Get free quote in-app

(400K+)

Liability Car Insurance (July 2023)

The Better Way to Shop for Liability Car Insurance

√ Free quotes from 200+ carriers in seconds

√ Lowest rate guaranteed

√ $971 savings per year on average

4.9/5 Rating on the App Store

consumerreports
lifehacker
nationwide
travellers
mapfre
safeco
kemper
national-general
anchor
still-water
bridger
alinsco
commonwealth
suncoast
aspire

Liability car insurance - A comprehensive guide

Liability auto insurance is a form of car insurance policy that is mandated by law in most states. If you cause a car accident—in other words, if you are responsible for an accident—responsibility insurance helps cover the other person's expenses. Liability auto insurance comes in two forms: coverage of personal injury liability and coverage of property damage liability. Drivers in most countries must have all forms of coverage.

Looking for cheap liability car insurance can be a hassle. At present, there are thirteen top insurance companies available in at least five states which offer the cheapest and best liability car insurance. The most affordable providers were mostly not big names, but these insurers could not sell policies everywhere.


youtube-video

Among the significant insurers, State Farm provided the most competitive liability-only coverage in absolute terms, with a six-month quote of only $356, 55 percent less than the average price of $469. For those current or former military members who apply, USAA is by far the cheapest alternative. Its six-month average is just $215. Some smaller insurance firms can have very inexpensive liability insurance. Farm Bureau affiliates cost our sample driver an average of $218 for six months, and Erie, accessible in 12 states and Washington D.C., costs $226.

Your auto insurance policy makes a distinction between the people you may have hurt and the things you might have broken. People are protected by the coverage of bodily injury damages when incidents fall within the scope of property harm. If you purchase auto insurance, you will be able to set different limits (the maximum sums your insurer will pay on a claim) for any of these forms of coverage.

You're likely to need some of both, as every state in the U.S.—except New Hampshire—requires some liability coverage. The sum you need can vary depending on the state and your financial condition. However, you should review the criteria of your form below or speak to a local insurance provider to make sure you have the coverage you need.

Liability auto insurance is intended to cover damages when you cause an accident, but it can be short-lived. Health bills and auto repairs can be too costly, and a split second may be the difference between a regular day and the start of bankruptcy. Liability insurance does not cover the risk of fixing your vehicle or paying medical expenses. This coverage is intended to compensate others for the harm you do behind the wheel. By covering some or all of the costs of an accident, insurance coverage serves as a barrier between an accident and a financial disaster.

There are three critical restrictions on liability insurance in an automobile policy, which you can always see summed up in three numbers. One difference to be remembered—while body limitations are limited per person, property damage liability is limited to an injury limit. If you hit three cars, the cumulative amount your insurer will pay will be the final number.

See what you could save on auto insurance

What is liability only car insurance?

Technically, liability-only auto insurance applies to the purchase of only liability insurance, either for personal harm or for property damages. This compensation only provides for medical treatment and vehicle injury costs to the other party in an accident. An auto insurance policy is another way to define the legal minimum amount of car insurance you can purchase to drive your car.

In 22 states, you need to obtain liability coverage to have minimum coverage. In 28 other states and Washington, D.C., drivers are also required to purchase one or more of the following to satisfy their minimum insurance requirements:

  • Personal injury protection/hospital payments: cover your medical costs (and those of your passengers) following a car accident, regardless of who is at fault.
  • Uninsured motorist coverage: If the other driver is at fault but has no liability coverage, the uninsured motorist coverage would pay for the medical and auto repair bills.

Liability-only coverage is also characterized by what is most noticeably lacking: crash and extensive range. In addition to liability, these two insurance coverages usually make up the most significant portion of your auto insurance bill.

  • Collision compensation covers for damage to your vehicle if you're at fault (or no one is at fault).
  • Comprehensive compensation provides for damages caused by actions of God, such as weather, animals, or vandalism.

What is rental car liability insurance?

A rental car liability insurance usually covers damages to other people's property (e.g., their cars) and medical bills for other people's accidents in an accident that you are legally liable for. In the U.S., every state needs a minimum amount of car insurance liability insurance, so you might already be covered by your personal auto insurance.

Fundamentally, liability auto insurance coverage is part of your auto insurance policy that helps cover the other driver's bills if you cause a car accident. Bodily injury liability helps pay the other driver's medical costs, lost wages, and emergency assistance if you are involved in a car accident, and you are at fault.

