Car insurance glossary
What is liability coverage?
Liability coverage pays covered costs when you are legally responsible for injuring someone or damaging their property with a vehicle.
Also called: liability insurance
Glossary date: January 12, 2026
How it works
Auto liability usually has separate bodily injury and property damage limits. It does not pay to repair your own car or cover your own injuries.
Example
You cause a crash that damages another car. Property damage liability may pay the covered repair bill up to your policy limit.
Why it matters
State minimum limits may be lower than the cost of a serious crash. You can be responsible for amounts above your limit.
What to check on your policy
Read all liability limits on the declarations page and compare them with your assets and driving risks.
Related car insurance terms
Put the terms into context
Read the full guide, find a nearby GoAuto office, or start a quote with the coverage details you want to discuss.