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Liability car insurance covers bodily injury and property damage

Liability insurance coverage protects other drivers from bodily injury or property damage you might cause in an at-fault accident. It is the most basic form of auto insurance and does not cover you or your motor vehicle in an accident. It is required by nearly every state in order to legally drive and register your vehicle.

Liability coverage comprises two key coverages: bodily injury and property damage liability.

  • Bodily injury covers the medical bills for which you are responsible in a collision. Bodily injury insurance is allocated on a per-person and per-accident bases.
  • Property damage covers the property damage you cause — to a vehicle, structure, bicycle, or other property.

Useful liability coverage terminology

When you see coverage amounts in a quote or policy, you might be a little confused about what each number actually means. For example, 50/100/50.  The following table can help you understand exactly how these numbers apply when it comes to your car insurance coverage. 

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Limit Coverage description
50/ $50,000 in bodily injury liability coverage per person
100/ $100,000 in bodily injury coverage per incident
50 $50,000 in property damage liability per incident

The amount of liability coverage you carry depends on your personal preference and the laws in your state. Because car insurance is regulated at the state level, each state sets minimum policy limits for liability coverage.

In this article, we'll discuss the basic components of liability car insurance and how much it costs:

  • Liability covers damages you cause to other drivers and their property.
  • Liability covers attorney's fees if you are sued because of an accident.
  • Liability insurance is mandatory in all states except New Hampshire.
  • Liability insurance costs vary depending on the level of coverage you choose and the company from which you purchase a policy.
  • What other varieties of liability insurance exist?
  • How much liability insurance are you required to carry?

Bodily injury liability coverage

Bodily injury liability is a type of car insurance that covers injuries caused by an at-fault driver. Alongside physical injuries, bodily injury liability covers pain and suffering, loss of income, and other expenses for which you may be deemed liable after a vehicle collision. Bodily injury liability insurance is mandatory coverage in every state except Florida and New Hampshire and helps to cover:

  • Medical bills caused by injuries
  • Emotional and physical pain or suffering
  • Wages lost or diminished earning capacity caused by accident

Property damage liability coverage

Property damage liability coverage pays for damage to another person's property or any loss-of-use costs for which you're found liable. Property damage liability coverage helps to cover expenses like:

  • Vehicle damage and repairs
  • Repair of damaged structures
  • Debris removed as a result of an incident (trees, signage, etc.)
wrecked car

Other uses for liability coverage

Liability coverage can also cover your legal fees if you are sued because of an accident. If you were to lose your case, your liability coverage would be likely to assist in the settlement up to your coverage limits. Any amount beyond your coverage limit must be paid out of pocket.


How much does liability insurance cost?

Within any facet of car insurance, how much you pay for liability car insurance will vary. For a 30-year-old male driving a 2016 Honda Civic with no accidents, the average cost of a 50/100/50 liability policy is $64 per month.

Average rates for liability coverage
Coverage Avg. Annual Premium Avg. Monthly Premium
State Minimum Liability Only $597 $50
50/100/50 BI/PD Liability Only $764 $64
100/300/100 BI/PD Liability Only $748 $62
Updated: 09/29/22.

Dynamic auto insurance data methodology

Methodology: The auto insurance rates displayed above and throughout this page are dynamic, meaning the data will refresh when the most recent information is made available. Rates are based on a sample driver profile — a 30-year-old single male driver with a Honda Accord and full coverage. This profile was adjusted based on common pricing factors used by major car insurance companies, like age, coverage level, driving record and others.

Which insurance company has the cheapest liability insurance rates?

Using the methodology outlined here, we compared rates for liability-only auto insurance by coverage levels.

Average rates for state minimum liability coverage
Company Avg. Annual Premium
USAA $434
GEICO $451
State Farm $583
Nationwide $603
Progressive $693
Farmers $718
Allstate $729
Updated: 09/29/22.
Average rates for 50/100/50 liability coverage
Company Avg. Annual Premium
USAA $549
GEICO $624
Nationwide $711
State Farm $756
Progressive $881
Allstate $934
Farmers $945
Updated: 09/29/22.
Average rates for 100/200/100 liability coverage
Company Avg. Annual Premium
USAA $534
GEICO $608
Nationwide $683
State Farm $726
Farmers $856
Progressive $873
Allstate $925
Updated: 09/29/22.