Coverage of liability auto insurance

Both sections of the liability insurance cover a wide variety of possible costs. Bodily injury compensation insurance helps pay for medical expenses that the injured party can pay for. It can also pay for rehab therapies or other continuing costs. On top of that, if you hurt someone and they sue you, liability insurance will pay bills of attorney or court costs. Finally, it will compensate for the loss of salaries.

Without liability protection, you will be responsible for all of these expenses yourself.

Harm to a property is a similar scenario. If you hit a car, you will pay for repairs and rental vehicles. If you run into a house, you can pay for any renovations. Property can also include items in a person's car. If you are in a minor fender bender, but the other driver had $4,000 worth of crystal in his trunk, the property damage liability insurance will cover the replacement—and the new bumper.

The importance of liability car insurance

Except for New Hampshire, every state requires drivers to have liability insurance (though Virginia waives liability if you pay $500). Each state sets its minimum standards of insurance coverage, and many require additional forms of insurance. These standards are placed in place by State regulators to protect drivers. If you're in an accident and another driver is at fault, you should be able to get back up and run fast.

Responsibility insurance makes this possible.

Bear in mind that the state-mandated minimums are—minimums. They have not suggested levels of coverage or even default levels. It's the insurance equivalent to a PG-13 film rating. It would help if you were 13 to get in, but that doesn't mean a 27-year-old isn't going to be afraid, insulted, or sick. Your tolerance beyond your bare minimum is up to you.

Level of liability car insurance coverage

Liability auto insurance is intended to cover your finances in the event of an accident. In some cases, it's a particular piece of "car" insurance because your car isn't the thing you're trying to make sure of. Instead, if you're found to be at fault for a bad accident, you want insurance to protect you and your belongings. How much liability insurance you need depends on your net value. Start with the worst-case scenario and work backward.

You hit another car, you total it, and you seriously hurt four people. If you are at fault, you will be liable for the vehicle's value and the medical expenses of all four passengers. Now, you're looking at $500,000 worth of bills to pay for. Can your liability policy cover them? If you don't have enough coverage—that is, if the limits aren't that high—you would be directly liable for any excess. If you can't or won't pay, the people you hurt can sue you for that money. You could end up losing your house or have your income garnished in certain jurisdictions. The more you've got to lose, the more they're going to come for.

The State Liability Insurance Minimums can not cover the value of all of your properties. Know that liability insurance is intended to protect your financial security, so getting more coverage will keep your savings, home, and wages safe if the worst happens. As a general rule of thumb, you may calculate the absolute maximum coverage you will need by calculating your net value. That's just the sum of all the cash you've got and the things you own, minus your debt.

If you don't have many things, there's no reason to sue you, and you might not need any extra coverage. You may also have a higher tolerance to risk. Additional liability coverage is not free, and you can decide that extra money in your wallet is worth more than peace of mind from extra coverage.

See what you could save on auto insurance

Liability car insurance minimum requirements (State by state)

