Liability Auto Insurance Coverage
Liability auto insurance coverage is essential insurance coverage that most U.S. states require, though coverage limits vary by state. On average, it costs about $46 monthly for liability auto insurance, so compare the best liability insurance quotes from various companies.
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Laura Berry
Former Insurance Agent
A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.
Former Insurance Agent
UPDATED: Mar 27, 2023
It’s all about veterans. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help veterans make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with one auto insurance company and cannot guarantee quotes from any single company. 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 veterans 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: Mar 27, 2023
It’s all about veterans. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help veterans make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with one auto insurance company and cannot guarantee quotes from any single company. 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.
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Liability auto insurance coverage is essential coverage if you drive in the United States. However, each state carries different standards for liability car insurance.
Specific factors determine your liability auto insurance rates, but you can find cheap liability auto insurance through various methods. Liability insurance is the main type of affordable auto insurance for military veterans and active military members. In addition, because of your military affiliation, you may qualify for discounts to help you save even more on coverage.
Once you determine whether liability insurance is enough coverage, you can shop online and compare car insurance quotes from several companies in your area. Doing so could help you save money on your monthly or annual car insurance rates.
What is liability car insurance?
Liability auto insurance coverage provides bodily injury and property damage coverage to another driver when you’re at fault in a vehicle accident. Anyone who drives in the United States, besides New Hampshire and Virginia, will require liability insurance. According to the New Hampshire Department of Motor Vehicles, no auto insurance requirements exist in the state. However, that doesn’t mean liability auto insurance isn’t in your best interest.
Your liability car insurance coverage depends on where you live and how much coverage you want. Some of the most common minimum coverage requirements include:
- Bodily injury liability: Bodily injury (BI) covers the other driver’s and passengers’ medical expenses. The purpose of BI is to provide compensation for injury to someone else when you’re at fault.
- Property damage liability: Property damage (PD) works like BI, but PD covers the other party’s property or vehicle. Your auto insurance company will verify if the other party’s car is repairable or a total loss.
- Uninsured/underinsured motorist coverage: Uninsured motorist (UM) coverage will compensate you when you’re in an accident with an at-fault driver who doesn’t have auto insurance. Your uninsured motorist coverage can even pay for injuries and damages from a hit-and-run driver.
- Medical payments (MedPay): MedPay insurance covers medical bills, such as X-rays and doctor’s visits, following a covered accident.
- Personal injury protection (PIP) insurance: Some states will require drivers to carry personal injury protection (PIP) as a minimum car insurance requirement. PIP is a no-fault coverage that helps with lost wages, child care expenses, and other personal deterrents due to an accident.
- Personal umbrella policy: If you have the highest coverage limits and still don’t have enough to pay for injuries or damages to another party, you may need a personal umbrella policy (PUP). PUP can save you from a massive lawsuit and ensure the other party can recover.
Some states only require bodily injury and property damage liability. Other states have additional requirements like PIP or uninsured/underinsured motorist coverage. Check with your state’s department of motor vehicles to learn more about the types and amounts of liability insurance you need for your vehicle.
Depending on your unique situation and needs, you may be looking for additional liability coverage for your business. If so, the following liability coverages may be helpful:
- Business liability insurance: Business liability insurance, also known as general liability insurance and professional liability insurance, is a commercial liability policy that pays for errors and other issues the company is liable for, such as an at-fault driver or faulty repairs.
- Product liability insurance: Business product liability insurance covers any product that causes injury or damage. Product liability can prevent a company from going through unnecessary court costs and saves a company from negative press.
In the same way you need liability protection for your vehicle, you need liability coverage as a business owner. If you own a business, consider the types and amounts of liability coverage you need to ensure you’re covered if anything happens.
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What are minimum liability auto insurance coverage requirements?
Aim for auto insurance’s bare minimum requirements if you want cheap auto insurance for veterans. Liability car insurance quotes are usually less expensive when you ask for liability-only insurance with the lowest coverage level.
Each state has individual requirements concerning the minimum liability car insurance coverage amounts for a liability-only or minimum coverage policy. Where you live will directly impact the types of car insurance you need.
