Liability car insurance is required to get behind the wheel in nearly every state and can protect you financially by paying for damages or hospital bills if you're found responsible for an accident.
But it doesn't cover everything.
Here's what you need to know about liability insurance, including what it covers, the top companies that offer it and the minimum coverage requirements in each state.
Liability car insurance
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What is liability car insurance
Liability insurance is the most basic form of auto coverage. If you cause an accident, it pays for the other driver's expenses, whether that's medical care or repairs to their car or. It doesn't pay for repairs to your own car, however — that requires comprehensive or collision coverage.
Every state but New Hampshire requires motorists to have liability insurance, which typically has two core components.
- Bodily injury liability: This covers other people's medical expenses or lost income stemming from an accident you caused. It can also help pay your legal fees if there is litigation. Bodily injury liability coverage typically has per-person limits and a total maximum per accident.
- Property damage liability: This covers damage done to another person's car, as well as personal property, like a mailbox or a porch.
Some states require drivers to have other kind of coverage, as well.
- Uninsured motorist (UM)/underinsured motorist (UIM)coverage Approximately 20 states require drivers to have UM/UIM coverage in case they're in a collision with someone who doesn't have enough coverage or any insurance at all. UM coverage can also be useful if you're involved in a hit-and-run accident.
- Personal injury protection (PIP): If you live in one of the 12 states with no-fault insurance laws, you're required to have PIP, which pays for medical expenses, lost wages and other costs for you or your passengers after an accident, regardless of fault.
- Medical payment (MedPay): In Maine, New Hampshire and Pennsylvania, drivers must have MedPay, which is similar to PIP but considerably more limited.
- Property Protection Insurance (PPI): Michigan requires drivers to have $1 million of PP! coverage to pay for damage to "tangible property" such parked cars, lawns and fences.
Best car insurance companies for liability coverage
We analyzed dozens of car insurance companies to find ones that stand out for liability insurance rates and coverage.
Best for discounts: Progressive
Progressive Auto Insurance
Cost
The best way to estimate your costs is to request a quote.
App available
Yes
Policy highlights
Progressive offers several lines of insurance to allow for bundling and convenient tools to help you keep your policy within your budget.
Terms apply.
Read our Progressive auto insurance review.
Pros
- Available in all 50 states
- Low rates for drivers with DUIs
- Non-owner car insurance and SR-22 certificates available
- Offers vanishing deductible as well as accident forgiveness
Cons
- Below-average customer satisfaction ratings from J.D. Power
- Above-average number of complaints
- Snapshot safe-driving discount program could result in rates going up
In addition to bundling discounts and rate drops for being a good student, Progressive offers reductions for switching to Progressive, for being a homeowner and for getting an online quote. If you pay your annual premium upfront, you could lower your rate up to 15%.
Best for bad credit: Travelers
Travelers Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Travelers auto insurance policies are affordable and backed by the sixth largest company for car insurance by market share according to the NAIC. The company also offers a number of discounts to customers, including discounts for bundling, owning a hybrid or electric car, and good student discounts.
Pros
- Sixth largest auto insurer in the U.S. by market share
- Many discounts available
- Low average prices compared to other companies we reviewed
Cons
- Not all discounts available in every state
- Not available in all states
- Below average J.D. Power customer satisfaction score
Travelers has the lowest rates for liability insurance of any company we've reviewed for drivers with bad credit. Drivers who download the IntelliDrive app and allow Travelers to monitor their driving can save up to 30% on their premiums.
Best for bad driving records: Auto-Owner
Auto-Owners Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Auto-Owners offers affordable premiums with high customer satisfaction ratings. There are 12 different types of discounts available, as well as various other types of insurance besides auto.
Terms apply.
