liability car insurance
What liability does auto insurance cover, and what is state-by-state pricing?
Learn what liability auto insurance covers and what happens if you don’t purchase at least the minimum amount required by the state.
If you cause harm to another person or damage their property in an accident, liability auto insurance will pay for it. It’s crucial because it guarantees victims compensation for their losses and shields them from monetary loss and legal repercussions.
A liability-only policy with 50/100/50 coverage costs $644 annually, whereas an annual liability policy with the state minimum insurance limit costs $574 annually.
According to most state legislation, drivers must have both bodily injury and property damage liability insurance to drive legally.
What is covered under bodily injury liability auto insurance?
The medical expenses of those you are judged responsible for injuring with your vehicle are covered by bodily injury liability auto insurance.
If you (the policyholder) or other drivers covered by your auto insurance policy are judged to be at fault for any injuries or fatalities following a motor vehicle collision, bodily Up to the limits of your insurance, injury responsibility (BI) pays. Although policy terms vary, bodily injury liability coverage usually covers the following, up to the limits of your policy:
- Medical costs
Funeral costs
Income loss
Suffering and agony
Legal defense if the car accident leads to a lawsuit
The coverages are as follows: the policy limitations for bodily injury liability are per person and accident. For instance, $25,000/$50,000 indicates that the maximum compensation for each individual involved in an accident is $25,000, and the maximum compensation for all individuals involved in the same accident is $50,000. Another way to write this coverage is 25/50.
Your injuries are not covered by bodily injury responsibility; only the harm you cause to others is. You would require coverages like medical payments coverage (MedPay) or personal injury protection (PIP) for your injuries to be compensated.
What is covered under property damage liability?
Liability for property damage Auto insurance covers replacing or repairing vehicles or other property you damage with your car.
Up to the limits of your policy, property damage liability (PD) covers damages to another person’s property that you, the policyholder, or other drivers covered by your auto insurance policy are held accountable for following a collision. In addition to damage to another vehicle, property damage liability includes harm to a person’s home, tree, fence, railing, pole, etc.
If someone sues you for property damage resulting from an automobile accident, property damage liability offers you a legal defense. Damages to your car are not covered by property damage liability.
You need comprehensive and collision coverage for this kind of coverage.
Is liability auto insurance required?
Yes, the minimum vehicle insurance coverages necessary for automobile owners in most states include property damage liability and bodily injury liability. State-specific rules for auto insurance vary in each state. You can increase your liability limitations, which is generally highly recommended.
Generally speaking, auto insurance providers mandate that you maintain the same liability coverage for every vehicle included in your policy. In certain states, all cars must have the same liability limits. Some insurance firms will do this even if the state does not.
Because they have no-fault legislation, certain states do not require bodily injury liability coverage. Drivers must carry personal injury insurance under no-fault laws to cover their own or their passengers’ injuries. You are responsible for paying for any injuries you cause once those restrictions are surpassed.
Most people purchase bodily injury liability insurance even in states with no-fault legislation.
A quick overview of liability coverage
Liability for bodily harm (up to your limits):
It covers other people’s medical expenses and lost income in the event that you do harm to them.
Liability for property damage (up to your limits):
It covers the cost of replacing or repairing any property you damage or destroy, including other vehicles.
You may also be required to compensate for pain and suffering if you are sued following an accident.
The following are not covered by liability:
- Your vehicle’s damage from an accident
- Your wounds
- Your vehicle may sustain damage from flooding, fire, hail, animal strikes, or vandalism.
- Theft
What is the price of liability auto insurance?
The cost of liability insurance is determined by the amount of coverage you receive, as well as other elements like your age, residence, driving history, and others. These figures are based on a rate analysis from CarInsurance.com, which gives you an idea of how much liability costs for the typical driver.
For instance, the average price of auto insurance for the three coverage levels is shown below:
A standard number is $25,000 for medical bills for injuries sustained in an accident you cause, up to $50,000 per accident, plus $25,000 for property damage you cause (25/50/25). State minimums vary by state, and many states have varying limitations.
The liability limits are $50,000 for injuries you cause in an accident, up to $100,000 per accident, and $50,000 for property damage (50/100/50).
Complete coverage with collision and comprehensive insurance, which includes coverage for damage to your vehicle, a $500 deductible, up to $300,000 in total for injuries you cause in an accident, and $100,000 for property damage (100/300/100).
| Rate | State Minimum | 50/100/50 | 100/300/100 |
|---|---|---|---|
| Average Rate | $574 | $644 | $1,758 |
| Monthly Average Rate | $48 | $54 | $147 |
States that have the lowest average cost for state minimum liability insurance are shown in the table below.
| State | Lowest average rate for the state minimum |
|---|---|
| South Dakota | $323 |
| Iowa | $326 |
| Wyoming | $328 |
| Maine | $355 |
| Idaho | $377 |
| Virginia | $380 |
| Nebraska | $393 |
| Vermont | $398 |
| Wisconsin | $401 |
| Ohio | $406 |
States that have the highest average cost for state minimum liability insurance are shown in the table below.
| State | Highest average rates for the state minimum |
|---|---|
| Michigan | $1,855 |
| Connecticut | $891 |
| New York | $867 |
| Maryland | $853 |
| New Jersey | $846 |
| Delaware | $843 |
| DC | $839 |
| Florida | $828 |
| Louisiana | $771 |
| Rhode Island | $738 |
Drivers in the following states pay the least for liability limits of 50/100/50.
| State | Lowest average rate for liability with limits of 50/100/50 |
|---|---|
| Iowa | $354 |
| Wyoming | $354 |
| Maine | $359 |
| South Dakota | $362 |
| Idaho | $415 |
| Alaska | $420 |
| Virginia | $424 |
| Nebraska | $426 |
| Ohio | $427 |
| Vermont | $434 |
Drivers in the following states pay the most for liability limits of 50/100/50.
| State | Highest average rate for liability with limits of 50/100/50 |
|---|---|
| Michigan | $1,919 |
| Florida | $1,100 |
| New Jersey | $1,025 |
| Connecticut | $972 |
| New York | $960 |
| Louisiana | $955 |
| DC | $949 |
| Nevada | $945 |
| Delaware | $943 |
| Rhode Island | $921 |
What is the required amount of liability auto insurance?