State Minimum Auto Insurance Requirements| State | Insurance Required | Limits |
|---|---|---|
| Alabama | BI & PD liability | 25/50/25 |
| Alaska | BI & PD liability | 50/100/25 |
| Arizona | BI & PD liability | 25/50/15 |
| Arkansas | BI & PD liability, PIP | 25/50/25 |
| California | BI & PD liability | 15/30/5 |
| Colorado | BI & PD liability | 25/50/15 |
| Connecticut | BI & PD liability, UM, UIM | 25/50/25 |
| Delaware | BI & PD liability, PIP | 25/50/10 |
| D.C. | BI & PD liability, UM | 25/50/10 |
| Florida | PD liability, PIP | 10/20/10 |
| Georgia | BI & PD liability | 25/50/25 |
| Hawaii | BI & PD liability, PIP | 20/40/10 |
| Idaho | BI & PD liability | 25/50/15 |
| Illinois | BI & PD liability, UM, UIM | 25/50/20 |
| Indiana | BI & PD liability | 25/50/25 |
| Iowa | BI & PD liability | 20/40/15 |
| Kansas | BI & PD liability, PIP | 25/50/25 |
| Kentucky | BI & PD liability, PIP, UM, UIM | 25/50/25 |
| Louisiana | BI & PD liability | 15/30/25 |
| Maine | BI & PD liability, UM, UIM, Medpay | 50/100/25 |
| Maryland | BI & PD liability, PIP, UM, UIM | 30/60/15 |
| Massachusetts | BI & PD liability, PIP | 20/40/5 |
| Michigan | BI & PD liability, PIP | 20/40/10 |
| Minnesota | BI & PD liability, PIP, UM, UIM | 30/60/10 |
| Mississippi | BI & PD liability | 25/50/25 |
| Missouri | BI & PD liability, UM | 25/50/25 |
| Montana | BI & PD liability | 25/50/20 |
| Nebraska | BI & PD liability, UM, UIM | 25/50/25 |
| Nevada | BI & PD liability | 25/50/20 |
| New Hampshire | FR only | 25/50/25 |
| New Jersey | BI & PD liability, PIP, UM, UIM | 15/30/5 |
| New Mexico | BI & PD liability | 25/50/10 |
| New York | BI & PD liability, PIP, UM, UIM | 25/50/10 |
| North Carolina | BI & PD liability, UM, UIM | 30/60/25 |
| North Dakota | BI & PD liability, PIP, UM, UIM | 25/50/25 |
| Ohio | BI & PD liability | 25/50/25 |
| Oklahoma | BI & PD liability | 25/50/25 |
| Oregon | BI & PD liability, PIP, UM, UIM | 25/50/20 |
| Pennsylvania | BI & PD liability, PIP | 15/30/5 |
| Rhode Island | BI & PD liability | 25/50/25 |
| South Carolina | BI & PD liability, UM | 25/50/25 |
| South Dakota | BI & PD liability, UM, UIM | 25/50/25 |
| Tennessee | BI & PD liability | 25/50/15 |
| Texas | BI & PD liability, PIP | 30/60/25 |
| Utah | BI & PD liability, PIP | 25/65/15 |
| Vermont | BI & PD liability, UM, UIM | 25/50/10 |
| Virginia | BI & PD liability, UM, UIM | 25/50/20 |
| Washington | BI & PD liability | 25/50/10 |
| West Virginia | BI & PD liability, UM, UIM | 25/50/25 |
| Wisconsin | BI & PD liability, UM, Medpay | 25/50/10 |
| Wyoming | BI & PD liability | 25/50/20 |
The minimum requirements vary significantly. Still, most states require bodily injury and property damage coverage, but what does each BI/PD limit mean?
The numbers within the coverage limit stand for bodily injury and property damage. For example, a state with BI/PD limits of 25/50/25 requires that each driver carry $25,000 for bodily injury of one person per accident, $50,000 for bodily injury of multiple people per accident, and $25,000 for property damage per accident.
Some states carry MedPay as a requirement, too. MedPay is an auto insurance coverage that helps cover medical bills, such as X-rays and doctor’s visits.
How does liability insurance work?
Liability coverage is all about protecting you from the financial responsibility associated with an accident. If you cause an accident, your liability coverage pays for repairs to other people’s vehicles or for medical bills rather than you paying for these things out of pocket.
Liability insurance protects you financially, but you may also receive legal protection when necessary. For example, if you cause a major accident and several injuries, your liability coverage with your insurance company may provide legal assistance.
While liability can be helpful, it certainly isn’t all-encompassing. Liability insurance doesn’t cover anything for your vehicle. If someone else causes an accident, that person’s policy covers your vehicle. However, if you cause an accident or your car gets damaged, you’re financially responsible for all repairs.
