Compare Liability Car Insurance: Rates, Discounts, & Requirements [2023]
Liability insurance protects you if you cause an accident by paying for the injured parties’ medical bills and property damage bills up to the policy’s limits.
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Joel Ohman
Founder & CFP®
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...
Founder & CFP®
UPDATED: Nov 23, 2022
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car 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 top car companies please enter your ZIP code above 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: Nov 23, 2022
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car 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 top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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driving without insurance face fines, a suspended license, and more. Rates for liability insurance vary from state to state and from driver to driver, so it’s important to do your research and use car insurance comparison charts to find rates that are affordable for you. Continue reading to learn more about this essential coverage, from what liability insurance covers to the cost of liability insurance. What does liability insurance cover? Vehicle liability insurance consists of two parts: bodily injury liability insurance and property damage liability insurance. Depending on your state, one or both of these liability insurance coverages may be required. What is liability insurance for bodily injuries? Bodily injury liability insurance coverage pays the medical bills if you cause an accident that injures other people. Typically, bodily injury liability insurance will cover the following: If someone needs more extensive therapy to recover or can’t work after the accident, bodily injury liability insurance will help pay the bills up to the policy’s limit. Property damage liability insurance works the same as bodily injury liability insurance, but instead of paying for medical bills, it pays for property damage bills. So if you are responsible for an accident that damages another’s vehicle or property, such as crashing into their fence, property damage liability insurance will pay the bills up to the policy limits. In general, liability insurance for both coverages may also help pay for some of your legal fees if you are sued after an accident you caused. However, you will need higher liability limits for there to be any money left to apply toward legal fees if you cause a major accident. Enter your ZIP code below to view companies that have cheap car insurance rates. There are a number of things that liability insurance doesn’t cover. Liability insurance coverage is intended simply to pay for other parties’ accident costs if you are responsible for a car accident. So there are a number of areas where you are left unprotected. Liability insurance won’t pay for the following: Carrying just car liability insurance can be a huge financial risk unless your vehicle isn’t worth much and you wouldn’t suffer financially if it were totaled. You also should consider carrying higher limits of liability insurance than what is required by your state, as you will be responsible for any expenses that exceed your insurance’s limits. Because liability insurance doesn’t offer complete financial protection to drivers, some of the other auto insurance coverages that drivers should consider carrying include: MedPay and PIP are both required insurance coverages in some states, so you may already have to carry one of these two personal medical coverages in addition to your liability insurance. Collision and comprehensive insurance are not required in any states, but if you have a lease or loan on your vehicle, your lender will likely require you to carry these two coverages. Even if not required, we recommend carrying collision and comprehensive insurance on your vehicle. Otherwise, in any accident you cause, you will have to pay for any repairs yourself. If you are unable to pay for a new car or expensive repairs out of pocket, it is well worth it to pay extra each month for collision and comprehensive auto insurance. Yes, if drivers live in the U.S., they will need whatever car liability coverage their state requires. The minimum car insurance required by each state is different, but most require liability. A few states allow drivers to opt out of carrying liability car insurance, but these drivers need to provide proof that they would be financially capable of paying for other drivers’ medical bills and property damage bills. If you have a lease or loan on your vehicle, however, your lender will likely require you to carry the state’s minimum liability insurance instead of opting out of coverage. Below, you can see a full list of the auto liability coverages and amounts that each state requires. Most states don’t require a high amount of liability insurance, which is why it’s usually beneficial to purchase a higher limit of liability insurance than what is required. Drivers must carry the minimum amount of liability insurance coverage required by their state. You can check the amount required in your state by checking the list in the previous section, looking online at the Department of Motor Vehicles (DMV), or asking your insurance company. However, bear in mind that the amount you need for liability