Pros
- Offers at-fault accident forgiveness as an add-on
- High customer satisfaction scores from J.D. Power
- Low NAIC complaint index score
Cons
- Only available in 26 states
- Quotes must be obtained through an agent
- Claims must be filed through an agent
A good choice if you have at-fault accidents, speeding tickets or DUIs, Auto-Owners offers below-average rates for high-risk drivers and will issue SR-22 certificates.
Best for active military and veterans: USAA
USAA Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
USAA auto insurance is available to service members, veterans and their families in all 50 states and Washington D.C.. In addition to low rates, USAA offers discounts if you are deployed or store your vehicle on base.
Terms apply.
Read our USAA auto insurance review
Pros
- Cheapest insurer for liability-only coverage
- Stellar customer satisfaction scores
- Track record of financial strength
- Available in all 50 states
Cons
- Limited to military families and veterans
- No brick-and-mortar offices
- Customer service is not available 24/7
- Safe-driver discount not available in every state
USAA is available to current and former service members and their immediate families. If you park your vehicle on base, you can receive a discount of 15% off your premiums. If you're deployed or are otherwise not using your vehicle, you may be eligible for a 60% rate reduction.
Minimum car insurance requirements by state
Drivers in all states except New Hampshire are required to have liability car insurance, although each sets its own minimums: In New York, for example, the minimum is $25,000 in bodily injury liability coverage per person, $50,000 in bodily injury liability coverage per accident and $10,000 in property damage liability coverage per accident.
The amount for each is generally written with slashes, so, New York's requirements are expressed as "25/50/10."
State | Bodily injury/bodily injury per accident/property damage | UM/UIM, PIP or MedPay requirements |
---|---|---|
Alabama | 25/50/25 | N/A |
Alaska | 50/100/25 | N/A |
Arizona | 25/50/15 | N/A |
Arkansas | 25/50/25 | N/A |
California | 15/30/5 | N/A |
Colorado | 25/50/15 | N/A |
Connecticut | 25/50/25 | 25/50 UM/UIM |
Delaware | 25/50/10 | 15/30 PIP |
Florida | $10,000 property damage liability | $10,000 PIP |
Georgia | 25/50/25 | N/A |
Hawaii | 20/40/10 | $10,000 PIP |
Idaho | 25/50/15 | N/A |
Illinois | 25/50/20 | 25/50 UM |
Indiana | 25/50/25 | N/A |
Iowa | 20/40/15 | N/A |
Kansas | 25/50/25 | 25/50 UM/UIM, $4,500 PIP |
Kentucky | 25/50/25 | N/A |
Louisiana | 15/30/25 | N/A |
Maine | 50/100/25 | 50/100 UM/UIM, $2,000 MedPay |
Maryland | 30/60/15 | 30/60/15 UM |
Massachusetts | 20/40/5 | $8,000 PIP, 20/40 UM |
Michigan | 50/100/10 | $50,000 to unlimited PIP |
Minnesota | 30/60/10 | 25/50 UM/UIM, $40,000 PIP |
Mississippi | 25/50/25 | N/A |
Missouri | 25/50/25 | 25/50 UM/UIM |
Montana | 25/50/20 | N/A |
Nebraska | 25/50/25 | 25/50 UM/UIM |
Nevada | 25/50/20 | N/A |
New Hampshire | 25/50/25 | 25/50 UM, $1,000 MedPay |
New Jersey | 25/50/25 | 25/50 UM/UIM, $15,000 PIP |
New Mexico | 25/50/10 | N/A |
New York | 25/50/10 | 25/50 UM, $50,000 PIP |
North Carolina | 30/60/25 | 30/60/25 UM 30/60 UIM |
North Dakota | 25/50/25 | 25/50 UM/UIM, $30,000 PIP |
Ohio | 25/50/25 | N/A |
Oklahoma | 25/50/25 | N/A |
Oregon | 25/50/20 | 25/50 UM/UIM, $15,000 PIP |
Pennsylvania | 15/30/5 | $5,000 PIP |
Rhode Island | 25/50/25 | N/A |
South Carolina | 25/50/25 | 25/50/25 UM |
South Dakota | 25/50/25 | 25/50 UM/UIM |
Tennessee | 25/50/25 | N/A |
Texas | 30/60/25 | N/A |
Utah | 25/65/15 | $3,000 PIP |
Vermont | 25/50/10 | 50/100/10 UM |
Virginia | 30/60/20 | N/A |
Washington | 25/50/10 | N/A |
West Virginia | 25/50/25 | 25/50/25 UM |
Wisconsin | 25/50/10 | 25/50 UM |
Wyoming | 25/50/20 | N/A |
Washington, D.C. | 25/50/10 | 25/50/5 UM |
New Hampshire does not require drivers to have auto insurance but you must show proof of financial responsibility if you're held liable for injuries or damages and drivers who do buy insurance must meet minimum requirements for bodily injury and property damage liability.
