By

Fausto Bucheli Jr

Updated

December 8, 2022

Edited By

John Davey
What Does Liability Car Insurance Cover?

What Is Liability Coverage And What Does Liability Car Insurance Cover?

Imagine that you are involved in a car crash that happens to be your fault.

Your passengers, as well as the other driver and his or her passengers, may be injured. You may have damaged the other driver’s car and maybe even other property, such as a lamp post.

In these instances, you will need liability car insurance and in this article, we will outline everything you need to know to protect yourself financially.

This will help you make more informed decisions when it comes to shopping around for minimum liability coverage and understanding the costs covered by this kind of insurance.

What Is Auto Liability Insurance?

The term liability insurance is used to describe insurance coverage that covers medical and legal fees if you are held responsible for someone else’s injury or damage to someone else’s property in an accident.

What Does Liability Insurance Include?

Liability insurance includes two types of insurance—property damage liability coverage and bodily injury liability coverage. This is what these two terms mean for you:

Bodily injury liability coverage

If you are responsible for a car accident, bodily injury liability insurance (BI) pays for the medical costs of the people that are injured (excluding yourself).

This coverage will also help cover payment for legal defense in the event that you are sued for any damages.

Property damage liability coverage

Property damage liability coverage (PD) helps to cover the cost of repairs if you are at fault in an accident that damages another vehicle.

It will also cover you if you damage property such as a fence or building.

This liability insurance coverage does not cover any damage to your own vehicle. For this, you may want to consider additional insurance coverage.

In Which States Is Liability Insurance Mandatory?

With the exception of Florida, every state requires bodily injury liability insurance. All 50 states plus Washington, D.C., require you to have property damage liability coverage.

What Liability Insurance Coverage Limits Can You Expect?

If you’re involved in an accident, the amount that your insurer will pay toward a liability insurance claim depends on the coverage limits that you choose when buying insurance.

Each state sets its own minimum coverage limits which are the absolute minimum coverages that you need to buy so that you may drive on the roads legally.

We have already defined liability insurance, but when you receive your car insurance policy, you will see three coverage limits listed.

These will be represented as follows:

Property damage liability limit

This is the maximum amount that your insurer will pay to repair damage you cause to someone else’s property. Property damage coverage ranges from $5,000 to $100,000.

Bodily injury liability limit per person

This is the maximum amount that your insurer will pay out for each person that is injured in an accident that you cause.

The most common minimum bodily liability limit is $25,000 per person, but your state may have a different minimum.

Bodily injury liability limit per accident

This is the total amount that your insurance company will pay out for all medical expenses for an accident that was your fault.

The coverage limit for two or more persons in any one accident is usually limited to anything from $100,000 to $300,000.

Most insurers will advise you what these minimum liability coverages should be according to the state that you live and drive in.

Each state has different minimum liability coverages. They are represented by a number sequence such as 25/50/10.

This translates to the minimum required coverage for that state in dollars.

For example, 25/50/10 would mean limits of $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $10,000 for property damage.

Additional coverages that not all states require, but which are mandatory in some, include:

Uninsured/underinsured motorist coverage

This liability insurance cover is required in almost half of U.S. states.

This insurance will help you to pay for injuries to you or your passengers if you are ever hit by a driver who does not have enough insurance coverage, or who has no insurance coverage.

Personal injury protection

Around 20% of U.S. states require personal injury protection.

This liability coverage will pay for medical expenses for you and your passengers in the event of an accident, regardless of who is at fault.

Personal injury protection may also cover lost wages and other benefits that medical insurance doesn’t.

Medical payments coverage

This auto liability coverage will go toward your medical expenses if you are injured in an accident.

Unlike personal injury protection, it doesn’t cover additional benefits such as lost wages.

Even though medical payments coverage has low limits, it can help you if you have high deductibles on your medical insurance.

Key Point: What Is A Deductible?

A deductible is the amount that you will need to pay out of pocket before your insurance provider will pay any expenses.

