Liability auto insurance covers the costs of the other drivers property and bodily injuries if you are found at fault in an accident. Liability coverage is required by law in almost every state, and it is broken down into two parts: property damage and bodily injury.

• Property damage liability coverage pays for the costs associated with repairing or replacing another persons property, such as their car, mailbox, or fence.

• Bodily injury liability coverage pays for the medical expenses and out-of-pocket expenses of the other party if you are responsible for an accident and someone else gets hurt. This coverage may also cover associated legal defense costs.

Liability coverage has limits, and any costs that exceed your liability coverage limits would have to be paid out of your own pocket. Liability coverage does not cover damages to your own car or your injuries. For that, you will need comprehensive and/or collision coverage.

It is important to note that liability coverage does not cover all types of damages, such as damages caused by natural disasters or theft[[1]](https://www.allstate.com/resources/car-insura...