State Requirements
Alabama $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
Alaska $50,000 bodily injury liability per person
$100,000 bodily injury liability per accident
$25,000 property damage liability per accident
Arizona $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$15,000 property damage liability per accident
Arkansas $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
California $15,000 bodily injury liability per person
$30,000 bodily injury liability per accident
$5,000 property damage liability per accident
Colorado $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$15,000 property damage liability per accident
Connecticut $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
$25,000 uninsured/underinsured motorist coverage per person
$50,000 uninsured/underinsured motorist coverage per accident
Delaware $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$10,000 property damage liability per accident
$15,000 personal injury protection per person
$30,000 personal injury protection per accident
Florida $10,000 property damage liability per accident
$10,000 personal injury protection
Georgia $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
Hawaii $20,000 bodily injury liability per person
$40,000 bodily injury liability per accident
$10,000 property damage liability per accident
$10,000 personal injury protection
Idaho $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$15,000 property damage liability per accident
Illinois $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$20,000 property damage liability per accident
$25,000 uninsured motorist coverage per person
$50,000 uninsured motorist coverage per accident
Indiana $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
Iowa $20,000 bodily injury liability per person
$40,000 bodily injury liability per accident
$15,000 property damage liability per accident
Kansas $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
$25,000 uninsured/underinsured motorist coverage per person
$50,000 uninsured/underinsured motorist coverage per accident
Personal injury protection including $4,500 in medical expenses, up to $900 per month for a year for disability or loss of income, $25 per day for in-home services, $2,000 for funeral burial or cremation costs, and $4,500 for rehabilitation
Survivors benefits including up to $900 per month for a year for disability or loss of income and $25 per day for in-home services
Kentucky $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
Louisiana $15,000 bodily injury liability per person
$30,000 bodily injury liability per accident
$25,000 property damage liability per accident
Maine $50,000 bodily injury liability per person
$100,000 bodily injury liability per accident
$25,000 property damage liability per accident
$50,000 uninsured/underinsured motorist coverage per person
$100,000 uninsured/underinsured motorist coverage per accident
$2,000 medical payments coverage
Maryland $30,000 bodily injury liability per person
$60,000 bodily injury liability per accident
$15,000 property damage liability per accident
$30,000 uninsured/underinsured motorist coverage per person
$60,000 uninsured/underinsured motorist coverage per accident
$15,000 uninsured/underinsured property damage coverage per accident
Mass. $20,000 bodily injury liability per person
$40,000 bodily injury liability per accident
$5,000 property damage liability per accident
$20,000 uninsured motorist coverage per person
$40,000 uninsured motorist coverage per accident
$8,000 personal injury protection
Michigan $50,000 bodily injury liability per person
$100,000 bodily injury liability per accident
$10,000 property damage liability per accident outside Michigan
$1 million property protection within Michigan
$250,000* personal injury protection *Lower PIP limits available for certain Medicare and Medicaid recipients
Minnesota $30,000 bodily injury liability per person
$60,000 bodily injury liability per accident
$10,000 property damage liability per accident
$25,000 uninsured/underinsured motorist coverage per person
$50,000 uninsured/underinsured motorist coverage per accident
$40,000 personal injury protection
Mississippi $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
Missouri $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
$25,000 uninsured motorist coverage per person
$50,000 uninsured motorist coverage per accident
Montana $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$20,000 property damage liability per accident
Nebraska $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
$25,000 uninsured/underinsured motorist coverage per person
$50,000 uninsured/underinsured motorist coverage per accident
Nevada $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$20,000 property damage liability per accident
New Hampshire (Minimum limits if driver purchases car insurance, which is optional.)
$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
$25,000 uninsured/underinsured motorist coverage per person
$50,000 uninsured/underinsured motorist coverage per accident
$25,000 uninsured/underinsured motorist property damage coverage
$1,000 medical payments coverage
New Jersey (Basic policy)
$5,000 property damage liability per accident
$15,000 personal injury protection
New Mexico $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$10,000 property damage liability per accident
New York $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$50,000 liability for death per person
$100,000 liability for death per accident
$10,000 property damage liability per accident
$25,000 uninsured motorist bodily injury coverage per person
$50,000 uninsured motorist bodily injury coverage per accident
$50,000 personal injury protection
North Carolina $30,000 bodily injury liability per person
$60,000 bodily injury liability per accident
$25,000 property damage liability per accident
$30,000 uninsured motorist coverage per person
$60,000 uninsured motorist coverage per accident
$25,000 uninsured motorist property damage coverage per accident
North Dakota $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
$25,000 uninsured/underinsured motorist coverage per person
$50,000 uninsured/underinsured motorist coverage per accident
$30,000 personal injury protection
Ohio $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
Oklahoma $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
Oregon $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$20,000 property damage liability per accident
$25,000 uninsured motorist coverage per person
$50,000 uninsured motorist coverage per accident
$15,000 personal injury protection
Pennsylvania $15,000 bodily injury liability per person
$30,000 bodily injury liability per accident
$5,000 property damage liability per accident
$5,000 medical benefits
Rhode Island $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
South Carolina $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
$25,000 uninsured motorist coverage per person
$50,000 uninsured motorist coverage per accident
$25,000 uninsured motorist property damage coverage
South Dakota $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
$25,000 uninsured/underinsured motorist coverage per person
$50,000 uninsured/underinsured motorist coverage per accident
Tennessee $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$15,000 property damage liability per accident
Texas $30,000 bodily injury liability per person
$60,000 bodily injury liability per accident
$25,000 property damage liability per accident
Utah $25,000 bodily injury liability per person
$65,000 bodily injury liability per accident
$15,000 property damage liability per accident
$3,000 personal injury protection
Vermont $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$10,000 property damage liability per accident
$50,000 uninsured/underinsured motorist coverage per person
$100,000 uninsured/underinsured motorist coverage per accident
$10,000 uninsured/underinsured motorist property damage coverage per accident
Virginia (Minimum limits if a driver purchases car insurance, which is optional. Drivers who don’t purchase insurance pay a $500 fee.)
$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$20,000 property damage liability per accident
$25,000 uninsured/underinsured motorist coverage per person
$50,000 uninsured/underinsured motorist coverage per accident
$20,000 uninsured/underinsured motorist property damage coverage per accident
Washington $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$10,000 property damage liability per accident
Washington, D.C. $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$10,000 property damage liability per accident
$25,000 uninsured motorist coverage per person
$50,000 uninsured motorist coverage per accident
$5,000 uninsured motorist property damage coverage per accident
West Virginia $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$25,000 property damage liability per accident
$25,000 uninsured motorist coverage per person
$50,000 uninsured motorist coverage per accident
$25,000 uninsured motorist property damage coverage
Wisconsin $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$10,000 property damage liability per accident
$25,000 uninsured motorist coverage per person
$50,000 uninsured motorist coverage per accident
Wyoming $25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$20,000 property damage liability per accident

