Updated: July 11, 2025
Advertising & Editorial Disclosure
In car insurance, liability coverage is mandatory in most states except New Hampshire.
Liability coverage pays for third-party injuries and property damage up to your policy limits. Anything exceeding your limits is your responsibility.
Liability insurance does not cover your injuries, damages to your vehicle or protection against uninsured or underinsured drivers.
In car insurance, liability coverage pays for damages and injuries you cause to others in an at-fault accident. It typically includes bodily injury liability, which covers medical expenses, lost wages and property damage liability, which pays for damage to someone else’s vehicle or property.
Bodily injury liability in car insurance covers the medical expenses, lost wages and legal fees if you injure someone in an accident where you're at fault. It protects you financially by paying for the other party’s costs, not your own.
Property damage liability covers the cost of repairing or replacing someone else’s property when you’re at fault in a car accident. It doesn’t cover your own vehicle or belongings, just the damage you cause to others.
Liability coverage in car insurance pays for injuries and property damage you cause to others in an at-fault accident. Understanding how the claims process works can help you respond quickly and avoid costly mistakes.
Contact your insurer immediately after the accident to start the liability claims process. Share key details like the time, location, people involved, and any police report number.
Your insurance company will assign a claims adjuster to determine fault. They’ll collect and review evidence, including photos, witness statements, and police reports.
If you’re found at fault, your liability insurance will apply up to your coverage limits. Your insurer will inform you of the total payout amount and what it covers.
Your insurance company will send payment directly to the injured party or their insurer. Although you won’t receive the money yourself, it will be recorded as a liability claim under your policy.
After a liability claim is filed, your insurance premium may go up at renewal. The amount depends on the claim size and your overall driving and claims history.
If someone decides to sue you after an accident, your liability coverage provides legal defense up to your policy limits. Your insurance company assigns experienced attorneys to represent you and covers all court costs and legal fees. This protection can be worth hundreds of thousands of dollars in complex cases.
Your insurer has a strong incentive to defend you vigorously since they're ultimately responsible for paying any judgment up to your policy limits. They'll work to minimize both your exposure and their own financial liability.
Liability coverage in car insurance covers you, the policyholder, and in many cases, anyone driving your car with your permission. On the other hand, it doesn’t cover people driving your car without permission or using it for commercial purposes unless stated in the policy.
Who is covered:
Who isn’t covered:
Liability insurance never covers your medical bills and rehabilitation costs, repairs to your vehicle or replacement costs, rental car expenses while yours is being fixed, or lost wages if you can't work due to injuries. For protection against these costs, you need comprehensive and collision coverage.
You're personally responsible for medical costs exceeding your per-person limit, total accident costs beyond your per-accident limit, property damage above your coverage amount, and legal judgments that surpass your total coverage.
Most policies cover accidents in the United States and Canada, though international travel may require additional coverage. Coverage applies to accidents during your policy period, regardless of when claims are filed.
Liability coverage doesn't apply to intentional damage you cause, commercial use of your personal vehicle, racing or speed contests, damage while committing a crime, or using your car for rideshare without proper coverage.
If an uninsured driver hits you, liability insurance won't help. You need uninsured motorist coverage for protection.
Most states require drivers to have auto insurance coverage, but only New Hampshire and Virginia don't. Although the minimum car insurance requirements vary by state, liability coverage is always part of it.
