What is Liability Car Insurance?

Only two states — New Hampshire and Virginia — allow you to forgo buying car insurance, provided you can prove you have enough money to pay in the event of an auto accident. Virginia also charges uninsured drivers a $500 Uninsured Motor Vehicle fee, so most drivers in the commonwealth opt to buy auto insurance. If you live anywhere else, state law will require you to buy liability insurance coverage that meets or exceeds the state's minimum requirements. 

Also known as standard insurance, liability insurance pays for costs related to the bodily injury and property damage of the other driver after an accident you caused. 

Liability insurance is an excellent option for affordable coverage, but it’s important to know how far that coverage will extend while also considering what’s best for your personal situation. Many drivers feel the need to purchase additional comprehensive or collision coverage for a greater level of financial protection. 

How does liability car insurance work?

Liability car insurance covers damage to the other person’s vehicle along with their medical costs if you cause an accident. You can’t use liability coverage to fix your own vehicle or pay your medical bills, but it reduces the burden of having to pay out of pocket for someone else’s accident-related expenses. 

Without liability car insurance, you would be entirely responsible for paying the other driver's costs should they sue you and win damages. Also, you’d face penalties such as fines or a suspended license if you live in a state that requires liability insurance. These states provide minimum coverage limits, but you can purchase additional coverage. 

When you file a claim, your insurance company will pay up to your coverage limit.

What does liability car insurance cover?

Liability insurance primarily covers costs for bodily injury and property damage, including the following expenses for the other driver in an accident you caused: 

• Emergency room visit after the accident

• CT scan and other medical tests

• Extended hospital stay

• Physical therapy

• Vehicle and auto-body repairs

• Vehicle replacement (if the car is totaled)

• Damage to other property, such as a fence or phone pole 

Most states use an at-fault judgment, which means if there’s an accident, both drivers’ insurance companies will determine who was responsible. Then, the at-fault driver needs to file a claim for insurance to cover the other person’s expenses from the damage.

In no-fault states, expenses are covered by each driver’s policy through personal injury protection (PIP) coverage.

What doesn’t liability car insurance cover?

Whether you’re at fault or not, liability insurance doesn’t cover damage to your vehicle or your medical expenses due to an accident. Comprehensive and collision insurance extend coverage to your own vehicle and medical expenses.

Ideally, when both drivers have liability coverage, their insurance will cover the other driver’s vehicle and medical expenses depending on who’s at fault. So if you’re not at fault and someone rear-ends you, for example, their insurance would cover you. 

However, if the damage exceeds the coverage limit or you have additional expenses, like needing a rental car to get around while your vehicle is being fixed, liability coverage may not provide adequate coverage. 

Likewise, if you hit an object such as a fence or mailbox, and damage your car, liability insurance won’t apply since you’d be at fault. Plus, there’s no other driver with insurance to cover your expenses.  

You'll need to buy collision insurance to cover these types of damage.

Types of liability auto insurance

Different types of liability insurance affect what your insurer will cover. Minimum requirements for liability insurance vary by state, so the following options may not be required in your state. 

• 

  Bodily injury

  If the other driver faces injuries from an accident that you cause, your liability insurance will cover things like their emergency room visit, CT scan, or an extended hospital stay. It also covers lost wages and legal fees if the other driver decides to sue you for their injuries and the impact it left on them. 

  If your policy includes your family members, bodily injury liability coverage also applies to any damage they may cause to someone else while driving your vehicle.

  This coverage operates with per-person and per-accident limits. This means, if multiple people in the other car (or even a pedestrian involved in the accident) need medical care, your bodily injury liability insurance can cover costs for each person up to your coverage limit. The per-accident limit applies to how much your insurer will cover overall in an accident.

• 

  Property damage

  This type of liability coverage pays for damages to the other driver's vehicle from an accident you caused. If you hit a fence or a city utility pole, your property damage coverage can also pay the property owner for those damages.

• 

  Personal injury protection (PIP)

  Personal injury protection, or PIP, coverage covers medical expenses regardless of fault. No-fault states require PIP coverage, so both drivers must contact and file a claim with their insurance companies regardless of who caused the accident. 

  In the 1970s, some states proposed legislation to introduce no-fault insurance to reduce claim delays and the number of cases that went to court. Types of coverage and limits vary, but in most states, PIP covers medical fees, lost wages, and ongoing care for accident-related injuries. Some PIP policies also cover the cost of hiring a person to perform the essential services that someone injured in an accident cannot perform. 