Most people purchase additional coverage, such as a full coverage auto insurance policy with collision and comprehensive insurance, to help with the things liability doesn’t cover.
What are the benefits of a liability insurance policy?
Most importantly, liability is a requirement. The main benefit in this respect is that you won’t get in trouble for not carrying proper insurance if you’re ever in an accident.
Still, there are other benefits to a liability-only car insurance policy. Liability insurance is extremely helpful in terms of financial responsibility. Without liability coverage, you’d pay for repairs to other people’s vehicles and medical bills associated with an accident if the accident was your fault. With liability insurance, your insurance company pays for those things.
Liability insurance also provides legal representation if anything ever turns into a lawsuit. Legal representation is the only way to feel safe and have an advocate helping you provide correct information and prove your case.
Lastly, liability insurance is incredibly important for peace of mind on the road. When you have liability coverage, you don’t have to worry about the stresses of driving without your state’s proper car insurance coverage. Of course, you always hope nothing happens, but it’s good to know you have insurance that will help if you are in an accident.
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How much is liability auto insurance coverage?
Your liability car insurance costs will depend on several different factors. For example, liability car insurance for teens is often more expensive than liability coverage for adults in their mid-40s.
Insurers consider various factors when setting liability car insurance rates, including:
- Age
- Gender
- ZIP code
- Vehicle
- Coverage level
- Commute mileage
- Credit score
- Driving record
- Chosen insurance company
An auto insurance company will ask for personal information to get an accurate quote to narrow your liability auto insurance rates effectively. Still, your state’s average liability insurance cost could help you understand what to expect when looking for a policy.
| States | Average Monthly Liability Rates | Average Monthly Collision Rates | Average Monthly Comprehensive Rates | Average Monthly Full Coverage Rates |
|---|---|---|---|---|
| Alabama | $34.75 | $26.92 | $13.17 | $74.83 |
| Alaska | $47.25 | $30.08 | $11.67 | $89.08 |
| Arizona | $45.25 | $23.42 | $15.75 | $84.42 |
| Arkansas | $34.33 | $27.33 | $16.42 | $78.08 |
| California | $42.00 | $33.50 | $8.25 | $83.67 |
| Colorado | $45.17 | $24.08 | $15.42 | $84.75 |
| Connecticut | $57.08 | $31.17 | $11.00 | $99.25 |
| Delaware | $67.33 | $26.58 | $10.17 | $104.00 |
| District of Columbia | $55.25 | $39.25 | $19.25 | $113.67 |
| Florida | $73.75 | $24.00 | $9.92 | $107.75 |
| Georgia | $50.00 | $28.00 | $13.00 | $91.00 |
| Hawaii | $39.00 | $26.00 | $9.00 | $73.00 |
| Idaho | $31.00 | $19.00 | $10.00 | $59.00 |
| Illinois | $38.00 | $26.00 | $11.00 | $75.00 |
| Indiana | $33.00 | $21.00 | $10.00 | $64.00 |
| Iowa | $26.00 | $19.00 | $16.00 | $60.00 |
| Kansas | $30.00 | $22.00 | $20.00 | $73.00 |
| Kentucky | $45.00 | $23.00 | $12.00 | $80.00 |
| Louisiana | $68.00 | $35.00 | $18.00 | $121.00 |
| Maine | $29.00 | $22.00 | $8.00 | $60.00 |
| Maryland | $53.00 | $30.00 | $13.00 | $95.00 |
| Massachusetts | $51.00 | $33.00 | $11.00 | $95.00 |
| Michigan | $68.00 | $35.00 | $13.00 | $116.00 |
| Minnesota | $38.00 | $20.00 | $15.00 | $73.00 |
| Mississippi | $39.00 | $27.00 | $18.00 | $84.00 |
| Missouri | $36.00 | $23.00 | $15.00 | $75.00 |
| Montana | $33.00 | $22.00 | $19.00 | $74.00 |
| Nebraska | $31.00 | $20.00 | $19.00 | $71.00 |
| Nevada | $60.00 | $26.00 | $10.00 | $95.00 |
| New Hampshire | $34.00 | $25.00 | $9.00 | $68.00 |
| New Jersey | $75.00 | $32.00 | $11.00 | $117.00 |
| New Mexico | $43.00 | $23.00 | $15.00 | $80.00 |
| New York | $69.00 | $33.00 | $14.00 | $115.00 |
| North Carolina | $30.00 | $25.00 | $11.00 | $65.00 |
| North Dakota | $25.00 | $21.00 | $20.00 | $65.00 |
| Ohio | $34.00 | $23.00 | $10.00 | $67.00 |
| Oklahoma | $39.00 | $27.00 | $19.00 | $85.00 |
| Oregon | $51.00 | $19.00 | $8.00 | $78.00 |
| Pennsylvania | $42.00 | $28.00 | $12.00 | $82.00 |
| Rhode Island | $66.00 | $35.00 | $11.00 | $111.00 |
| South Carolina | $46.00 | $22.00 | $15.00 | $84.00 |
| South Dakota | $26.00 | $18.00 | $22.00 | $65.00 |
| Tennessee | $36.00 | $26.00 | $12.00 | $74.00 |
| Texas | $46.00 | $32.00 | $17.00 | $95.00 |
| Utah | $43.00 | $22.00 | $9.00 | $74.00 |