State | Bodily injury liability (per person) | Bodily injury liability (per accident) | Property damage liability (per accident) | Other car insurance requirements |
|---|---|---|---|---|
Alabama | $25,000 | $50,000 | $25,000 | None |
Alaska | $50,000 | $100,000 | $25,000 | None |
Arizona | $25,000 | $50,000 | $15,000 | None |
Arkansas | $25,000 | $50,000 | $25,000 | None |
California | $30,000 | $60,000 | $15,000 | None |
Colorado | $25,000 | $50,000 | $15,000 | None |
Connecticut | $25,000 | $50,000 | $25,000 | Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident |
Delaware | $25,000 | $50,000 | $10,000 | Personal injury protection: $15,000 per person $30,000 per accident |
District of Columbia | $25,000 | $50,000 | $10,000 | Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident Uninsured/underinsured property damage: $5,000 (subject to $200 deductible) |
Florida | $10,000 | $20,000 | $10,000 | Personal injury protection: $10,000 |
Georgia | $25,000 | $50,000 | $25,000 | None |
Hawaii | $20,000 | $40,000 | $10,000 | Personal injury protection: $10,000 |
Idaho | $25,000 | $50,000 | $15,000 | None |
Illinois | $25,000 | $50,000 | $20,000 | Uninsured motorist bodily injury: $25,000 per person $50,000 per accident |
Indiana | $25,000 | $50,000 | $25,000 | None |
Iowa | $20,000 | $40,000 | $15,000 | None |
Kansas | $25,000 | $50,000 | $25,000 | Personal injury protection: $4,500 Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident |
Kentucky | $25,000 | $50,000 | $25,000 | Personal injury protection: $10,000 |
Louisiana | $15,000 | $30,000 | $25,000 | None |
Maine | $50,000 | $100,000 | $25,000 | Medical payments: $2,000 Uninsured/underinsured motorist bodily injury: $50,000 per person $100,000 per accident |
Maryland | $30,000 | $60,000 | $15,000 | Personal injury protection: $2,500 Uninsured/underinsured motorist bodily injury: $30,000 per person $60,000 per accident Uninsured motorist property damage: $15,000 |
Massachusetts | $20,000 | $40,000 | $5,000 | Personal injury protection: $8,000 per accident Uninsured/underinsured motorist bodily injury: $20,000 per person $40,000 per accident |
Michigan | $20,000 | $40,000 | $10,000 (for damage your vehicle does to property in another state) | Personal injury protection: Unlimited per person Unlimited per accident Property protection: $1 million |
Minnesota | $30,000 | $60,000 | $10,000 | Personal injury protection: $40,000 per person Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident |
Mississippi | $25,000 | $50,000 | $25,000 | None |
Missouri | $25,000 | $50,000 | $25,000 | Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident |
Montana | $25,000 | $50,000 | $20,000 | None |
Nebraska | $25,000 | $50,000 | $25,000 | Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident |
Nevada | $25,000 | $50,000 | $20,000 | None |
New Hampshire | $25,000 | $50,000 | $25,000 | Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident |
New Jersey | $15,000 | $15,000 | $5,000 | None |
New Mexico | $25,000 | $50,000 | $10,000 | None |
New York | $25,000 | $50,000 | $10,000 | Personal injury protection: $50,000 per person Liability for death: $50,000 per person Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident |
North Carolina | $30,000 | $60,000 | $25,000 | Uninsured/underinsured motorist bodily injury: $30,000 per person $60,000 per accident Uninsured/underinsured motorist property damage: $25,000 |
North Dakota | $25,000 | $50,000 | $25,000 | Personal injury protection: $30,000 per person Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident |
Ohio | $25,000 | $50,000 | $25,000 | None |
Oklahoma | $25,000 | $50,000 | $25,000 | None |
Oregon | $25,000 | $50,000 | $20,000 | Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident |
Pennsylvania | $15,000 | $30,000 | $5,000 | Medical payments coverage: $5,000 |
Rhode Island | $25,000 | $50,000 | $25,000 *or $75,000 combined single limit | None |
South Carolina | $25,000 | $50,000 | $25,000 | Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident |
South Dakota | $25,000 | $50,000 | $25,000 | Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident |
Tennessee | $25,000 | $50,000 | $15,000 | None |
Texas | $30,000 | $60,000 | $25,000 | None |
Utah | $30,000 | $65,000 | $25,000 | Personal injury protection: $3,000 per person Uninsured motorist coverage: $30,000 per person $65,000 per accident |
Vermont | $25,000 | $50,000 | $10,000 | Uninsured/underinsured motorist bodily injury: $50,000 per person $100,000 per accident Uninsured/underinsured property damage: $10,000 |
Virginia | $50,000 | $100,000 | $25,000 | None |
Washington | $25,000 | $50,000 | $10,000 | None |
West Virginia | $25,000 | $50,000 | $25,000 | Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident |
Wisconsin | $25,000 | $50,000 | $10,000 | Uninsured/underinsured motorist bodily injury: $25,000 per person $50,000 per accident |
Wyoming | $25,000 | $50,000 | $20,000 | None |
Minimum liability insurance is the legal bare-bones requirement in most states — but it often isn’t enough to fully protect you in a serious accident. If the damages exceed your policy limits, you’ll have to pay the difference out of pocket.
If your net worth exceeds $500,000, you’re more likely to be sued after a serious accident. Minimum liability insurance won’t cover large legal judgments, putting your savings, home or business at risk. Higher car liability insurance limits and umbrella coverage help protect your financial assets.