• 

  Medical payments (MedPay)

  Medical insurance coverage, or Med Pay, is an auto insurance add-on that covers medical expenses for you and your passengers, even if you’re at fault. Specifically, this insurance covers costs for hospital visits and stays, doctor’s visits, health insurance deductibles, surgeries, and funeral expenses.

  Some states that don’t offer Med Pay coverage require PIP instead, so depending on where you live, you’ll have one or the other. Compared to PIP coverage, Med Pay tends to be optional when offered and fails to cover lost wages and more. People might purchase this coverage to extend protection to their vehicle and medical expenses beyond basic liability coverage.

• 

  Uninsured/underinsured motorist

  Uninsured or underinsured motorist insurance protects drivers involved in a hit-and-run or an accident with an uninsured or underinsured driver. Unfortunately, 12.6% of drivers still decide not to purchase auto insurance even though it’s required, according to the Insurance Research Council. Or, they may not have enough coverage to pay for the damage they caused. Many states combine uninsured and underinsured motorist insurance into one policy. Some require insurers to include the coverage in every policy they sell, but allow drivers to decline the coverage, typically in writing.

  Uninsured motorist insurance covers medical bills for both you and your passengers and damages to your vehicle. Some states may not cover damage due to a hit-and-run, so you’ll need to check with your insurer and consider purchasing collision coverage.

State requirements for liability insurance

Depending on where you live, your minimum liability limits will vary because states set their own requirements for registered drivers. Find the minimum insurance requirements, as listed by the Insurance Information Institute, for your state in the table below. The split limit for Alabama, for example, is 20/50/25. The first number represents bodily injury per person, the second represents bodily injury per accident, and the final number represents property damage per accident. 

Average cost of liability insurance by state

Insurance costs can vary significantly based on location, and the amounts and types of insurance a state requires drivers to carry. Here's a look at the average cost of liability insurance in each state, based on Insurify data.

The below rates are estimated rates current as of: Thursday, November 30 at 11:00 AM PST. 

Data reviewed by Konstantin Halachev

Konstantin HalachevVice President of Engineering

• 7+ years experience in data analysis

• Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

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State	Average Monthly Quote: Liability Coverage
North Carolina	54
New Hampshire	54
Wisconsin	61
South Dakota	62
Wyoming	62
Hawaii	63
Iowa	63
Alabama	66
Vermont	66
Ohio	68
Indiana	69
New Mexico	69
Idaho	69
Mississippi	71
West Virginia	74
Illinois	77
Tennessee	77
Kansas	77
Colorado	83
Maine	85
Nebraska	85
North Dakota	88
Pennsylvania	89
Oklahoma	90
Missouri	91
Massachusetts	93
Arkansas	93
Montana	94
Arizona	95
Utah	96
California	96
Virginia	96
Washington	98
Oregon	99
Minnesota	102
United States	103
New Jersey	106
Texas	119
Washington D.C.	130
Delaware	130
Rhode Island	132
Georgia	143
Louisiana	157
New York	157
Maryland	161
Kentucky	163
South Carolina	167
Nevada	181
Connecticut	187
Michigan	192
Florida	216

Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Additional auto insurance coverage

Liability coverage provides the minimum car insurance required, but other options with more coverage exist. Though liability coverage presents the cheapest option and protects you from paying out of pocket for the other driver’s medical and vehicle expenses, it offers little to no protection for your own medical costs and vehicle repairs. 

Additional auto insurance coverage or a more comprehensive policy helps you avoid costly medical bills and medical collections, along with some money to repair or replace your car sooner. Find information about three other types of car insurance coverage options to consider below: 

• Collision: Collision insurance covers repairs to your car as a result of an accident with another vehicle or if your car hits an object such as a light pole or mailbox. Additionally, it covers damage to your car from potholes and rollover accidents. Insurers sell collision coverage with a separate deductible and will reimburse you regardless of fault. 

• Comprehensive: Comprehensive coverage reimburses you for damage to your car caused by something other than a collision or loss due to theft. Insurers require drivers who finance their cars to have comprehensive coverage. It covers damages due to contact with an animal (such as accidentally hitting a deer on the road), fallen objects, broken windshields, weather hazards, and riots or vandalism.

• Full coverage: Full coverage usually means you have comprehensive and collision insurance, along with anything else your state requires. Since most states require liability, full coverage indicates you have all three. When you finance a car, your lender usually requires you to have full-coverage car insurance.