Vehicle liability

Vehicle liability, a core segment of auto insurance, covers financial responsibility for injuries or property damage you cause with your vehicle. Liability coverage splits into bodily injury and property damage categories–covering specific medical expenses and repair costs, respectively.

Most US states, including California and Texas, mandate minimum vehicle liability limits–for example, California requires $15,000 per person/$30,000 per accident for injuries and $5,000 for property damage (as of 2024). Insurers determine premium rates using factors like driving history, age, and state-minimum requirements.

Vehicle liability only pays for damages you cause to other parties; it does not cover your own vehicle repairs or injuries. If multiple people are injured in a single accident, insurers pay up to the policy’s total per-accident limit–such as $30,000 for all persons combined in California’s minimum plan, according to a report from YourInsurance.info.

Exceeding your liability limits means you are personally responsible for additional costs not covered by the policy. Commercial vehicles must carry higher liability limits than personal vehicles; federal law requires interstate trucking companies to have at least $750,000 in liability coverage.

Liability claims often result from common incidents such as rear-end collisions or running red lights, as reported by the Insurance Institute for Highway Safety (IIHS). Excluded situations typically include intentional acts or criminal activity–such as road rage or using a vehicle to commit a crime.

Proof of active vehicle liability insurance is required during traffic stops or after accidents; penalties for noncompliance can include fines up to $500 and license suspension in states like Florida.