Purpose

• If you are involved in an auto accident and are at-fault, liability insurance pays for damages to the other party's vehicle. Medical bills and other property damage are also covered by liability insurance, up to the policy limits. Coverage is divided into three parts: bodily injury coverage for a single person, bodily injury liability for all injured individuals and property damage liability per accident.
  
  

State Law

• Forty-eight states in the U.S. have laws that require motorists to carry liability insurance, and each state has its own minimum liability limits. New Hampshire and Wisconsin do not require liability insurance by law.
  
  

Additional Coverage

• Liability insurance does not pay to have your vehicle repaired or for your medical expenses. Instead, comprehensive or collision insurance pays for those expenses. If you loan or lease your vehicle, you are required to have liability, collision and comprehensive coverage.