INSURANCE AGENT EXPERTS

Wilson Mathew Nechikat

Wilson Mathew Nechikat

Principal

View Profile

Anthony Luu

Anthony Luu

Sr. Director of Insurance Operations

View Profile

Ezra Peterson

Ezra Peterson

Sr. Director of Insurance

View Profile

Danny Herrera

Danny Herrera

Head of Commercial Insurance

View Profile

Auto Insurance Data Methodology

The auto insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.

Quotes are typically based on a full coverage policy average unless otherwise noted within the content.

These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com

FAQ's

What does a liability car insurance policy cover?

Vehicle liability insurance aims to offset the cost of damage caused by a car accident. In individual states, if the driver is found to be at fault in the accident, his insurance provider shall cover the property and medical costs of the other parties involved in the accident to the limits set by the policy.

How much is basic liability car insurance?

The average liability car insurance cost would come to about $538.73 a year for liability insurance (including personal injury liability and property damage liability), $322.61 for accident coverage, and $148.04 for comprehensive coverage.

Does a liability car insurance policy cover my car if someone hits me?

Liability car insurance provides financial compensation to drivers who damage someone else or their property while driving a vehicle.

What is liability car insurance coverage?

Liability auto insurance is a form of car insurance policy that is mandated by law in most states. If you cause a car accident—in other words, if you are responsible for an accident—responsibility insurance helps cover the other person's expenses. Liability auto insurance comes in two forms: coverage of personal injury liability and coverage of property damage liability. Drivers in most countries must have all forms of coverage

What is liability only car insurance?

Liability-only car insurance applies to the purchase of only liability insurance, either for personal injuries or for property losses.

How much does liability car insurance cost?

The average liability car insurance cost would come to about $538.73 a year for liability insurance (including personal injury liability and property damage liability), $322.61 for accident coverage, and $148.04 for comprehensive coverage.

Does liability insurance cover rental cars?

If you have comprehensive and liability coverage for your vehicle, the coverage would typically apply to your rental car in the United States. If you rent a car in the U.S. of equivalent value to your personal vehicle, your car insurance policy is likely to be sufficient for the rental.

How much liability car insurance do I need?

How much liability insurance you need will depend on your net value. Start with the worst-case scenario and work backward.

Does liability insurance cover a totaled car?

Liability policy on its own does not shield your vehicle in any way, only injury and harm that you can cause to others.

Does personal liability insurance cover rental cars?

If you have comprehensive and liability coverage for your vehicle, the coverage would typically apply to your rental car in the United States. If you rent a car in the U.S. of equivalent value to your personal vehicle, your car insurance policy is likely to be sufficient for the rental.

Learn more by city and state for car insurance



Learn more by city and state for car insurance




Digital Insurance Card

Access your digital insurance card through the app. You no longer need to carry your physical insurance card with you.

Get reminders & quotes

Receive reminders before your renewal. Way.com will also send new quotes from up to 45 insurance companies with your renewal reminder.

Share with family

Keep everyone on your policy up to date by sharing your insurance information.

Manage your policy

Make changes to your policy right from the app (coming soon) and ask for expert advice.

Get the App:

Find the best Auto insurance rates on-the-go

For the best user experience, please download our Way app.

Please Enter A Valid Mobile Number!
Text Sent, Please download!

or

app store
google play