Does liability insurance cover a stolen car?

Liability-only insurance is car insurance that covers a third party's property damage or injuries in the event of an accident. The term “liability-only car insurance” is used to distinguish policies with basic coverage from those with collision insurance and comprehensive coverage.

Liability insurance is the only type of auto insurance that is mandatory in almost every state. It’s split into two main categories of coverage: ... read full answerbodily injury liability and property damage liability.

What Liability-only Insurance Covers

• Medical expenses
• Legal fees
• Loss of income
• Pain and suffering
• Funeral costs
• Repairs to/replacement of cars
• Repairs to/replacement of items in the car during an accident
• Repairs to/replacement of other property, like a mailbox, fence, or house

Liability-only insurance is the least expensive car insurance since it provides such minimal coverage. However, driving with only liability insurance can lead to expensive bills for your own property or injuries, which are not covered by liability-only insurance.

Liability-only car insurance is not always an option, either. Some states require drivers to carry other types of insurance as well, like uninsured or underinsured motorist coverage (UM/UIM) and Personal Injury Protection (PIP). And if your car is leased or financed, your lender will likely require you to purchase collision and comprehensive insurance.

For tips on whether liability-only insurance is enough for your situation, check out WalletHub’s guide on how much car insurance to get.

You need enough liability insurance to cover your net worth. Having coverage equal to the value of the assets you own and all the money you have, minus your debt, protects you financially in case of a serious car accident.

When to Carry Only the Minimum Liability Coverage

Although almost every state requires drivers to carry liability insurance, the minimum coverage is not always enough to cover the cost of an accident. It’s always best to carry as much liability coverage as you can afford, especially if you have a high net worth. You can generally get away with a lower property damage liability limit if you want to save, however, since property damage liability claims are usually less expensive than bodily injury liability claims.... read full answer

If you don’t have many assets or think the risk is worth it, you might be comfortable with carrying only the minimum coverage. But no matter what, make sure you’re carrying enough insurance to comply with state law and avoid paying fines for driving uninsured.

Liability Limits on Auto Insurance

Liability limits on auto insurance are the maximum amount that your insurance company will pay for injuries and property damage in accidents that you cause. Liability limits are typically written as three numbers divided by slashes.

For example, Arizona’s liability coverage requirements are 50/30/10. That means drivers need to carry $50,000 in bodily injury liability coverage per person, $30,000 in bodily injury liability coverage per accident, and $10,000 in property damage liability coverage overall.

Why You Need More Liability Insurance Than the State Minimum

Your insurance company will never pay for anything beyond the limits of your policy. Using the Arizona example, if you cause an accident that leads to $70,000 in medical bills for the other driver, you will have to pay for $40,000 if you are only carrying the minimum insurance required. And if you can’t afford to pay the full amount, the other driver can sue, and you can have your assets seized or wages garnished to cover the remainder.

No, car insurance does not cover theft of personal items that are left in your car. Property like your phone, laptop, and other valuables that might be stolen from your vehicle should be listed on your homeowner’s or renter’s insurance policy because they will not be covered by your car insurance.... read full answer

If your vehicle or any of its standard parts are stolen or vandalized, comprehensive car insurance coverage will help pay for the damage to your car and can even replace it in a total-loss situation. Comprehensive insurance only covers permanent, pre-installed features of the car, though—not personal items that may be destroyed or stolen from inside the car.

How Theft Is Covered by Car Insurance

For example, let’s say someone breaks a window to get into your car, breaks open the lock to your glovebox, and steals your smartphone from inside. Comprehensive coverage will pay for your glass claim and any repairs to the car’s interior, like fixing the broken lock and any other damage to the glovebox. But you must have had your phone insured on your homeowner’s policy and file a claim there to recover the cost of replacing the stolen phone.

Remember, comprehensive car insurance usually has a deductible, so you will likely still have to pay some money out of pocket. If you have liability-only coverage, your policy will not cover theft or vandalism at all.