Indiana requires uninsured/underinsured motorist coverage to be included in new policies but drivers may decline it in writing.
Michigan requires drivers to have $1 million in property protection insurance (PPI) and to choose from among six PIP options, ranging from $50,000 to unlimited coverage. Drivers can opt out of PIP if all household members have a qualifying health care plan or Medicare (Parts A and B).
Florida does not require bodily injury liability coverage for private passenger vehicles, only $10,000 in personal damage liability (PDL) coverage and $10,000 in personal injury protection (PIP).
Virginia is increasing requirements for bodily injury liability and personal damage liability to 50/100/25 on Jan. 1, 2025.
Do I need more than liability car insurance coverage?
Having more coverage than a liability policy may not be required by your state, it could help you pay to repair or replace your car or cover medical costs if you or your passenger are injured.
Here are four basic types of coverage you might want to consider:
- Collision coverage: Pays to repair or replace your vehicle if you are at fault for a collision.
- Comprehensive coverage: Pay for damages if your car is damaged by a falling tree, vandalism or other non-collision-related cause.
- Gap coverage: If you leased or financed your car, gap insurance can pay for the difference between the depreciated value of the car your insurer is willing to pay and the balance on your loan or lease.
- New car replacement: If your car is totaled or stolen, new car replacement insurance provides you with enough money for a brand-new replacement, not just the depreciated value of your vehicle. It's typically limited to the first year or two of ownership.
Pros and cons of liability-only car insurance
Pros
- It's much cheaper than full coverage. In February 2024, annual premiums for full coverage averaged $2,543, more than three times the $740 average for liability-only insurance.
- Full coverage may not be worth it. If your vehicle is worth less than 10 times what you would pay for collision and comprehensive each year, it might not make financial sense.
Cons
- Damage to your vehicle isn't covered. If you're at fault for a collision, the cost to repair or replace your car will come out of your pocket.
- Damage from weather or animal encounters is not covered. If your car is hit by a deer, hail or a falling tree, only comprehensive coverage would pay to repair or replace your car.
- Your medical expenses are not covered. If you are at fault for a crash, you'll have to pay for hospital bills or any other health-related costs for anyone in your vehicle.
FAQs
Is it a good idea to only have liability insurance?
Whether liability-only car insurance is a good idea depends on your situation. If your vehicle is worth less than 10 times what you would pay in an annual premium, it might not be worth paying for comprehensive and collision coverage. If you expect to get many more years out of your car, liability coverage may not be enough.
What company has the cheapest liability-only car insurance?
Rate vary depending on where you live, your driving history and other factors. Our analysis finds that Erie, State Farm, Progressive, Auto-Owners, Travelers and USAA have the cheapest liability insurance.
How much does liability-only car insurance cost?
The average cost of liability car insurance is around $740 a year, according to Bankrate's 2024 True Cost of Auto Insurance report.
Do I have to get full coverage car insurance?
While there is no legal obligation to have comprehensive and collision insurance, if you lease or finance your car you may be required to you by your lender or dealership. .
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every insurance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best insurance providers.
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