Liability Car Insurance Coverage: How To Stay Protected?
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Liability car insurance pays for injuries and property damage you cause to other people in an accident where you are at fault. It includes bodily injury liability and property damage liability, and nearly every state requires drivers to carry it. It does not cover your own car or your own injuries. According to Insurify, liability-only coverage costs about $98 per month on average nationwide, while the lowest-cost insurers average roughly $44–$53 per month.
Liability car insurance is usually divided into a property liability portion and an injury portion. We’re going to look at them separately here.
Property damage liability car insurance (PD) covers the property that’s damaged as a result of your being at-fault in an accident. This includes other people’s cars, fences and prize rose gardens, but also, property that was in the vehicle that was damaged by you. For example, someone has a new set of china in their trunk and you rear-end them, causing the new tableware to shatter. Your property liability car insurance will cover the cost of replacement.
Bodily injury liability (BI) car insurance covers medical expenses, treatments, lost wages, and funeral arrangements that are a result of the accident caused by you.
Liability auto insurance will also cover the costs of lawsuits in the event you are sued following an accident.
Many state minimums are $25,000 for property damage, but with the average cost of a vehicle sitting around $38,000, that $25,000 dollar figure is already $13,000 too low if you total another’s vehicle. And medical bills can easily exceed the $50,000 to $60,000 required as a minimum in personal injury coverage as well.
You will see liability limits often expressed as 50/100 or 100/300, which would be $100,000 per incident and a maximum combined limit of $300,000 per incident in the later example.| Number | What It Means | Example Limit |
|---|---|---|
| First (25) | Bodily injury limit per person | $25,000 |
| Second (50) | Total bodily injury limit per accident | $50,000 |
| Third (25) | Property damage limit per accident | $25,000 |
Liability-only coverage is typically the least expensive way to meet your state’s insurance requirement, but your price depends on your driving record, age, credit (where allowed), location and insurer. The ranges below show the average monthly cost from the lowest-cost insurer up to the national average for each driver profile:
| Driver Profile | Average Monthly Liability-Only Cost (Lowest-Cost Insurer to National Average) |
|---|---|
| All drivers | $44 – $98 |
| Teen drivers | $58 – $184 |
| Senior drivers | $32 – $85 |
| Drivers with a speeding ticket | $63 – $127 |
| Drivers with an at-fault accident | $63 – $131 |
| Drivers with a DUI | $60 – $140 |
| Drivers with excellent credit | $41 – $86 |
In all states except New Hampshire, you are required to have liability car insurance if you own and operate a vehicle. It’s that simple. However, understanding how much liability car insurance you require and what, exactly, liability car insurance covers can be a bit more complicated.
We’re going to make things as straightforward as possible here and now, so you can get the best liability auto insurance for you, at the most affordable rate.
| Insurers | Average Monthly Liability-Only Rate Range |
|---|---|
| COUNTRY Financial, Auto-Owners, NJM | $44 – $48 |
| USAA, State Farm | $51 – $53 |
| Erie, Mile Auto, Progressive, GEICO, American Family | $67 – $82 |
Yes, in nearly every state. Each state sets its own minimum liability limits, and driving without required coverage can lead to fines, license suspension and personal financial responsibility for damages. New Hampshire is a notable exception for most drivers, but it still requires drivers to be able to pay for damages they cause. If you lease or finance your car, your lender will usually also require collision and comprehensive coverage.
In no-fault states, drivers generally must carry personal injury protection (PIP) in addition to liability coverage. PIP helps pay for your own and your passengers’ medical expenses regardless of who caused the accident, while liability still covers damage and injuries you cause to others. Check your state’s requirements before choosing a policy.
State minimums are often not enough to cover a serious accident. Many insurance professionals suggest limits of at least 100/300/100 – $100,000 per person, $300,000 per accident for bodily injury and $100,000 for property damage especially if you have savings, a home or other assets to protect. Drivers with significant assets may also consider an umbrella policy.
Perhaps the best answer to that is to answer this question: How much can you afford to pay out-of-pocket for damage and injuries to others?
Do you own a home? Are you willing to lose it to satisfy a judgment or risk wage garnishment? In considering these questions, you can also get a broader look at factors like risk exposure that you face in the event of an accident.
For instance, if you commute a long distance to work or drive your vehicle as part of your job, then you’re at greater risk of being involved in an accident. And, since no one is perfect, you have a greater risk of being at fault in an accident.
Many people can benefit from liability coverage, even if they don’t own a vehicle. You can still be held responsible for damages, after all.
In this case, the kind of liability car insurance you’d want would be called non-owner car insurance, and it is liability-only car insurance that comes in handy if you rent cars or borrow them from people who don’t live with you. If you reside in the same household, however, you should first consider being added to a family member’s policy. It’s easier and usually, much cheaper.
Liability car insurance is one of the most expensive kinds of car insurance and the cost depends on how much coverage you want, as well as where you live, the make of your car, your driving record, your credit history, and other variables.
So, it’s impossible to give you the exact cost of your liability insurance but we can speak in generalities. The average cost of life insurance is $1,134/year.
You can save money on your liability car insurance by bundling your home and auto insurance with any other policies you may have, and by maintaining a good driving record.
All auto insurance companies offer auto liability insurance coverage but not all companies will provide coverage for drivers who have poor driving records or a conviction for a DWI or DUI. You may even be denied if you have a bad credit rating.
But you can usually overcome these issues with some smart shopping. Start here, with us. We’ve curated a list of the top liability car insurance providers in the industry and we’ll match you with the best carrier for your needs and your budget.
Yes, you do, in most states. The exception is New Hampshire, where you don’t legally need this coverage but if you decide to forgo it, you have to be able to prove you can pay for at-fault damages out-of-pocket.
No, it only covers other people and their property in the event of an at-fault accident. However, your liability car insurance may also cover legal fees should you be sued.
Liability car insurance covers injuries and property damage you cause to others in an at-fault accident. It includes bodily injury liability and property damage liability.
No. Liability insurance does not pay for damage to your own car or your own injuries. You would need collision, comprehensive, MedPay or PIP for that.
According to Insurify, liability-only coverage costs about $98 per month on average nationwide, with the lowest-cost insurers averaging roughly $44–$53 per month. Your rate depends on your state, driving record and insurer.
It means $25,000 in bodily injury coverage per person, $50,000 in bodily injury coverage per accident and $25,000 in property damage coverage per accident.
Yes, in nearly every state. Each state sets its own minimum liability limits. New Hampshire is a notable exception for most drivers.
Liability covers damage you cause to others. Full coverage typically adds collision and comprehensive, which help pay for damage to your own car.
Many insurance professionals suggest at least 100/300/100 limits, which provide more protection than most state minimums, especially if you have assets to protect.
You may be personally responsible for paying the difference, which could put your savings or other assets at risk. Higher limits or an umbrella policy can help.
Lauren Lewthwaite Lauren Lewthwaite has been freelance writing for almost five years writing content that ranges from health to insurance and everything in between. Lauren is also a trained translator in French and English and is a dog-mom to an adorable Australian Shepherd.