| Vermont | $30.00 | $25.00 | $11.00 | $66.00 |
| Virginia | $36.00 | $24.00 | $12.00 | $72.00 |
| Washington | $51.00 | $22.00 | $9.00 | $82.00 |
| West Virginia | $42.00 | $28.00 | $17.00 | $87.00 |
| Wisconsin | $32.00 | $19.00 | $12.00 | $62.00 |
| Wyoming | $28.00 | $23.00 | $21.00 | $73.00 |
One of the best ways to get affordable car insurance rates is to shop online and compare quotes from several companies simultaneously. When you compare quotes, you learn which companies offer the coverage you’re looking for at a price that works with your budget.
Comparing rates for a minimum coverage policy will allow you to pay the least for your state’s required coverage levels.
Do I need more than just liability insurance?
In addition to liability insurance, many drivers choose a full coverage policy, which includes collision and comprehensive coverage. With full coverage auto insurance coverage, your vehicle has protection on the road or when it’s parked, and full coverage helps with repairs to your vehicle even if you caused the accident.
A full coverage policy includes the following insurance types:
- Collision insurance: Collision auto insurance helps if you cause an accident and damage your car. Collision insurance will pay for repairs up to your vehicle’s actual cash value (ACV) once you pay your auto insurance deductible.
- Comprehensive insurance: Comprehensive auto insurance helps if inclement weather, wild animals, theft, or vandalism cause damage to your car.
If your vehicle is fairly new or has a loan or lease on the car, you’ll need a full coverage policy. Your contract likely requires that you carry full coverage on your car if you’re financing it. On the other hand, you may not need full coverage if you drive an older vehicle with a relatively low actual cash value, as the coverage may not be worth the investment.
How can I choose the right liability auto insurance coverage?
To find the right coverage, you must assess your needs before making any decisions. For example, do you need full coverage on a new vehicle? Do you need your state’s minimum coverage on an older car? Should you consider any add-on coverages, like new car replacement or emergency roadside assistance?
Once you’ve determined what you need, you can shop online and compare quotes for car insurance from several companies. Comparing quotes is a great way to find the coverage you want at a price that works for you. Once you do, you can apply for coverage and see if the company offers discounts to help make your coverage even more affordable.
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Liability Auto Insurance: The Bottom Line
As you search for the right liability insurance, you must know your state’s minimum coverage requirements. Remember to carry at least the limits your state requires, if not higher, for added protection.
Liability helps if you cause an accident, allowing you to avoid paying for medical bills or vehicle repairs out of pocket. Still, liability coverage will not help if your vehicle is damaged and needs repairs. So, many drivers carry a full coverage policy on their vehicles.
Once you know what coverage you want, you can shop online and compare quotes. Doing so will help you learn which company offers the coverage you’re looking for at a price that works with your budget.
Frequently Asked Questions
What is the difference between full coverage vs. liability insurance?
Liability helps with costs when you’re responsible for an accident. It typically covers medical bills and car repairs for other people’s vehicles if you cause an accident. Full coverage pays for damage to your vehicle if you cause an accident and also pays for repairs if someone or something damages your car while it’s parked.
How much liability car insurance do I need?
Aside from New Hampshire and Virginia, each state requires bodily injury and property damage liability insurance. The limits of your coverage depend on your state’s coverage requirements.
Is liability insurance the same as auto insurance?
Liability insurance is a type of auto insurance, but there are other types drivers may be interested in purchasing in addition to liability coverage.
Compare quotes from the top auto insurance companies and save!
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Laura Berry
Former Insurance Agent
A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.
Former Insurance Agent
Editorial Guidelines: We are a free online resource for veterans 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.