Frequent highway driving or long commutes raise your chances of high-cost accidents. These situations often involve severe injuries and property damage that exceed minimum car liability insurance limits. Upgrading your liability coverage for car insurance offers stronger financial protection.
Teen drivers face accident rates nearly three times higher than experienced drivers, making them significant liability risks. Minimum liability coverage may not be enough to cover injuries or damages caused by inexperienced drivers. Higher car liability insurance limits can better protect your family from financial loss.
Owning multiple cars increases the chances of filing more than one liability claim. Standard car liability coverage may not stretch far enough in multi-claim situations. Higher limits help ensure you’re fully protected across all vehicles and drivers.
Using your car for business exposes you to risks that personal auto insurance may not cover. If you cause an accident while working, basic car liability insurance might leave you with coverage gaps. Higher liability limits and business-use coverage help fill those gaps.
City driving means more accidents, higher medical bills and expensive repairs. Minimum car liability insurance may fall short in dense urban areas with complex claims. Boosting your liability coverage for car insurance helps protect you from big-city risks.
If liability claims exceed your car insurance coverage limits, you’re personally responsible for the remaining costs. This can include paying out of pocket for medical bills, property damage, or legal judgments. The injured party may pursue your savings, income, or other assets to recover the difference. Choosing higher liability coverage limits helps protect you from this financial risk.
Liability insurance costs vary dramatically by state due to different minimum requirements, accident rates, medical costs and legal environments. On average, a state-minimum liability-only car insurance policy costs $1,273 per year, but this average ranges from $653 to $1,708, depending on your state.
Comparing car insurance quotes is an excellent and convenient way to get the best deal possible. Securing an online estimate typically involves providing certain information, such as your ZIP code, age range, whether or not you currently have coverage, the number of vehicles you want to be insured, if you're a homeowner, your credit score range, any traffic incidents and whether or not you're a military member. If you're uncomfortable sharing personal details, you may request car insurance quotes anonymously.
MoneyGeek's calculator can also help you get quick quotes from multiple providers. Use this tool to get accurate estimates based on your needs.
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Jul 18, 2025
| Insurance Carrier | MoneyGeek ScoreMG Score | Average Monthly Payment | |
|---|---|---|---|
| 1 |  Capital Insurance Group | 94 /of 100 | $87 |
| 2 |  GEICO | 82 /of 100 | $109 |
| 3 | 83 /of 100 | $118 | |
| 4 | 83 /of 100 | $129 | |
| 5 | 79 /of 100 | $133 | |
| 6 | 77 /of 100 | $151 |
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
Your driving history plays a major role in how much you pay for car liability insurance. Drivers with accidents, tickets or serious violations like DUIs usually pay more than those with clean records. While minor infractions may raise your rates for several years, maintaining a clean record over time can help lower your premiums.
Young drivers pay much higher rates for car liability insurance because they’re more likely to cause accidents. Teens face the steepest premiums, but rates usually drop with age and experience, especially after age 25. Older drivers may see slight increases after 70, but they generally still pay less than young drivers.
Where you live dramatically affects your liability costs. Urban areas with heavy traffic, higher crime rates, and more accidents typically cost more than rural locations. Even your specific ZIP code matters: neighborhoods with higher accident rates or theft claims see higher premiums.
State regulations also play a major role. Some states prohibit using certain factors like credit scores or gender in pricing, while others allow these considerations. States with no-fault insurance requirements or high minimum coverage limits generally have higher baseline costs.
In most states, car liability insurance rates are partially based on your credit-based insurance score. Drivers with good credit usually pay less, as insurers link credit history to claim risk. California, Hawaii, Massachusetts and Michigan prohibit using credit scores for auto insurance pricing, so this factor won't affect rates in these states.
The type of car you drive can affect your car liability insurance rates, especially if it’s a high-performance model or has poor safety ratings. How often and how far you drive also impacts pricing; longer commutes and higher mileage increase your accident risk. In contrast, low-mileage drivers who use their cars occasionally may see lower liability premiums.
Higher liability limits cost more, but the increases are often modest compared to the additional protection. Moving from minimum 25/50/25 coverage to 100/300/100 limits typically adds just $20-30 monthly, which is a small price for significantly better financial protection.
The company you choose for liability coverage can significantly impact your annual costs. These price variations reflect different business models and target markets. Some companies focus on digital efficiency to keep costs low, while others invest heavily in agent networks and customer service. Companies like USAA can offer lower rates due to their exclusive membership base, which typically includes more responsible drivers.
