Liability Auto Insurance (2024)
Liability auto insurance averages $45/mo, but rates vary by location, company, and driving profile. For example, since state minimum liability auto insurance requirements vary, Florida drivers' rates differ from Montana drivers. Read on to compare liability vs. full coverage auto insurance.
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Mathew B. Sims
Editor-in-Chief
Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.
Editor-in-Chief
UPDATED: Sep 17, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Sep 17, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Liability auto insurance costs $45 monthly on average, but minimum liability auto insurance requirements vary by state
- A liability insurance policy consists of bodily injury and property damage liability
- State Farm and Geico offer the cheapest liability-only car insurance coverage
All drivers must carry at least liability auto insurance to drive, and you can get a policy from the best auto insurance companies. If you cause an accident, liability car insurance pays for other parties’ damages and injuries. On average, liability auto insurance coverage costs $45 monthly.
However, minimum liability auto insurance requirements vary by state, so check your state’s laws to see how much coverage you need. Read on to learn more about the liability auto insurance definition, what liability insurance covers, and compare liability car insurance coverage options.
What Liability Auto Insurance Covers
What does liability auto insurance cover? A liability insurance policy protects you if you cause an accident that injures others or damages their property.
Liability insurance consists of two parts:
- Bodily injury liability: Bodily injury liability auto insurance pays for damages resulting from injuries to others if you cause an accident. Some common examples of injury damages include medical bills, lost wages, and funeral costs.
- Property damage liability coverage: Property damage liability coverage pays for vehicle and property damages if you cause an accident. Find the best property damage liability auto insurance companies here.
Liability insurance coverage usually covers you if you get sued after an accident for damages. However, liability coverage may not pay for an attorney or court fees if you failed to report the accident or if there were serious injuries.
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What Liability Car Insurance Doesn’t Cover
Liability insurance pays for others’ bills after an accident you cause, meaning there are several things it won’t cover regarding personal expenses. See what liability insurance won’t pay for below:
- Costs exceeding your policy limit: If paying for other parties’ injuries and property damages exceeds your policy limits, you’ll have to pay the rest out of pocket.
- Your property damages: Liability insurance won’t pay for damages to your vehicle or property in an accident you caused.
- Your medical bills. Liability insurance won’t pay for your medical bills in an accident you caused.
Since liability insurance only pays for other drivers’ damages and injuries, you may consider the following coverages to ensure you’re fully protected.
- Collision: Collision auto insurance pays for repairs to your vehicle if you hit another vehicle or object, such as a fence post.
- Comprehensive: Comprehensive auto insurance pays for repairs to your vehicle if you hit an animal or your car gets damaged by weather, falling objects, vandalism, or theft.
- Medical coverage: Personal injury protection and medical payments coverages pay for you and your passenger’s medical bills if you get in an accident, regardless of fault.
It’s generally best to carry a full coverage auto insurance policy, including liability, collision, and comprehensive coverages. A full coverage policy ensures you don’t incur expensive bills after an accident. So, it’s critical to understand the difference between liability car insurance vs. full coverage.
Minimum Liability Auto Insurance Requirements
In most states, you must carry the required liability insurance amounts for property damage and bodily injury liability. Determine your state’s liability requirements to know how much liability insurance you need. You can contact the Department of Motor Vehicles or speak to an insurance company in your area to learn the requirements.
Once you know the minimum amount, consider how much you can pay out of pocket if you cause an accident. While it may seem convenient that your state’s minimum requirements are low and you won’t have to pay much for coverage, it could backfire if you’re in an accident exceeding your policy’s limits.
For example, suppose your state only requires you to carry $5,000 in property damage liability. If you damage more than $5,000 worth of someone’s property, you must pay the rest out of pocket. If you can’t pay, you could get sued for the remainder.
So, we recommend you carry more than the state minimum liability unless you can pay high amounts out of pocket after an accident. However, there are ways to reduce auto insurance costs for expensive coverage, from shopping around to taking advantage of auto insurance discounts.
