Auto insurance
Liability coverage
Liability coverages are among the most important in relation to your financial security. With ever-increasing medical costs, the possibility of a multi-car accident, or damage to expensive property, the minimum coverage limits required by law may not be enough. Depending on the situation, choosing low liability limits may lead to more out-of-pocket costs.
What is liability coverage?
There are 2 types of liability coverage: property damage and bodily injury. These coverages help protect you from being found legally liable if you're in an accident with another party, injuring them or damaging their vehicle. Your liability coverage will only cover third-party injuries or damage, not your own. Auto liability insurance coverage will help cover the costs of bodily injury of vehicle damage to another driver under the circumstance that you are at fault.
Being at fault in an accident is easier to achieve than one might think as it can happen through no fault of your own but be considered your fault due to the law (except in a no-fault state). For example, you could crash into a car that goes ahead of its turn at a four-way stop and be found at fault for the accident, even if it was your turn to go.
- To learn about coverages available to protect your vehicle, read about collision coverage and comprehensive coverage.
- For more information on medical coverage for you and your passengers, look into medical payments coverage.
Minimum liability requirements
Financial responsibility laws define minimum liability coverage limits; these requirements vary by state. California limits are $15,000 per person, $30,000 per accident for bodily injury, and $5,000 for property damage.
AAA auto insurance liability coverage
Examples of liability insurance
Let's assume you have a liability policy of $15,000 per person and $30,000 per accident. If you were in an accident involving multiple people and found at fault, your liability insurance would pay the damages up to your policy limits.
Scenario 1
- Person A has medical expenses and pain and suffering totaling $15,000.
- Person B has medical expenses and pain and suffering totaling $10,000.
In this example, your liability insurance covers those expenses since both individuals have claims that are less than your policy's individual $15,000 limit and the combined claim is less than the policy's $30,000 per-accident limit.
Scenario 2
- Person A has medical expenses and pain and suffering totaling $15,000.
- Person B has medical expenses and pain and suffering totaling $10,000.
- Person C has medical expenses and pain and suffering totaling $10,000.
In this example, the total damages amount to $35,000. Your insurance pays $30,000, and you're responsible for the additional $5,000 as the at-fault party.
Additional liability coverage options
AAA also offers coverage limits above the financial responsibility law to provide additional protection. If you want coverage beyond your car insurance policy, a personal umbrella type policy may fit your needs.
AAA offers personal umbrella insurance in CA, TX, HI, NM, ME, NH, and VT.
Insurance discounts
One of the many benefits of choosing AAA insurance is our extensive list of discounts. We understand that every policyholder has unique needs and circumstances, which is why we offer a variety of discounts that can help you save money on your insurance premiums.
Take a look at all the AAA auto insurance discounts that you could qualify for.
Your policies & coverage
Log in to your account to view and manage your auto policy details, review your coverage amounts, and enroll in paperless billing.
AAA agents are available to help you file a claim, and to answer questions about your coverage, limits, or deductibles.
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