you have points on your license from a recent ticket or accident, liability is even more critical because you're statistically more likely to be involved in another incident, and you can't afford the out-of-pocket exposure. Even if you drive an older car with no loan and skip collision coverage, liability is non-negotiable.
The real question isn't whether you need liability — you do. The question is how much. If you have assets to protect (a home, savings, retirement accounts), carry limits well above your state minimum — ideally 100/300/100 or higher. If you're living paycheck to paycheck and already paying elevated rates due to points, meet your state minimum to stay legal, then focus on shopping carriers aggressively every six months to recover your rate as points age off your record.
How Much Does Liability Insurance Insurance Cost?
- Age and gender: Young male drivers under 25 with points pay significantly more — often double the rate of drivers over 30 with clean records.
