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What Does Liability Car Insurance Cover?
Liability car insurance provides coverage for medical care and vehicle repairs for others involved in an accident that you caused or that was caused by another driver you allowed to use your car. The purpose of liability insurance is to protect you and your family from unexpected costs arising from claims against you. While it’s important not to overpay for insurance, it’s equally important to ensure you have enough coverage to protect you from losses.
What Liability Insurance Does and Doesn’t Cover
Covered
- Damage to other drivers’ vehicles
- Bodily injury to other drivers
- Damage to other people’s property
- Legal fees if you’re sued after an accident
- Lost wages of other drivers
- Funeral expenses of victims killed in an accident
Not Covered
- Damage to your vehicle
- Bodily injury to the policyholder
- Bodily injury to your passengers
- Expenses exceeding your coverage limits
- Your lost wages
Average Cost of a Car Accident
In 2022, the average auto liability claim for property damage was $5,313, while the average auto liability claim for bodily injury was $24,211, according to the Insurance Information Institute. The cost for injuries resulting from an accident varies based on the severity of the accident. Here’s a breakdown of average car accident costs by severity:
| Severity of Accident | Average Cost |
|---|---|
| Death | $1,869,000 |
| Disabling | $162,000 |
| Evident | $42,000 |
| Possible | $26,000 |
| No injury observed | $7,100 |
| Property damage only (cost per vehicle) | $6,100 |
How Much Is Liability Car Insurance?
The average cost of a liability-only car insurance policy is about $80 to $150 per month, according to Progressive. Your actual costs may vary by state, ZIP code, history of accidents and traffic violations, and even your credit scores. Your car insurance policy may be higher if you buy coverage in addition to the minimum legal liability requirement.
Do I Need Liability Car Insurance?
As of July 2024, every state but New Hampshire requires all car owners to carry liability coverage. New Hampshire requires individuals who waive coverage to have sufficient financial means to cover accident-related costs. Licensed drivers who don’t own cars but regularly drive borrowed, rental, or rideshare vehicles may also require a type of liability coverage known as non-owner car insurance.
How to Get Liability Car Insurance
Obtaining car insurance is a straightforward process for most car owners. Here are some basic steps to follow when seeking out the best deal on an auto liability policy:
- Gather Required Information: You’ll need your driver’s license number, the vehicle identification number (VIN) of any car you wish to insure, and your name and address.
- Choose Your Deductible and Coverage Limit: Decide on your deductible and coverage limits. Most states have minimum coverage requirements, but you can get more coverage and choose the deductible you want.
- Get Quotes From Insurers: You can find auto insurance quotes from many insurers online. Consider using an online rate comparison tool or an independent insurance agent to gather quotes from multiple providers.
- Select a Provider: Choose the policy that offers the best rates, submit your payment, and obtain insurance cards to keep in your vehicle as proof of insurance.
How to Save Money on Liability Car Insurance
The most effective way to save money on liability car insurance is to shop around among multiple insurers. These tactics may yield additional savings:
- Bundle policies: Many insurers offer discounts to customers who purchase multiple policies.
- Seek membership discounts: Civic clubs, veterans groups, trade unions, and organizations such as AAA and AARP may have affiliations with auto insurers that can lead to lower rates.
- Consider a defensive driving course: Many insurance companies discount their rates for customers who attend qualified classes on defensive driving.
- Work to improve your credit scores: Auto insurers in many states use credit-based insurance scores to help set their premiums.
The Bottom Line
Liability car insurance is a legal requirement for most car owners and drivers, and good liability coverage can pay for itself many times over if you or another driver of your car is at fault in an accident. If you are seeking auto liability coverage, O1ne Mortgage can help you find the best rates. Call us at 213-732-3074 for any mortgage service needs.
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