# Liability insurance

> Liability insurance defined: the part of a car insurance policy that pays for injuries and damage you cause to other people, and what it leaves out.

Canonical page: https://statecover-guide.com/glossary/liability-insurance/  
Last reviewed: October 28, 2026 by the StateCover Guide editorial team  
General information, not legal or insurance advice.

## Quick answer

Liability insurance is the coverage that pays other people when you are legally responsible for a crash: their medical bills and the repair or replacement of their car or other property. It does not pay for your own injuries or your own car.

## How it works

Car liability coverage has two parts:

- **Bodily injury liability** pays for other people's injuries, such as the other driver's and passengers' medical bills.
- **Property damage liability** pays to repair or replace the other driver's car or other property you damage.

Liability coverage pays only up to the limits you choose. The Texas Department of Insurance warns that minimum limits can be too low after a multi-car crash or when the other car is totaled, and that you may have to pay the rest yourself or be sued for it.

Liability is the coverage states make drivers carry. It is legally required in 49 states and the District of Columbia, which is why it is the base of almost every auto policy. Coverage for your own car comes from collision and comprehensive, which are optional unless a lender or leasing company requires them.

## Related terms

- [Bodily injury liability](https://statecover-guide.com/glossary/bodily-injury-liability/)
- [Property damage liability](https://statecover-guide.com/glossary/property-damage-liability/)
- [Liability limits](https://statecover-guide.com/glossary/liability-limits/)
- [Financial responsibility law](https://statecover-guide.com/glossary/financial-responsibility-law/)
- Guide: [Liability car insurance explained](https://statecover-guide.com/coverage/liability/)

## FAQ

### Does liability insurance cover my own car?

No. Repairs to your car come from collision coverage for crashes, or comprehensive coverage for theft, weather and similar damage.

## Sources

- [California Department of Insurance, Automobile Insurance Terms](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/01-auto/autoterms.cfm) — definition of liability insurance
- [Texas Department of Insurance, Auto insurance guide](https://www.tdi.texas.gov/pubs/consumer/cb020.html) — what liability pays, risks of low limits, lender requirements
- [Insurance Research Council, Uninsured and Underinsured Motorists: 2017–2023 (press release)](https://www.businesswire.com/news/home/20250220231032/en), as of February 20, 2025