What Is Liability Car Insurance Coverage?

Liability car insurance covers injuries and property damage you cause to others in an at-fault accident. It's required in most states and pays up to your policy limits. Learn what liability car insurance covers, what it doesn't cover, state minimum requirements and average costs.

Find out if you're overpaying for car insurance below.

Written by Mark Fitzpatrick

Updated: May 14, 2026

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Liability car insurance pays for injuries and property damage you cause to others when you're at fault in an accident. It covers the other driver's medical bills, lost wages, legal fees and vehicle repairs, but not your own costs. Two coverage types make up a standard liability policy: bodily injury liability, which pays for injuries to others, and property damage liability, which pays for damage to others' property.

Policy limits appear as three numbers. A 100/300/50 policy pays up to $100,000 per injured person, $300,000 per accident and $50,000 for property damage. Anything beyond those limits comes out of your pocket.

How Does Liability Car Insurance Coverage Work?

Your insurer pays the other driver's expenses up to your policy limits when you're at fault. If a lawsuit follows, your liability coverage handles legal defense costs and any judgment against you.

Most policies split liability into two parts: bodily injury liability and property damage liability. Each has separate limits shown in your policy documents.

Bodily Injury Liability

Bodily injury liability covers medical expenses, lost wages and legal fees if you injure someone in an at-fault accident. It pays for the other party's costs, not your own.

What bodily injury liability covers:

Emergency room visits and hospital stays
Surgery or physical therapy
Lost income from missed work
Legal defense fees if you're sued
Funeral costs if the accident is fatal
Pain and suffering damages awarded in court

Your policy shows bodily injury limits as two numbers (like 100/300 in a 100/300/50 policy). The first number ($100,000) is the maximum paid per person injured. The second number ($300,000) is the maximum paid per accident, regardless of how many people are injured.

Property Damage Liability

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.

What property damage liability covers:

Repairing another driver's car
Replacing a totaled vehicle
Fixing a damaged fence, mailbox or garage
Legal fees if you're sued for property damage
Rental car costs for the other party while their car is repaired

Property damage limits appear as the third number in your policy (the 50 in 100/300/50). This means your insurer pays up to $50,000 for property damage per accident.

SPLIT LIMITS VS. COMBINED SINGLE LIMIT

Most policies use split limits (100/300/50), which divide coverage into separate caps for per-person injury, per-accident injury and property damage. Some insurers offer combined single limit (CSL) coverage instead, giving you one total amount (like $300,000) to cover any mix of injuries and property damage in an accident. CSL offers more flexibility if accident costs don't split evenly. For example, if you cause $200,000 in injuries but only $50,000 in property damage, a $300,000 CSL covers everything, while a 100/300/50 policy would max out the per-person limit and leave you exposed.

What Does Liability Insurance Not Cover?

Liability insurance pays for damage you cause to others in at-fault accidents. It doesn't cover your own medical bills, vehicle repairs, replacement costs or lost wages. For protection against your own costs, you need comprehensive and collision coverage for vehicle damage, and medical payments coverage (MedPay) or personal injury protection (PIP) for medical expenses.

You're also personally responsible for costs exceeding your policy limits. The injured party can pursue your savings, income or other assets to recover the difference.

How Much Liability Insurance Do You Need?

Most states require drivers to have auto insurance coverage, with the exception of New Hampshire. While minimum car insurance requirements vary by state, liability coverage is always required.

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	not required	not required	$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

California minimums reflect SB 1107 limits effective January 1, 2025. In most states, the legal minimum covers far less than what a real accident costs. A serious injury can run well into six figures.

*We analyzed 83,056 quotes from 46 insurers across 473 ZIP codes to show what drivers actually pay at these minimums.

State minimums set the floor. Your bodily injury limits determine the maximum your insurer pays for injuries you cause to others in an accident. Anything beyond your limits comes out of your pocket.

How to Determine Your Liability Coverage Needs

Minimum liability meets the legal requirement in most states, but it won't protect your assets in a serious accident. If the other driver's bills exceed your policy limits, you pay the difference out of pocket. Your savings, home equity and wages are all exposed.

Match your liability limits to your net worth. Drivers with significant assets should consider 250/500/100 limits plus a $1 million to $2 million umbrella policy. Moving from 25/50/25 to 100/300/100 costs $20 to $30 more per month and quadruples your protection.

Teen drivers on the policy, frequent highway driving and using your car for business all increase your liability exposure regardless of your assets. If any of those apply, higher limits are worth the extra cost.

How Much Does Liability Car Insurance Cost?

Liability insurance costs vary by state based on minimum requirements, accident rates, medical costs and local regulations. The national average cost for liability-only coverage is $726 per year or $60 per month.

Your rates depend on your driving history, age, location and coverage limits. The table below shows average liability premiums by states.

The $726 national average covers liability-only at state minimums, but your actual cost depends heavily on where you live. States with higher minimums pay more to insure than states where the legal floor is lower. Maine and Virginia require $50,000 per person in bodily injury coverage. States like Arizona and Colorado set that floor at $25,000. A clean driving record and good credit help, but your state's minimums set the baseline your premium builds from.

