Liability insurance covers you in the event you are in a covered car accident and it is determined the accident is a result of your actions. Liability insurance will cover the cost of repairing any property damaged by an accident as well as the medical bills from resulting injuries. Most states have a minimum requirement for the amount of liability insurance coverage that drivers must have. However, it is usually a good idea to have liability insurance that is above your state’s minimum liability coverage requirement. This will provide extra protection in the event you are found at fault for an accident where you are responsible for any claims that exceed your coverage’s upper limit. You wouldn't want to run the risk of having to pay a large amount of money because your policy limit has been exceeded.