Some states allow you to post cash bonds or pay uninsured motorist fees if you opt out of a liability insurance policy. However, if you’re leasing a car in one of these states, you may still need to carry liability insurance if it’s in your contract.
However, most states require all drivers to carry liability insurance. Drivers who don’t carry liability insurance face fines, suspended licenses or registrations, and increased insurance rates.
Minimum Liability Auto Insurance Requirements by State
Minimum liability insurance amounts depend on your state. The table below lists the liability insurance requirements by state:
Minimum Liability Auto Insurance Requirements by State
State Coverages Limits
Alabama BI & PD Liab 25/50/25
Alaska BI & PD Liab 50/100/25
Arizona BI & PD Liab 15/30/10
Arkansas BI & PD Liab, PIP 25/50/25
California BI & PD Liab 15/30/5
Colorado BI & PD Liab 25/50/15
Connecticut BI & PD Liab, UM, UIM 25/50/20
Delaware BI & PD Liab, PIP 25/50/10
District of Columbia BI & PD Liab, UM 25/50/10
Florida PD Liab, PIP 10/20/10
Georgia BI & PD Liab 25/50/25
Hawaii BI & PD Liab, PIP 20/40/10
Idaho BI & PD Liab 25/50/15
Illinois BI & PD Liab, UM, UIM 25/50/20
Indiana BI & PD Liab 25/50/25
Iowa BI & PD Liab 20/40/15
Kanses BI & PD Liab, PIP 25/50/25
Kentucky BI & PD Liab, PIP, UM, UIM 25/50/25
Louisiana BI & PD Liab 15/30/25
Maine BI & PD Liab, UM, UIM, Medpay 50/100/25
Maryland BI & PD Liab, PIP, UM, UIM 30/60/15
Massachusetts BI & PD Liab, PIP 20/40/5
Michigan BI & PD Liab, PIP 20/40/10
Minnesota BI &PD Liab, PIP, UM, UIM 30/60/10
Mississippi BI & PD Liab 25/50/25
Missouri BI & PD Liab, UM 25/50/25
Montana BI & PD Liab 25/50/20
Nebraska BI & PD Liab, UM, UIM 25/50/25
Nevada BI & PD Liab 25/50/20
New Hampshire FR only 25/50/25
New Jersey BI & PD Liab, PIP, UM, UIM 15/30/5
New Mexico BI & PD Liab 25/50/10
New York BI & PD Liab, PIP, UM, UIM 25/50/10
North Carolina BI & PD Liab, UM, UIM 30/60/25
North Dakota BI & PD Liab, PIP, UM, UIM 25/50/25
Ohio BI & PD Liab 25/50/25
Oklahoma BI & PD Liab 25/50/25
Oregon BI & PD Liab, PIP, UM, UIM 25/50/20
Pennsylvania BI & PD Liab, PIP 15/30/5
Rhode Island BI & PD Liab 25/50/25
South Carolina BI & PD Liab, UM, UIM 25/50/25
South Dakota BI & PD Liab, UM, UIM 25/50/25
Tennessee BI & PD Liab 25/50/15
Texas BI & PD Liab, PIP 30/60/25
Utah BI & PD Liab, PIP 25/65/15
Vermont BI & PD Liab, UM, UIM 25/50/10
Virginia BI & PD Liab, UM, UIM 25/50/20
Washington BI & PD Liab 25/50/10
West Virginia BI & PD Liab, UM, UIM 25/50/25
Wisconsin BI & PD Liab, UM, Medpay 25/50/10
Wyoming BI & PD Liab 25/50/20
Some places with the highest state minimum auto insurance requirements include Alaska, Maine, and North Carolina.
Cost of Liability Auto Insurance
Liability insurance costs depend on your driving record, vehicle, insurance company, location, and more. The best way to find the cheapest rates is by shopping around and comparing auto insurance rates from different insurance companies in your area.
However, the average liability auto insurance rates from the top insurance companies can give you an idea of how much liability insurance might cost drivers:
However, remember that these rates are for drivers with clean records. A ticket, DUI, or at-fault accident will raise liability insurance rates significantly. Learn more about the best auto insurance companies for high-risk drivers.
