When you’re at fault in an accident, you are financially responsible for injuries and property damage. Because most people can’t afford to cover the cost of an accident out of pocket, drivers are required to carry liability car insurance coverage in almost every state.
Mandated auto liability coverage protects everyone on the road from the financial impact of a car accident. You want to know that if someone hits your car, you'll be compensated; the same goes for a driver you might hit. Although each state has a legal minimum, expert recommend higher liability limits.
There are only two states where car insurance isn't required by law, but you're still financially responsible for an at-fault accident, and liability insurance is the best way to do that.
Below, we’ll break down what liability insurance covers, how it works and why you need it.
- Auto liability insurance protects you financially if you are at fault in an accident that injures another driver or causes damage to their vehicle.
- Liability is required by law with a minimum amount of coverage in most states.
- Most state minimum limits are not enough to protect you in a moderate-to-serious accident, so you can buy higher levels of coverage.
- What is liability car insurance?
- How much is liability car insurance coverage?
- What does liability car insurance cover?
- What doesn’t liability auto insurance cover?
- Liability car insurance coverage limits
- What are the state minimum car insurance requirements?
- How much auto liability insurance do you need?
- Penalties for driving without liability insurance
- Shopping for liability car insurance
- Methodology
What is liability car insurance?
Liability insurance pays for injuries and damages to others if you are at fault in an accident.
Auto liability insurance coverage is divided into two types, bodily injury and property damage liability, with three different limits:
Bodily injury is paid on a per-person and per-incident basis, with two limits. The first limit is how much the insurance company will pay for any one person injured in an accident. The second limit is how much it will pay in total for everyone injured in an accident.
Property damage has only one limit, and it covers all vehicles and other property damage in an accident.
Limits are written as a set of numbers, for example, 100/300/100, where the coverage is:
- $100,000 for bodily injury per person
- $300,000 for bodily injury per incident
- $100,000 for property damage per incident
Drivers are required to buy a minimum amount of liability coverage, which differs from state to state, but is usually a low level of coverage.
How much is liability car insurance coverage?
The average rate for minimum auto liability insurance coverage is $511 a year, or $43 a month, on average, based on a 2022 Insurance.com data analysis. Bumping that up to liability limits of 50/100/50 costs $637 annually, or $53 a month.
If you buy a minimum liability policy, you'll get the cheapest insurance rate. However, minimum coverage levels are not recommended because they can leave you financially exposed in an at-fault accident. Increasing your limits above state minimums provides more protection and doesn’t cost much more.
Below, you’ll see the average rates for minimum car liability insurance and a higher level of coverage in your state, and the difference in cost.
| State | State minimum liability only | 50/100/50 liability only | $ Increase | % Increase |
|---|---|---|---|---|
| Alaska | $336 | $414 | $78 | 23% |
| Alabama | $420 | $585 | $165 | 39% |
| Arkansas | $422 | $510 | $88 | 21% |
| Arizona | $494 | $697 | $203 | 41% |
| California | $582 | $864 | $282 | 48% |
| Colorado | $467 | $726 | $259 | 55% |
| Connecticut | $773 | $849 | $76 | 10% |
| Washington D.C. | $577 | $663 | $86 | 15% |
| Delaware | $821 | $999 | $178 | 22% |
| Florida | $908 | $1,586 | $678 | 75% |
| Georgia | $567 | $736 | $169 | 30% |
| Hawaii | $389 | $519 | $130 | 33% |
| Iowa | $263 | $318 | $55 | 21% |
| Idaho | $326 | $386 | $60 | 18% |
| Illinois | $484 | $530 | $46 | 10% |
| Indiana | $384 | $442 | $58 | 15% |
| Kansas | $389 | $412 | $23 | 6% |
| Kentucky | $717 | $927 | $210 | 29% |
