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Video

What is car liability insurance?

If you are in a car accident that is your fault, liability insurance is designed to cover the losses of the other driver, up to a limit. Learn how to help reduce the financial risk a car accident could cause.
December 12, 2025
49 sec watch
A father hands his daughter car keys after ensuring she has liability insurance.
00:02:01 - 00:04:05
What is car liability insurance?

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Liability insurance helps provide you protection from claims against you

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when your vehicle causes injury to someone else or damages someone's property.

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Here's how it works: Say you're in a car accident

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that is your fault. Your liability insurance could help cover

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the cost of repair of the other driver's vehicle. Most states even require

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some liability car insurance. Look, car accidents happen.

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And they can be expensive. That's why you should understand

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the need for liability insurance, to help reduce

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the financial risk a car accident could cause. So be prepared for the unexpected

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with liability insurance.

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