(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.