Liability car insurance covers damages to another person resulting from an accident you cause. One of the most basic types of auto insurance coverage, liability is also one of the few coverage options that's required in every state—though minimum limits of coverage vary, depending on where you live.

What are the two types of liability coverage?

If you're found to be at fault in an accident, liability coverage will help you pay for damage to another person's property (this is called property damage liability) or for costs associated with their injuries (this is called bodily injury liability) that you are responsible for.

Do pay-per-mile insurance policies offer liability coverage?

For the many low-mileage drivers who drive less than 10,000 miles per year, you still have the option to get liability coverage with your pay-per-mile insurance policy. If you have never heard of this revolutionary new insurance coverage, you can You could save $500 with pay-per-mile insurance while still getting the exact coverage you need for your urban lifestyle.

What isn't covered by liability insurance?

Whether you decide to get traditional insurance coverage or a pay-per-mile insurance policy, liability coverage typically doesn't pay for damage to your own car or costs associated with your own injuries from an accident you cause. If you want this type of coverage, you may want to consider medical payments coverage or personal injury protection.

How much liability coverage should you purchase?

When you purchase an auto insurance policy with liability coverage, you should pay attention to the limits. You need to meet the state's minimum required limits, of course, but you may want to purchase a policy with higher limits to make sure you're better protected. The reason is that, if the damage you accidentally cause exceeds the limits of your coverage, you may be held financially responsible for the difference.

Don't drive much? Why pay much for car insurance?

If you are a low-mileage driver, you may not be aware of the revolutionary new auto insurance option called Pay-Per-Mile Coverage. This coverage is perfect for drivers who travel less than 10,000 miles per year, and could save you up to $500 a year while providing you the same great coverage as the higher-cost traditional insurance policies.

Traditional car insurance just isn't fair