*We analyzed rates based on 83,056 quotes from 46 insurers across 473 ZIP codes. They reflect a 40-year-old male driver with a clean driving record and good credit.

Property damage claims cover more than just the other car. Your policy also pays for damage you cause to other vehicles and structures like guardrails, signs or buildings.

What Is Liability Car Insurance Coverage: Bottom Line

Liability car insurance pays for injuries and property damage you cause to others in an at-fault accident. Most states require it, but minimum limits rarely cover the full cost of a serious accident.

Compare quotes from at least three insurers before buying. If cost is your priority, see our analysis of the cheapest liability-only car insurance.

Liability Auto Insurance: FAQ

Does liability insurance cover my car if I am at fault?

No. Liability insurance only covers damage and injuries you cause to others when you're at fault. It doesn't pay for repairs to your own vehicle or your medical bills.

You need collision coverage to repair your car after an at-fault accident and comprehensive coverage to protect against theft, vandalism and weather damage. Without these coverages, you'll pay for your own vehicle repairs out of pocket.

How much liability coverage do I really need?

State minimums meet legal requirements but often don't provide enough protection in serious accidents. Match your liability limits to your net worth and assets. Budget-conscious drivers often choose 50/100/50, many households select 100/300/100 and higher-asset families opt for 250/500/100 plus a $1 million to $2 million umbrella policy.

Pick limits high enough that a serious claim won't exceed them. The injured party can pursue your savings, income or other assets to recover amounts beyond your coverage.

Will liability insurance cover me if I'm driving someone else's car?

Your liability coverage follows you when driving someone else's car with permission. If you cause an accident, your policy covers the other party's injuries and property damage up to your limits.

The car owner's insurance acts as secondary coverage if your limits aren't enough. Both policies can apply in serious accidents, with the owner's policy covering amounts exceeding your limits.

Does my liability insurance cover me when I drive a rental car?

Your liability coverage extends to rental cars for third-party injuries and property damage. If you cause an accident in a rental, your policy pays for the other driver's medical bills and vehicle repairs up to your limits.

Your liability insurance doesn't cover damage to the rental car itself. You need the rental company's collision damage waiver or your own collision coverage for rental vehicle damage protection.

Can I have liability-only on a financed car?

You can choose liability-only coverage, but most lenders require comprehensive and collision to protect the vehicle. If you drop full coverage, your lender may add force-placed insurance at higher cost or consider you in default of your loan terms.

Lenders require full coverage because they own the vehicle until you pay off the loan. Liability-only leaves the lender exposed if your car is totaled or stolen.

What is business liability car insurance and who needs it?

Business liability car insurance covers accidents while using your vehicle for work like deliveries, transporting clients or making sales calls. Personal auto policies exclude business use, leaving you personally liable for damage or injuries during work activities.

You need business liability if you drive for rideshare or delivery services, transport clients or goods for a fee or make frequent business trips beyond commuting. Rideshare drivers can add an endorsement to their personal policy, while businesses need a commercial auto policy.

How do liability limits work in multi-car accidents?

If you have 100/300/50 coverage and injure three people with $150,000 in bills each, your policy caps payments at $100,000 per person. That's $300,000 total across all three, which also hits the per-accident limit. You're personally responsible for the remaining $50,000 per person, or $150,000 total.

Liability Car Insurance Costs: Our Methodology

Liability-only costs vary widely by state based on minimum requirements, accident rates and local regulations. We analyzed liability rates across all 50 states to show you typical costs for a standard driver profile.

What We Analyzed

We collected 83,056 quotes from 46 insurance companies across 473 ZIP codes using data from state insurance departments and Quadrant Information Services. Our analysis shows what drivers pay for liability-only coverage nationally and in each state.

Our Standard Driver Profile

We used a 40-year-old man driving a Toyota Camry LE with a clean driving record to calculate average costs.

Your actual rates will differ based on your age, driving history, vehicle type, credit score and specific location within your state. The averages shown help you understand typical liability costs in your area.

Coverage Level

We analyzed state minimum liability coverage, which includes the legal requirements for bodily injury and property damage you cause to others. State minimums vary significantly—from as low as 25/50/25 in some states to 100/300/50 in others.

Liability-Only Car Insurance: Related Pages

About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident insurance expert. He has spent nearly a decade analyzing the market, first at LendingTree and now at MoneyGeek, where he has produced original research on hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.

He covers economics and insurance at MoneyGeek, and his work has been featured in The Washington Post, The New York Times and NPR, among other outlets.

Like all MoneyGeek analysts, he draws on independent cost and consumer experience data, and no insurance company partnership influences his recommendations.

Fitzpatrick earned his degrees from Johns Hopkins University (M.A. Economics and International Relations) and Boston College (B.A.). He began his career in financial risk management at State Street. He's also a five-time “Jeopardy!” champion.

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Sources

Insurance Information Institute, Inc. "Automobile Financial Responsibility Laws By State." Accessed May 29, 2026.