(800) 956-3728 
Tell us about your residence
Welcome back!
You can pick up from where you left by retrieving your quote below.
Search by Quote ID → Search by Date of BirthLiability Coverage Car Insurance
Liability car insurance is the foundation of most auto insurance policies. It helps cover the cost of injuries and property damage if you’re found legally responsible for an accident. Most states require drivers to carry a minimum amount of liability coverage, but many drivers opt for more robust protection to avoid out-of-pocket costs after a serious accident.
This type of coverage includes two key parts: bodily injury liability (BIL) and property damage liability (PDL). Together, these help protect your financial future and give you peace of mind while on the road.
Who Does a Liability Insurance Policy Cover?
A liability insurance policy typically covers you, the policyholder, and any listed drivers on your auto insurance policy. It protects against claims from other people (not you or your passengers) if you're found at fault in an accident.
Here’s how the two key parts of liability coverage work:
|
Type of liability coverage |
What it covers |
Who it protects |
|
Bodily injury liability (BIL) |
Medical expenses, lost wages, legal fees, and pain and suffering for other people injured in an accident you caused. |
Other drivers, passengers, and pedestrians injured by your vehicle. |
|
Property damage liability (PDL) |
Repairs or replacement for another person’s car or property you damage in an accident. |
Other vehicle owners or property owners affected by the accident. |
Liability insurance does not cover your own injuries or damage to your vehicle. For that, you’ll need additional coverage like collision protection or medical payments.
What are auto insurance liability coverage limits?
When you buy liability car insurance, you’ll choose coverage limits. These are the maximum amounts your insurance company will pay if you’re at fault in an accident. They’re usually shown as three numbers, like $25,000/$50,000/$15,000.
Here’s what each number means:
- $25,000: The most your policy will pay for one person’s injuries in an accident.
- $50,000: The most your policy will pay for all injuries in one accident.
- $15,000: The most your policy will pay for property damage in one accident.
These are called split limits, and every state sets a minimum requirement you need to meet to drive legally. But those minimums aren’t always enough, especially if there’s a serious accident.
The Insurance Information Institute recommends that you carry at least $100,000/$300,000/$50,000 in liability coverage. Many experts also suggest buying a minimum of $50,000 in property damage liability alone. If your net worth is higher than your coverage limits, you could be held personally responsible for any costs that go beyond what your policy pays.
Damages from even a low-impact collision can easily exceed mandatory liability auto insurance limits, so be sure to discuss what limits make sense for you with your Mercury agent.
Frequently Asked Questions
Do I need liability insurance?
Yes, liability insurance is legally required in almost every state. Each state sets its own minimum coverage limits, which are the lowest amounts you’re allowed to carry to drive legally. These minimums are a starting point, but they may not fully protect you if you’re involved in a serious accident.
How much liability coverage do I need?
The right amount depends on your state’s minimum requirements, your financial situation, and your risk tolerance. Many drivers choose higher limits than required to avoid paying out of pocket. Visit our Local Insurance page to see what your state requires.
Is liability insurance full coverage?
No. Liability insurance only covers damage or injuries you cause to others. It doesn’t pay for your own car repairs or medical bills. For full coverage, you’d need additional protection like collision or comprehensive coverage.
What is liability coverage auto insurance?
Liability coverage is the part of your auto insurance policy that pays for injuries or damage you cause to other people and their property in an accident. It also helps cover legal defense costs if someone sues you.
How do I get liability insurance?
Getting liability insurance is easy. You can start a quote online in minutes or connect with a Mercury agent who can help you customize a policy that fits your needs and budget.
What does “liability-only coverage” mean?
Liability-only coverage means your policy includes just the legally required minimum coverage—no extras like collision or comprehensive. It’s usually the cheapest option, but it won’t help pay for damage to your own car.
How much does liability car insurance cost?
Liability insurance rates vary based on your state, driving record, age, and the coverage limits you choose. For more info, check out our blog post about liability insurance rates and prices.