Question 1

What is auto liability insurance?

Accepted Answer

Auto liability insurance pays for injuries and property damage you cause to others when you are at fault in an accident. It covers the other party — not your own vehicle or injuries. Most states require a minimum amount of liability coverage to legally drive.

Question 2

What is the difference between bodily injury and property damage liability?

Accepted Answer

Bodily injury liability (BI) pays for the other person's medical expenses, lost wages, and legal fees. Property damage liability (PD) covers damage to their vehicle or property. Both are included in most liability policies with separate limits.

Question 3

How much liability insurance should I carry?

Accepted Answer

A common recommendation is to carry at least 100/300/100 — $100K per person, $300K per accident, $100K property damage. State minimums are a legal floor but frequently fall short of real-world accident costs. Consider umbrella coverage if you have significant assets.

Question 4

What are split limits vs. combined single limit?

Accepted Answer

Split limits set separate caps for per-person bodily injury, total accident bodily injury, and property damage. Combined single limit (CSL) uses one total dollar amount that covers all liability in a single accident, offering more flexibility in how coverage is allocated.

Question 5

Does liability insurance cover my own injuries?

Accepted Answer

No. Liability covers the other party when you are at fault. Your own medical bills are covered by medical payments (MedPay), personal injury protection (PIP), or your health insurance.

Question 6

What happens if I exceed my liability limits?

Accepted Answer

If liability claims exceed your policy limits, you are personally responsible for the difference. An umbrella policy can provide an additional $1M or more of coverage on top of your auto liability limits for relatively low annual cost.

Question 7

Is liability insurance required in all states?

Accepted Answer

Almost all states require minimum auto liability insurance to register and drive a vehicle. New Hampshire and Virginia are partial exceptions but still require financial responsibility. VKOVR provides state-specific minimum requirements wherever you live.

Liability Insurance Insurance FAQ

Liability Insurance Insurance FAQ

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