insurance is not the same as the amount you are required to carry. Oftentimes, the liability amounts are so low that they will only cover minor damage and repairs. If you cause a significant amount of damage, you will still be financially responsible for a large sum if your low amount of liability insurance runs out. For example, if your state only requires you to carry $5,000 of property damage liability insurance, you will be under-protected. If you cause an accident that totals someone’s car worth $20,000, you will have to pay the remaining $15,000 yourself. If you are unable to pay the remaining amount, the other driver may sue you for the remaining funds. Therefore, you should consider how much you can pay out of pocket after an accident. If you only could afford to pay $5,000 out of pocket, for example, you should choose a higher liability limit. The average cost of minimum liability car insurance is $44 per month or $528 per year. However, the actual rate you will pay depends upon what state you live in, your vehicle, your driving record, and more. For example, if you need car insurance after a DUI, your average rate will be almost triple the national average. Finding the cheapest liability insurance will require shopping around and comparing quotes. Because rates vary so much among different drivers, the only way to know who the cheapest car insurance companies are for you is to compare rates based on your own driving record. In addition to getting quotes, you can use the following tips to try and save on the cost of a liability insurance policy. Because liability insurance is a requirement, you are stuck paying for it no matter what. However, following the above tips can help you reduce your liability auto insurance rates so that you can afford to purchase more coverage if desired. Enter your ZIP code below to view companies that have cheap car insurance rates. Almost every driver in the U.S. will have to purchase a liability insurance policy. Not carrying a state’s required liability insurance will result in fines, loss of driving privileges, and other penalties. However, the cost of this necessary insurance coverage can be reduced. What is liability insurance coverage? Liability auto insurance consists of bodily injury liability insurance and property damage liability insurance. If you cause an accident that injures another driver, bodily injury liability insurance will cover that driver’s medical bills up to the policy limit. Likewise, if you cause an accident that damages another person’s property, property damage liability insurance will cover the other party’s damages up to the policy limit. Should drivers get liability-only car insurance? The only drivers who should consider getting liability-only car insurance are drivers with older cars that are no longer worth much. Basically, if you can afford the financial loss of your vehicle without too much worry, you could carry liability-only auto insurance. What is supplemental liability insurance for a car rental? All cars will have basic liability insurance on them when you rent a car, but if you want additional liability insurance with higher limits, you can purchase supplemental liability insurance for your car rental. Enter your ZIP code below to view companies that have cheap car insurance rates. Joel Ohman Founder & CFP® Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida.
Jo... Founder & CFP® 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.
What Liability Insurance Covers
Bodily Injury Liability Insurance
Property Damage Liability Insurance
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What Liability Insurance Doesn’t Cover
What other coverages should I carry?
Do drivers need liability insurance?
State Minimum Liability Requirements
Alabama 25/50/25
Alaska 50/100/25
Arizona 15/30/10
Arkansas 25/50/25
California 15/30/5
Colorado 25/50/15
Connecticut 25/50/20
Deleware 25/50/10
District of Columbia 25/50/10
Florida 10/20/10
Georgia 25/50/25
Hawaii 20/40/10
Idaho 25/50/15
Illinois 25/50/20
Indiana 25/50/25
Iowa 20/40/15
Kansas 25/50/25
Kentucky 25/50/25
Lousiana 15/30/25
Maine 50/100/25
Maryland 30/60/15
Massachusetts 20/40/5
Michigan 20/40/10
Minnesota 30/60/10
Mississippi 25/50/25
Missouri 25/50/25
Montana 25/50/20
Nebraska 25/50/25
Nevada 25/50/20
New Hampshire 25/50/25
New Jersey 15/30/5
New Mexico 25/50/10
New York 25/50/10
North Carolina 30/60/25
North Dakota 25/50/25
Ohio 25/50/25
Oklahoma 25/50/25
Oregon 25/50/20
Pennsylvania 15/30/5
Rhode Island 25/50/25
South Carolina 25/50/25
South Dakota 25/50/25
Tennessee 25/50/15
Texas 30/60/25
Utah 25/65/15
Vermont 25/50/10
Virginia 25/50/20
Washington 25/50/10
West Virginia 25/50/25
Wisconsin 25/50/10
Wyoming 25/50/20
How much liability insurance do drivers need?
The Cost of Liability Insurance
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The Final Word on Liability Car Insurance
One of the best ways to save on liability auto insurance is to shop around online for quotes from different auto insurance companies. To start comparing auto insurance rates today, use our free quote comparison tool. It will help you find the best auto insurance rates available in your area.Frequently Asked Questions
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Enter your ZIP code below to view companies that have cheap car insurance rates.
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