USAA is the cheapest across the board for liability-only car insurance at all coverage levels. If you do not qualify for USAA, GEICO is the second-cheapest option. Depending on your individual driving profile, your premium could vary. Use our rates as estimates and begin your search for liability insurance with USAA and GEICO.

Although carrying high liability limits costs more, it can save you money in the long run. Not only will exceeding your limits leave you responsible for any additional costs, but a history of low coverage is also considered a risky driving factor by auto insurance companies. Any time your insurance company views you as a potentially risky client, you can expect a higher premium as a result.

Next, we'll examine how your rate will change if you opt for collision and comprehensive coverage on top of your required liability insurance. The addition of these physical coverages is what makes a policy full coverage. The driver profile used for the following analysis has a $1,000 deductible.

USAA logo

USAA and GEICO are the cheapest insurance companies for full coverage insurance.

On average, expect your rate to increase by about 56% if you add comprehensive and collision coverages to your policy. Liability-only policies tend to be the cheapest for a reason — they don't protect you or your vehicle if you're involved in a collision.

Our sample driver profile may not perfectly match your personalized pricing. Submit your zip code below to compare car insurance quotes side-by-side and ensure you get the best insurance at the lowest price.

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Types of liability insurance

Most large auto insurance companies in America offer a variety of liability insurance coverage options. These commonly include:

  • Commercial auto insurance: For company vehicles, a commercial auto insurance policy may be necessary to cover gaps a personal policy does not cover. Commercial insurance policies offer additional liability coverage for business vehicles such as trucks and transportation vehicles. A commercial auto insurance policy would be useful in a situation where an employee backs into another vehicle on a job site.
  • Business owners policy (BOP): A BOP is similar to a Commercial Auto Insurance policy but offers additional property protections. This policy can help to cover store merchandise or equipment, expenses caused by business interruption, and on-property injury costs. If a hurricane were to destroy your shop, a BOP could help cover the cost of repairs and offer employees some compensation while the business is interrupted.
  • Professional liability insurance (errors and omissions insurance): This type of policy covers costs stemming from lawsuits for professional errors. These include being sued for negligence or giving bad professional advice.

What doesn't liability insurance cover?

The big omission of liability car insurance is it does not cover any damage or bodily to you or your vehicle. Physical coverage to your vehicle, aka comprehensive and collision coverage, are separate coverage you can elect to add to your car insurance policy.

What is not covered by liability insurance?

  • Collision Coverage: If you drive a valuable vehicle, i.e., worth more than $4,000, consider adding this coverage to protect your vehicle from damage by striking a fixed object (such as a wall or another vehicle)
  • Comprehensive Coverage: Usually paired with collision coverage, comprehensive coverage protects your vehicle from incidents not covered by collision coverage. This includes theft, vandalism, or animal damage.
  • Uninsured/Underinsured Motorist Coverage: This coverage protects you and your vehicle from damage done by a driver without insurance - or someone with insufficient insurance. Like liability coverage, it is broken down into property damage and bodily injury coverage options. This coverage can also apply if you're injured by a hit-and-run driver.
  • Personal Injury Protection (PIP): This add-on provides assistance for medical expenses and work-loss coverage after an accident, independent of fault. If you don't have health insurance, PIP is worth considering. This insurance policy is commonly coupled with no-fault insurance.

Liability insurance does not cover damage or bodily injury to you or your vehicle - physical coverage to your vehicle would be separate coverage,


Other liability insurance considerations

Per-occurrence limit vs. split limit policies

Different policies and companies can structure their liability limits differently. A per-occurrence limit is the most your policy will pay after one occurrence. For example, if you have a per-occurrence limit of $50,000, that is all you will receive after an at-fault accident for the other driver's bodily injury and property damage.

A split limit policy is more common and is what we described above. You will have separate amounts of coverage for your property damage and bodily injury. Generally, a split limit policy is more recommended than a per-occurrence policy.

How much liability insurance do you need?

Each state has its own mandatory liability auto insurance minimums. While we've listed the minimum amounts of liability insurance required by state at the end of this section, it's often a good idea to carry more than the minimum. We generally recommend limits above 50/100/50 - especially if you have financial assets.