| Louisiana | $726 | $1,260 | $534 | 74% |
| Massachusetts | $523 | $660 | $137 | 26% |
| Maryland | $607 | $648 | $41 | 7% |
| Maine | $330 | $335 | $5 | 2% |
| Michigan | $711 | $755 | $44 | 6% |
| Minnesota | $479 | $511 | $32 | 7% |
| Missouri | $525 | $586 | $61 | 12% |
| Mississippi | $434 | $583 | $149 | 34% |
| Montana | $389 | $525 | $136 | 35% |
| North Carolina | $396 | $435 | $39 | 10% |
| North Dakota | $340 | $353 | $13 | 4% |
| Nebraska | $350 | $383 | $33 | 9% |
| New Hampshire | $411 | $441 | $30 | 7% |
| New Jersey | $989 | $1,120 | $131 | 13% |
| New Mexico | $376 | $546 | $170 | 45% |
| Nevada | $683 | $1,009 | $326 | 48% |
| New York | $875 | $960 | $85 | 10% |
| Ohio | $308 | $365 | $57 | 19% |
| Oklahoma | $352 | $545 | $193 | 55% |
| Oregon | $551 | $594 | $43 | 8% |
| Pennsylvania | $398 | $501 | $103 | 26% |
| Rhode Island | $648 | $782 | $134 | 21% |
| South Carolina | $628 | $793 | $165 | 26% |
| South Dakota | $267 | $289 | $22 | 8% |
| Tennessee | $368 | $445 | $77 | 21% |
| Texas | $520 | $659 | $139 | 27% |
| Utah | $526 | $645 | $119 | 23% |
| Virginia | $469 | $489 | $20 | 4% |
| Vermont | $306 | $334 | $28 | 9% |
| Washington | $505 | $664 | $159 | 31% |
| Wisconsin | $375 | $419 | $44 | 12% |
| West Virginia | $474 | $530 | $56 | 12% |
| Wyoming | $293 | $331 | $38 | 13% |
What does liability car insurance cover?
Auto liability insurance covers damage to vehicles and injuries of others that result from an accident you caused.
Bodily injury (BI) covers medical costs, funeral expenses, lost income and pain and suffering of people whom you injured.
Property damage (PD) reimburses accident victims for the repair or replacement of property you damaged. It covers both someone else’s car and their property; for instance, if you hit a sign or house.
Both types of liability insurance cover you only up to your limits, and that is why it’s important to make sure you buy enough coverage.
Liability insurance also obligates your insurer to defend you if you're sued following a motor vehicle accident.
What doesn’t liability auto insurance cover?
It’s important to remember that liability insurance only covers injuries and damages to other people.
- Liability insurance does not cover damage to your vehicle; you need collision and comprehensive coverage to pay for those damages.
- Liability insurance doesn’t pay for your own medical expenses. If you have personal injury protection (PIP) or MedPay, these coverages will pay your medical bills, in addition to your health insurance.
- Liability also does not cover claims that exceed the limits of your coverage. Higher liability limits can help you to avoid paying out-of-pocket when damages exceed minimum limits, and an umbrella policy can offer limits of $1 million or more once your auto insurance limits are reached.
Liability car insurance coverage limits
States set their own minimum liability coverage requirements for property damage and bodily injuries. These limits vary by state. For example, California's requirements are 15/30/5, some of the lowest limits of any state. Alaska, on the other hand, has some of the highest required limits at 50/100/25.
You can always choose to buy higher limits of coverage than the state-mandated limits, and it’s recommended that you do, especially when state limits are very low.
What are the state minimum car insurance requirements?
The list below shows the liability insurance minimums for every state. There are 12 no-fault states that require all drivers to carry personal injury protection (PIP) to pay for their medical expenses if involved in an accident. A few states, such as Maine and New Hampshire, require medical payments (MedPay), which provides some medical coverage if your or your passengers are injured in an auto accident.
Many states require you to carry uninsured motorist bodily injury (UM)/underinsured motorist (UIM) coverage. Some states require uninsured motorist property damage (UMPD).
Although there are two states that don't require drivers to carry auto insurance, all states do have financial responsibility laws. New Hampshire and Virginia don’t require car insurance, but it’s the easiest way to show financial responsibility.