Minimum Liability Coverage Limits per State

You can check the minimum liability coverage limits for your state in the table below.

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

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

Massachusetts

$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

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

$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

$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

$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

The Exceptions to State Minimum Car Insurance Coverage

Not all states require you to carry liability insurance.

For example, New Hampshire will only mandate liability insurance for those who have been convicted of specific traffic violations such as drunken driving.

Other states provide the following alternatives:

Proof of financial responsibility

Some states, such as Arizona, will allow you to provide a bond, certificate of deposit, or cash to the Department of Motor Vehicles (DMV) to replace the minimum liability insurance required by the state.

The payment amount in this case varies from state to state and can be anything from $30,000 to $100,000.

Uninsured motorist registration

In states such as Virginia, residents with clean driving records have the option to register as uninsured motorists for an annual fee.

This does not replace car insurance, but does allow you to drive your vehicle without coverage.

Although this option costs much less than car insurance, it does leave you without any insurance coverage protection.

This could mean significant financial risk for you if you are involved in a car accident.

For example, you would need to pay for the damage to your car, that of the other driver, and any property that was damaged.

You may also have to cover the medical expenses of the other drivers and passengers involved—potentially equaling hundreds of thousands of dollars.

How Much Does Liability Insurance Cost?

The cost of liability insurance as part of your auto liability insurance policy depends on a few factors.

Coverage limits

Although your state has minimum liability insurance limits, you can still choose to increase these limits to provide yourself with additional financial protection.

Choosing a higher limit, however, will increase your monthly insurance premium.

Your state

Each state has different minimum liability insurance limits. This means that your monthly premiums will differ from state to state.

Your state will take various factors into account, such as:

  • Weather conditions.
  • Population.
  • Road conditions.
  • Driving statistics of the state.

These will be used to determine minimum liability limits.

Your driving history

If you have any tickets or traffic violations on your driving record, you could pay more for car insurance.

This is because insurance companies will see you as a higher risk to insure than someone who has a clean driving record.

Your age

Your age has a large role to play in how much you will pay for car insurance. If you are under 25, your car insurance will be more expensive.

Your car insurance will also go up from around the age of 60.

How Do You Find Cheap Liability Car Insurance Coverage?

You can reduce your car insurance rates by comparing auto insurance quotes, choosing a deductible that suits your pocket, and taking advantage of any discounts offered by your insurer.

Compare car liability insurance quotes

Different car insurance companies offer varying prices for the same liability coverage.

This is because car insurance companies all differ with regard to the weight they give factors such as the age of your car, your driving history, and so forth.

To get the best coverage at the best price, be sure to use a quote generator like ours to get insurance quotes from multiple insurers.

Simply head to the top of this page and enter your zip code to get dozens of insurance quotes tailored to your needs.

Be careful when it comes to your deductible

When you raise your car insurance deductible, you will lower your car insurance premium.

Be careful with this strategy, however, as you may not be able to afford the deductible when the time comes for you to claim.

Look at all available discounts

Insurers offer different discounts that are designed to attract and retain policyholders.

One of the most common discounts is on bundled insurance. You may be able to get a good insurance discount by bundling your home and car insurance.

You Can Get Cheaper Car Insurance Today with CheapInsurance.com

Minimum liability insurance is required in most states, and even if it isn’t required where you live, having good insurance will protect you financially in the event of an accident.

Finding a good insurer can be a time-consuming process. Fortunately, we are here to help you find the insurance coverage you need at the best price.

All you need to do is head to the top of this page and enter your zip code. You will find a wide selection of insurance quotes to choose from.

Once you have an idea of the auto insurance premiums that you could be paying, it will be time for you to contact the insurers that are offering you the cheapest rates to get a formal quote.

Getting car insurance should be quick, simple, and stress-free, and you deserve to get the best insurance rates possible.

At CheapInsurance.com, we’ve got you covered!