Liability insurance is beneficial to the user in case that a car accident results in injuries or death to another person. In that case the insurance company would cover a percentage of the damages done to the person. The compensation for damages done to property is less significant. Liability insurance is compulsory and it gives more complete services than car insurance. Some of the services offered are: travel assistance, legal support and driver's insurance.

Any car traveling in Spain is required by law to have liability insurance. It has been established as a requirement so that in case of an accident, the insurance of the party responsible for the accident covers the cost of repairing the damaged car. Liability insurance is useful when there is a claim and the party that caused the accident cannot afford to pay the damages resulting from it.

Unlike normal car insurance, liability insurance covers people who did not have anything to do with the accident: a passerby, another car, etc. Most of liability insurance will provide coverage to the car regardless of the person driving it. Meaning that the insurance will give coverage even when you let someone else use your car. The compensation given by the insurance company will be reduced if the driver is under 25 years old and has an expired driver's license.

Some countries, like Spain, require liability insurance by law. This means that in order to drive your car you need to have it. This insurance guarantees that the insured will pay, through the insurance company, for the damage done to a third party.

The biggest benefit of this kind of insurance is that you have the peace of mind that if you were in an accident and another person was injured, it is the insurance company and not you who pays for the damage.

Nevertheless, liability insurance does not cover what happens to the car of the insured in the accident.

Who buys only liability insurance? Those who have an impeccable driving record and are convinced they have little chance of an accident. Generally, they look for insurance that is not very expensive and that covers third parties in case of accident. If you buy a new vehicle, this insurance will not be enough because liability insurance does not give protection for the damages caused to your own car.

Liability insurance will not give coverage if the insured was involved in an accident while under the influence of alcohol or drugs or if the car was stolen.