What Is Liability Insurance and What Does It Cover?

Liability insurance protects you if you injure someone else or damage their property with your car.

Insurance Crossword
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Auto liability insurance helps financially protect you if you or your car is found at fault in an auto accident. This type of coverage is about safeguarding you from third-party claims; it will not cover any damage to your car or your injuries. 

Liability pays out when you hit someone or something with your vehicle. It can help cover an injured person's medical bills, repairs to someone's vehicle or fix damage to property. Drivers in most states are legally required to carry some form of liability insurance.

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Donna LeValley
Personal Finance Writer

Donna joined Kiplinger as a personal finance writer in 2023. She spent more than a decade as the contributing editor of J.K.Lasser's Your Income Tax Guide and edited state specific legal treatises at ALM Media. She has shared her expertise as a guest on Bloomberg, CNN, Fox, NPR, CNBC and many other media outlets around the nation.