Guide to Bodily Injury & Property Damage Liability Coverage

Read our guide to bodily injury and property damage liability coverage as these are the two types of insurance policies that are likely to be required by your state insurance laws. Bodily injury liability coverage pays for injuries you cause to other drivers in an accident, and property damage liability coverage pays for damage you cause to another’s property or another driver’s car in an accident. Scroll down to learn more.

Free Insurance Comparison

 Secured with SHA-256 Encryption

Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around insurance guides and informational articles. She truly enjoys helping others learn more about everyday, practical matters through her work.

Full Bio →

Written by

Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

Full Bio →

Reviewed by Laura Walker
Former Licensed Agent

UPDATED: Nov 10, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.

Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.

Liability insurance, which is required in the majority of states, consists of Bodily Injury and Property Damage insurance options which are combined. Liability means that you bear the blame for a particular damage that occurs to another person. Some examples of this would be if you were to cause an accident or collision.

What is Bodily Injury Liability Coverage?

If you were to strike a pedestrian or injure a person in another car that is struck by your vehicle, Bodily Injury Insurance would be the coverage type involved. It is wise to go above minimum requirements. The cost associated with paying medical bills has risen much quicker than the price of car insurance, thus having minimum coverage could leave you personally responsible for paying large sums of money from your own personal funds.

What is Property Damage Liability Coverage?

Property Damage Insurance is very similar to Bodily Injury Insurance. Property Damage Insurance repairs or replaces the other person’s property that you have damaged in the course of an accident. As surprising as this may sound, the minimum Property Damage Liability coverage required by the majority of states is not enough to pay for the replacement of a new automobile, if you are unfortunate enough to be responsible for totaling a someone’s new car. A good rule to remember is to be sure that your Property Liability coverage is, at minimum equal to the average price of a new vehicle.

Do I Still Need Personal Injury Protection?

Personal Injury Protection, also known as PIP insurance, provides coverage for your injuries in an accident for which you are at fault. This is not a standard portion of regular liability insurance. In most cases it must be purchased as a rider or add-on to your automobile insurance policy. If you do not have PIP insurance coverage, you may end up injured, out of work and facing mounting medical bills. It really pays off to have PIP coverage, as it may prevent a relatively minor accident from causing complete financial ruin for your family.

What About Uninsured Motorist Coverage?

If a person who does not have sufficient, or any, Liability coverage, then Uninsured/Under-insured Motorist coverage would pay for injuries or damages suffered by you or your passengers and any damage to your property. This coverage is not a standard part of the average liability policy, but some laws require it. Even if your state does not require this type of insurance it is a good idea for anyone that drives an automobile to have it.

Free Insurance Comparison

Compare quotes from the top insurance companies and save!

 Secured with SHA-256 Encryption