What Is Covered Under Liability Auto Insurance?

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Liability coverage in auto insurance helps protect drivers from the financial burden of damage that they may cause to other drivers. If you were the cause of $50,000 in damage to another person's vehicle but you didn't have liability coverage, the other party could attempt to sue you to cover the damages. It can be beneficial to carry more than the minimum required amount liability coverage, since damages caused can easily exceed required minimums. For instance, the minimum property liability coverage in California is $5,000, but if you run into an expensive vehicle, your liability is likely to be tens of thousands of dollars.

Auto liability coverage is usually split into three different types: liability coverage for bodily harm to a single person, bodily harm to multiple people, and property damage. Auto insurance companies often quote these numbers in a format that looks like this: 15/30/30, where the first number equals the amount of bodily harm coverage for one person in thousands of dollars, the second number indicates the amount of coverage for multiple persons and the third number is the amount of property liability coverage.

The fact that a minimum level of liability insurance is required by law in most states means that if you get in an auto accident that is not your fault the other driver's insurance will typically pay for some or all of the damage done to you and your vehicle. Some drivers, however, may choose not to carry insurance at all. Another type of insurance, called uninsured and underinsured motorist coverage, is offered to protect against damage caused to you by drivers not carrying liability coverage or who have inadequate liability coverage.

The cost of liability coverage and other types of auto insurance coverage have the potential to change due to a variety of factors. Your personal driving record is a key factor; if you get into an accident that is your fault and must make a liability insurance claim, the cost of your insurance premiums will likely go up. The make, model and purpose of your vehicle can also impact insurance rates. If you are insuring a vehicle you rarely drive, your premiums may be low, while if you are insuring a car you use to commute to work, premiums may be higher.

Liability auto insurance coverage does not insure damage caused to you or your vehicle. Collision insurance covers damage caused to your car while driving, while comprehensive insurance covers damage caused to your car by events such as fires, theft and fallen trees.