Although you might save a few bucks by dropping coverage, it's not recommended to maintain a low level of liability car insurance coverage because:

  • You are responsible for any remaining damage not covered by your insurance
  • You could be perceived as high-risk by insurance companies
car insurance coverage

You're responsible for damages not covered by your property damage liability coverage:

Because some states have very low property damage liability limits, you end up being responsible for any damage not covered by your insurance. Let's say you're a California resident who totals another driver's 2019 Ford F150 - listed at $28,155 - in an at-fault accident. In California, mandatory minimum liability car insurance covers $5,000. You would be responsible for the remaining $23,155. Depending on your financial situation, this could be a tricky hole to climb out of without sufficient levels of property damage liability coverage.

You appear as a high-risk driver to insurance companies:

Carrying your state's minimum liability coverage not only leaves you on the hook for any damages leftover from a claim but also stands out as a red flag for insurers. If you elect to carry high liability limits, you shoulder some of the insurance company's financial responsibility and risk. If you carry the bare minimum of property damage and bodily injury liability car insurance, you pass more risk along to the insurer - leading to more expensive premiums, in many cases.

To avoid higher insurance rates, consider keeping your liability coverage at 100/300/100, if possible, and find out more about how much car insurance coverage you need.

 

If you carry only the bare minimum of insurance, you pass more risk along to the insurer - which can lead to more expensive premiums.


State-by-state minimum liability limits

Explore the table below to learn how much liability insurance you need in your state. Or, use The Zebra to gather quotes and get coverage today.

Alabama 25/50/25
Alaska 50/100/25
Arizona 25/50/15
Arkansas 25/50/25
California 15/30/5
Colorado 25/50/15
Connecticut 25/50/25
Delaware 25/50/10
Florida —/—/10
Georgia 25/50/25
Hawaii 20/40/10
Idaho 25/50/15
Illinois 25/50/20
Indiana 25/50/25
Iowa 20/40/15
Kansas 25/50/25
Kentucky 25/50/25
Louisiana 15/30/25
Maine 50/100/25
Maryland 30/60/15
Massachusetts 20/40/5
Michigan 50/100/10
Minnesota 30/60/10
Mississippi 25/50/25
Missouri 25/50/25
Montana 25/50/20
Nebraska 25/50/25
Nevada 25/50/20
New Hampshire  25/50/25
New Jersey 15/30/5
New Mexico 25/50/10
New York 25/50/10
North Carolina 30/60/25
North Dakota 25/50/25
Ohio 25/50/25
Oklahoma 25/50/25
Oregon 25/50/20
Pennsylvania 15/30/5
Rhode Island 25/50/25
South Carolina 25/50/25
South Dakota 25/50/25
Tennessee 25/50/15
Texas 30/60/25
Utah 25/65/15
Vermont 25/50/10
Virginia 30/60/20
Washington 25/50/10
Washington D.C. 25/50/10
West Virginia 25/50/25
Wisconsin 25/50/10
Wyoming 25/50/20

Compare rates and find the policy that's right for you today.

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RECENT QUESTIONS

Parked car insurance so I can get tags for my vehicle

There's a couple of things to think about here. First, there isn't really anything for parked car insurance.
Oct 5, 2018 Mesa, AZ

Is it necessary to get umbrella insurance with uninsured / uninsured coverage?

Umbrella insurance provides additional liability coverage above and beyond what you have on your auto and homeowners policies. This protects your assets in the event that you are sued for injury or damage that you may have caused to another party for which you are liable.
Aug 2, 2017 Columbus, OH

What happens when the other driver doesn't have insurance and I only have liablity?

Thank you for your question. I would contact your insurance company.
Jun 19, 2019 Addison, TX

If I insure a vehicle owned by my parents, could they be sued if I were involved in an accident?

While it's quite possible that the liability portion of your policy would provide sufficient coverage for damage you may cause in an accident, your parents may be subject to "vicarious liability" since they technically own the vehicle. This means that it is possible for them to be sued if you hurt someone else in a crash.
Jul 1, 2017 Raleigh, NC

Ava Lynch photo
Ava LynchSenior Analyst

Ava joined The Zebra as a writer and licensed insurance agent in 2016. She now works as a senior analyst, providing insights and data analysis as one of The Zebra's property and casualty insurance experts.

Ava’s insurance career began as an agent with Farmers Insurance. Over the years, she has become an authority in all things property and casualty insurance, helping her to write informative guides for shoppers.

Ava’s work has been cited in publications such as InvestopediaThe BalanceMoney.comLiberty Mutual, U.S. News & World Report, GasBuddy, Car and Driver and Yahoo! Finance.

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
  • The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.
  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.