| State | Minimum liability coverage limits | Other types of insurance required (if any) |
|---|---|---|
| Alabama | 25/50/25 | |
| Alaska | 50/100/25 | |
| Arizona | 25/50/15 | |
| Arkansas | 25/50/25 | |
| California | 15/30/5 | |
| Colorado | 25/50/15 | |
| Connecticut | 25/50/25 | UM/UIM |
| Delaware | 25/50/10 | PIP |
| District of Columbia | 25/50/10 | UM, UMPD |
| Florida* | 0/0/10 | PIP |
| Georgia | 25/50/25 | |
| Hawaii | 20/40/10 | PIP |
| Idaho | 20/50/15 | |
| Illinois | 25/50/20 | UM |
| Indiana | 25/50/25 | UM |
| Iowa | 20/40/15 | |
| Kansas | 25/50/25 | UM/UIM, PIP |
| Kentucky | 25/50/10 | PIP |
| Louisiana | 15/30/25 | |
| Maine | 50/100/25 | UM/UIM, MedPay |
| Maryland | 30/60/15 | UM/UIM, UMPD, PIP***** |
| Massachusetts | 20/40/5 | UM/UIM, PIP |
| Michigan | 50/100/10 | PIP, property protection |
| Minnesota | 30/60/10 | UM/UIM, PIP |
| Mississippi | 25/50/25 | |
| Missouri | 25/50/25 | UM |
| Montana | 25/50/20 | |
| Nebraska | 25/50/25 | UM/UIM |
| Nevada | 15/20/20 | |
| New Hampshire** | 25/50/25 | UM/UIM, MedPay |
| New Jersey****** | 25/50/25 | UM/UIM, UMPD, PIP |
| New Mexico | 25/50/10 | |
| New York | 25/50/10 | UM, PIP |
| North Carolina | 30/60/25 | UM, UMPD |
| North Dakota | 25/50/25 | UM/UIM, PIP |
| Ohio | 25/50/25 | |
| Oklahoma | 25/50/25 | |
| Oregon | 25/50/20 | UM, PIP |
| Pennsylvania | 15/30/5 | PIP - referred to as “First Party Benefits Coverage” |
| Rhode Island*** | 25/50/25 | |
| South Carolina | 25/50/25 | UM, UMPD |
| South Dakota | 25/50/25 | UM/UIM |
| Tennessee | 25/50/25 | |
| Texas | 30/60/25 | |
| Utah | 25/65/15 | PIP |
| Vermont | 25/50/10 | UM/UIM, UMPD |
| Virginia**** | 30/60/20* | UM/UIM, UMPD |
| Washington | 25/50/10 | |
| West Virginia | 25/50/25 | UM, UMPD |
| Wisconsin | 25/50/10 | UM, UIM |
| Wyoming | 25/50/20 |
* Florida doesn't require bodily injury liability coverage, but many insurers only offer policies with at least minimum amounts of 10/20 of BI coverage.
** In New Hampshire auto insurance isn't mandatory, but if you choose to buy insurance these are the minimum amounts.
*** Rhode Island doesn't require drivers to buy UM/UIM coverage if buying minimum liability coverage. If you buy higher liability limits, UM is required.
**** You can drive without insurance in Virginia but you have to pay an uninsured motorist fee of $500.
*****Full PIP can be waived in Maryland for a limited PIP option.
******New Jersey offers a basic car insurance policy with lower liability limits that the legal requirement.
How much auto liability insurance do you need?
Most experts agree that the legally-mandated minimum coverage is not enough for many drivers. The amount of car insurance coverage you should purchase depends on your assets and your tolerance for risk.
Use our auto insurance coverage calculator to find out what coverage limits best fit your needs.
If you cause an accident that seriously injures the other party, medical bills, income loss, and pain and suffering claims could come to hundreds of thousands of dollars. If you have assets above the limits of your policy, the victim's attorney or insurance company is likely to pursue them through subrogation. In addition, many insurance policies allow insurers to limit their legal defense expense to your coverage limit.
Penalties for driving without liability insurance
If you are caught driving without insurance, you may face:
- Driver's license suspension
- Registration suspension
- Fines ranging from $600 to $5,000
- DMV lapse fees
- Vehicle impoundment
- Jail time or community service
- Points on your license
- A requirement to carry SR-22 insurance
By driving without insurance, you're gambling with your future. In addition, you will be responsible for any financial damages if you cause an accident while uninsured.
Shopping for liability car insurance
You should review your policy once a year or so and make sure that your assets and income are fully protected. Even if you don't need to make changes, it’s a good idea to compare auto insurance quotes to make sure that you're getting a good deal. Make sure the quotes you receive all include the same coverage so that you can make a valid comparison.
When you have a life-changing event during the year – such as adding a teen driver, marriage, divorce, moving, adding or removing a vehicle – it’s particularly important to comparison shop.
Methodology
Insurance.com commissioned Quadrant Data Solutions in 2022 to field rates in every state for both a minimum coverage policy and for limits of 50/100/50. Rates are based on a 40-year-old male driver with a clean record driving a 2021 Honda Accord LX.