Unless you can cover a catastrophic car accident with the money you have on hand, purchasing liability insurance is the best way to protect yourself against being sued over a car accident determined to be your fault. Even the necessary amount required by law might not be enough to protect yourself, but by shopping around and speaking to your insurance agent, you can find a cheap car insurance policy that meets your needs.
Smart shopping and taking advantage of available discounts can significantly reduce your liability insurance costs without sacrificing protection.
Start comparing rates two to four weeks before your current policy expires. This gives you adequate time to research options and make informed decisions without creating coverage gaps that could leave you liable for accidents.
Based on national averages, liability-only premiums range from $653 to $1,708 annually, a $1,055 difference that makes shopping around essential for finding the best rates. That's a 61% difference between the cheapest and most expensive for identical coverage.
Don't overlook smaller regional insurers when shopping. These companies often offer competitive rates with more personalized service than large national carriers. They may also have different risk assessment models that work in your favor.
Maintain a clean driving record to keep your car liability insurance rates low. Avoiding accidents, speeding tickets and serious violations like DUIs helps you qualify for the best rates and safe driver discounts. Even a single violation can raise your premiums for years.
Paying your car liability insurance annually instead of monthly helps you avoid installment fees.
Consider whether six-month or 12-month policy terms work better for your situation. Some insurers offer discounts for longer terms, while others may raise rates more gradually with shorter renewal periods.
Liability insurance refers to policies that only coverage bodily injury and property damage. In this article, we discussed what a liability-only policy covers, how it works and the average costs to help determine whether this coverage is enough for your needs. Drivers who prioritize cost may find liability car insurance attractive since it's usually the most affordable option. However, it also offers the least amount of protection.
MoneyGeek answers frequently asked questions about liability insurance below to help you make a decision about coverage and find a provider:
No. Liability car insurance covers damages and injuries the other driver sustains if you're at fault. However, it only does so up until your policy's limits.
Repairs and medical treatments can be costly, so ensure you have enough car insurance coverage. Otherwise, you might have to dip into your savings to pay for the remaining amount your policy doesn't cover.
Even if you don't own a car, having coverage is essential if you drive regularly. It ensures financial protection if you often borrow someone else's vehicle or rent one.
However, purchasing a standard car insurance policy may not be the wisest choice. You can inquire with various providers to find cheap non-owner car insurance, which may be the better option.
No, New Hampshire and Virginia don't require it, but Virginia charges an uninsured motor vehicle fee of $500 annually. All other states mandate minimum liability coverage.
No, liability insurance only pays for damage and injuries you cause to others. You need comprehensive and collision coverage to protect your own vehicle.
You're personally responsible for costs exceeding your policy limits. This could result in wage garnishment, asset seizure, liens on your property or forced bankruptcy.
Yes, but only if you own your car outright. Lenders require comprehensive and collision coverage on financed or leased vehicles. Consider whether liability-only coverage provides adequate protection.
Consider coverage equal to your net worth as a starting point. If you have significant assets, high income, or young drivers, consider higher limits or umbrella insurance for additional protection.
No, liability coverage doesn't have deductibles. You don't pay anything out-of-pocket when your liability coverage pays claims for damages you cause to others.
Generally yes, if you have permission to drive. However, the car owner's insurance typically pays first, and your coverage provides secondary protection.
Your per-person limit applies to each injured individual, but your per-accident limit caps total payouts. If you have 50/100/25 coverage and injure three people requiring $40,000 each in medical care, you'd pay $20,000 out-of-pocket ($120,000 total exceeds your $100,000 per-accident limit).
MoneyGeek gathered and analyzed rates using a sample driver profile to determine company averages for the cost of liability-only insurance, how liability-only rates compare to full coverage rates and how rates may change for risky driver profiles (drivers with at-fault accidents and tickets).
Data Sources and Depth
We collected data from state insurance departments and Quadrant Information Services and analyzed 83,056 quotes from 46 companies across 473 ZIP codes.
Sample Driver Profile
To determine overall average annual car insurance rates, we used the following sample driver profile:
We modified this sample profile by age, driving record and car make/model where specified to provide average rates for a variety of drivers.
Coverage Levels Explained
Rates collected were for policies meeting the minimum requirements in a given state or for increased liability coverage. Increased liability coverage refers to a policy with 50/100/50 liability limits, which is shorthand for the following:
You can choose how much liability coverage you want on either a liability-only or full coverage policy. The difference between liability-only and full coverage insurance is the addition of comprehensive and collision coverage. A liability-only policy does not include comprehensive and collision coverage.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