Liability insurance is necessary, as you need it to drive legally in most states. If you cause an accident, liability insurance pays for the other parties’ medical and property damage bills. However, carrying enough liability coverage is important so you won’t exceed your limit after an accident and pay out of pocket.
If you want a higher liability coverage level for a reasonable price, the best option is to shop around and compare liability auto insurance quotes.
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Cheapest Liability Auto Insurance
Liability-only car insurance costs as low as $45 monthly, but your liability coverage won’t protect your car in an accident.
If you own and drive a car, you must buy car insurance. The required coverage amount varies by location, as each state has minimum car insurance coverage laws.
While you can purchase a full coverage policy with comprehensive and collision insurance, you can also buy a liability-only policy for much cheaper. A liability-only policy will meet your state’s coverage requirements and help you save money on coverage.
To find the cheapest liability car insurance in your area, compare liability car insurance quotes from multiple companies.
Difference Between Liability Auto Insurance vs. Full Coverage
You must purchase liability coverage meeting your state’s minimum coverage requirements. On average, liability auto insurance costs $45 monthly, whereas full coverage auto insurance is $119.
While full coverage can cost much more than minimum coverage, it’s important to consider the benefits of a full coverage policy before considering what insurance types to purchase.
Full coverage policies include collision and comprehensive insurance. Collision insurance covers damages to your vehicle associated with an accident, while comprehensive insurance covers things like vandalism, inclement weather damage, and other non-accident-related incidents.
If you drive a lot, drive in heavy traffic, or park your car on the street or outside a garage, a full coverage policy could help you spend less if your car gets damaged.
Choosing Between Liability-Only Auto Insurance and Full Coverage
The coverage types you should carry on your vehicle boils down to risk. If you own your vehicle and it’s older, you may want to consider a liability-only policy. However, a full coverage policy may be your best bet if you have a loan or lease on your vehicle or it’s fairly new.
When Liability-Only Auto Insurance Makes Sense
Consider a liability-only policy if you drive an older vehicle worth less than the cost of a full coverage policy plus your auto insurance deductible.
For example, if adding full coverage to your policy costs around $500 per year and your deductible is $1,000, you would pay $1,500 before insurance helps cover vehicle repairs. However, you’ll lose money if your car is worth less than $1,500.
When Liability-Only Auto Insurance Makes Sense
In most cases, anyone who owns a newer or more valuable car should carry full coverage. The protection that comes with full coverage offers peace of mind that you won’t pay thousands of dollars out of pocket if your car gets damaged.
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Add-on Auto Insurance Coverages
The only coverage you must carry is your state’s minimum requirement. However, some states require more than liability insurance. Some states also demand drivers carry:
- Personal injury protection: Personal injury protection (PIP) auto insurance helps cover expenses after an accident, including child care, lost wages, and medical bills.
- Medical payments (MedPay): MedPay covers your medical costs after an accident or collision but won’t cover lost wages
- Uninsured/underinsured motorist: This coverage helps if you get hit by someone who doesn’t carry insurance or carries inadequate coverage.
Required additional coverages depending on your location. You can research online or contact your local department of motor vehicles to learn more.
Factors Affecting Your Liability Auto Insurance Rates
First, consider some of the factors that will influence your own auto liability insurance rates:
- Insurance company: Insurers all have their own rate charts and underwriting guidelines. For example, liability coverage with Progressive auto insurance costs around $39 monthly, whereas Liberty Mutual averages $68.
- Vehicle make and model: Some cars may have a history of being involved in fewer accidents, have additional safety features, or be relatively cheap and easy to repair.
- Drivers on the policy: Auto insurance for teens and seniors is more expensive. So, expect higher liability auto insurance rates if you have any of these drivers on your policy.
- Available discounts: Insurers offer all sorts of auto insurance discounts to attract certain types of clients, including discounts for taking driving classes or setting up automatic payments.
- Credit score: Most insurance companies, such as Geico auto insurance, consider their client’s credit scores and only give the cheapest rates to people with good credit. Read more about the best auto insurance companies that use credit scores.
