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 (the coverage known as bodily injury liability) that you are responsible for.

What is pay-per-mile bodily injury insurance, and why should you consider it?

Pay-per-mile insurance is a revolutionary new insurance coverage that is perfect for low-mileage drivers. These drivers, typically ones who use mass transit, carpool, telecommute, or live an urban lifestyle, shouldn't have to pay for the expensive traditional insurance coverage that higher-mileage drivers do. Traditional car insurance just isn't fair. 

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

For the many low-mileage drivers who drive less than 10,000 miles per year, you still have the option to get bodily-injury liability coverage with your pay-per-mile insurance policy. Mileage-based insurance is an exceptional choice for low-mileage drivers seeking bodily-injury insurance.

What isn't covered by bodily-injury liability insurance?

Whether you decide to get traditional insurance coverage or a pay-per-mile insurance policy, liability coverage typically doesn't pay for costs associated with your own injuries from an accident you cause. If you want this type of coverage, you should consider also purchasing 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 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 insurance. 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.