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Liability Insurance: What It Covers & What It Costs

Liability insurance pays for injuries and property damage you cause to others in an at-fault accident.

What Is Liability Insurance Insurance?

Liability insurance has two components: bodily injury liability covers medical expenses, lost wages, pain and suffering, and legal costs when you injure someone in an at-fault accident. Property damage liability pays to repair or replace the other driver's vehicle, damaged fences, buildings, or other property you hit. Your insurer pays claims up to these limits, and you're personally responsible for any amount above them.

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Who Needs Liability Insurance Insurance?

Every driver needs liability insurance—it's legally required in 48 states and provides your only protection against personal financial liability if you cause an accident. For drivers completing SR-22 requirements, this is the moment to reassess your limits: if you've been carrying state minimums to keep costs down during your filing period, now is the time to upgrade to 100/300/100 or higher as you shop standard carriers who offer better rates for comprehensive protection.

Calculate your total net worth including home equity, savings, and retirement accounts—your liability limits should meet or exceed this amount to protect your assets. For post-SR22 drivers, request quotes at both your current minimum and at 100/300/100 or 250/500/100 from standard carriers competing for your business—the cost difference is often smaller than expected, and the added protection is substantial given your history of elevated risk.

Related Coverage Types

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Uninsured Motorist Coverage→

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Comprehensive Coverage→

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SR-22 Insurance→

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Full Coverage→

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Your SR-22 Is Over. Your Rate Should Drop Too

Find Affordable Coverage After SR-22