- ZIP code: Auto insurance rates by ZIP code vary. Insurers charge more for customers in some areas if they’re associated with high repair costs, lots of uninsured drivers, or frequent accidents.
How can knowing these things help you save money? Obviously, some of these factors are not that easy to control, or at least they aren’t very easy to control quickly.
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— AutoInsurance.org (@AutoInsurance) August 4, 2023
You might be unable to move to a cheaper town just to save money on your liability auto insurance. However, you might consider buying a cheaper vehicle to insure the next time you shop for a used or new vehicle.
How to Get Affordable Liability Auto Insurance Coverage
Note every step that you can take to save money has to take a long time. There are some things that you can easily do that might give you cheaper liability insurance by next month, including:
- Shop around. Compare liability auto insurance quotes from various insurers to find the most competitive company.
- Take a driving safety class. Many insurers offer a 5% to 10% discount for customers who take an approved class every few years.
- Increase your per-accident deductible. Raising your deductible means paying more out of pocket after an accident, but you could save on your monthly rates.
- Look for auto insurance discounts. Look for the combination of auto insurance discounts that benefits you the best.
- Buy a cheaper car. When you can buy a new or used vehicle, compare liability auto insurance quotes before you make your final purchase decision.
Getting affordable liability auto insurance quotes is easier than you think. Follow the steps above to find your state’s minimum liability auto insurance at an affordable rate.
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Finding the Right Liability Auto Insurance Coverage for You
If your car is paid off and older, a liability-only policy may work well for you. Shop online and compare quotes from multiple companies in your area to find the best liability insurance near you.
You may want to consider purchasing a full coverage policy if you’re leasing or financing a vehicle or if your vehicle is fairly valuable. While you’ll pay more for car insurance, this coverage type could help you save a lot of money if your vehicle gets damaged.
Frequently Asked Questions
What is liability insurance on a car?
Liability coverage pays for other parties’ property damage and injuries if you cause the accident. Almost every state requires drivers to carry liability insurance.
What happens if my car is totaled and I only have liability insurance?
You will be financially responsible for your totaled vehicle if you carry liability auto insurance only. You must have collision and comprehensive coverages to replace a totaled car, underscoring the difference between liability car insurance vs. full coverage.
Should drivers get liability-only insurance?
We don’t recommend getting liability-only car insurance unless you can pay for personal vehicle repairs out of pocket after an accident.
For example, people with older and cheaper vehicles may choose liability-only car insurance, as they wouldn’t suffer a huge financial loss if their car gets totaled or needs repairs.
What does liability insurance cover?
Liability-only auto insurance covers property damage and bodily injuries in an at-fault accident. It should also meet minimum liability auto insurance requirements in your state. However, a liability insurance policy doesn’t cover you or your vehicle.
What does liability insurance cover if you’re not at fault?
The other driver’s liability car insurance coverage should pay for your car damage and medical expenses if they caused the accident. However, you’ll need uninsured motorist coverage to pay if the other driver didn’t have adequate coverage.
What is supplemental liability insurance for rented cars?
When you rent a car, you must carry the state’s required minimum liability insurance on the vehicle.
Most rental car companies offer the option to add supplemental liability insurance to increase the liability limits beyond the minimum. You’ll have to pay an additional fee, but you’ll be better protected if you cause an accident in a rental car.
What are the minimum liability auto insurance requirements by state?
Minimum liability auto insurance requirements vary by state. You can check your state’s Department of Motor Vehicles or speak to an insurance company to determine the specific requirements.
How much does liability auto insurance cost?
Liability auto insurance costs around $45 monthly. However, various factors, including your driving record, vehicle, insurance company, and location, will affect your rates.
What is the difference between liability auto insurance and full coverage?
Liability auto insurance covers damages and injuries to others, while full coverage includes additional protection for your own vehicle. Full coverage typically includes collision and comprehensive insurance, which cover damages from accidents and non-accident-related incidents, respectively.
Understanding the difference between liability car insurance vs. full coverage is an important step in knowing what policies you need.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Mathew B. Sims
Editor-in-Chief
Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.
Editor-in-Chief
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.