The legal minimum in many states is not enough to cover significant injuries or the cost of replacing a late-model vehicle. Just being able to drive lawfully is sufficient. If you don’t have any money or a house to protect you from litigation, only buy the bare minimum.
Insurance industry experts, including the Insurance Information Institute (III), advise drivers to carry bodily injury liability coverage of $300,000 per accident (100/300 coverage) and $100,000 per person. $100,000 is recommended for liability coverage for property damage. Higher limits are even better for safeguarding your possessions if you can afford them. Over these limits, liability insurance is typically quite affordable.
Suggested limits for auto liability insurance
Here are average auto insurance prices by state for the suggested liability limits of 100/300/100 to give you an idea of what to expect. These rates also include optional comprehensive and collision insurance, which are usually acquired in conjunction with these liability limits. To find your rate, type your state into the search bar. Nationwide, the average fee is $1,758.
| State | Average rate for full coverage |
|---|---|
| Michigan | $3,141 |
| Louisiana | $2,601 |
| Nevada | $2,402 |
| Kentucky | $2,368 |
| DC | $2,188 |
| Florida | $2,162 |
| California | $2,125 |
| New York | $2,062 |
| Rhode Island | $2,040 |
| Connecticut | $2,036 |
It’s inexpensive to increase your liability protection.
The foundation of any auto insurance policy is liability insurance, which is necessary to drive legally and cover other people’s losses and medical expenses in the event that you cause an accident. But in most cases, if you cause an accident, the state minimum is insufficient to save your resources and assets. If the expenses and repairs exceed your responsibility limit, you are liable for the difference.
The table below displays the average cost of liability insurance for drivers in each state and the additional costs associated with increasing coverage.
| State | Average rate state minimum | Average rate 50/100/50 | Difference | Difference |
|---|---|---|---|---|
| South Dakota | $323 | $362 | $39 | 12% |
| Iowa | $326 | $354 | $28 | 9% |
| Wyoming | $328 | $354 | $26 | 8% |
| Maine | $355 | $359 | $4 | 1% |
| Idaho | $377 | $415 | $38 | 10% |
| Virginia | $380 | $424 | $44 | 12% |
| Nebraska | $393 | $426 | $33 | 8% |
| Vermont | $398 | $434 | $36 | 9% |
| Wisconsin | $401 | $450 | $49 | 12% |
| Ohio | $406 | $427 | $21 | 5% |
FAQ: Auto liability insurance
What occurs if I don’t have auto insurance that covers liability?
If the state mandates liability insurance and you don’t have it, you may be subject to fines, license suspension, and/or vehicle registration penalties.
Additionally, you will be held personally liable for any harm or property damage you cause to other people in an automobile accident if your policy does not include bodily injury liability and property damage liability coverage. In order to pay for a judgment against you, you might have to sell off savings, property, and other assets.
You may still be financially at risk even if you have low-limit bodily injury liability insurance. You may be held liable for the excess if you cause a serious accident in which the cost of injuries exceeds your limitations.
Liability insurance for property damage is no different. In the event of an accident, you must accept financial responsibility in every state. You are individually responsible for the excess amount over what your insurance covers if your property damage liability coverage has low limitations.
Can liability auto insurance be used for your vehicle?
No. In the event that your car is totaled in an accident, you will never be able to use your liability policy to cover repairs or recover the actual cash value (ACV) of your vehicle. You cannot hold yourself liable for property damage to your belongings.
Liability coverage is typically included in auto insurance policies to shield household members against lawsuits filed by another person who is not a member of your home.
How does liability insurance work with collision insurance?
Both property damage liability and collision insurance pay for car damages from an auto accident, but they are claimed differently.
When someone sues you for an accident you caused, your liability coverages—bodily injury and property damage—protect you.
Regardless of who is at fault, your collision insurance protects your automobile for any damages it sustains when it collides with or is struck by another vehicle or object.
For whatever damage your automobile experiences, you can make a claim under your collision coverage. Even so, your liability insurance would pay for the claim made by the other driver in an accident you caused.
Collision also differs from property damage coverage because it comes with a deductible. A deductible is an amount you must pay out of pocket before your insurance benefits kick in.
Without requiring a deductible, your auto insurance provider will cover the other party’s repairs under your liability policy.
What is the typical amount of a liability claim for property damage?
The average amount paid for property damage liability claims increased by 3.2% year from $2,792 in 2010 to $3,593 in 2018. According to a November 2020 report with the most recent statistics, the Insurance Research Council (IRC) reported that the median payout in 2018 was $2,165.
During the three claim years examined (2010, 2014, and 2018), Rhode Island had the highest average property damage liability payout, at $3,669 per year. It was also the state with the biggest rise. Between 2010 and 2018, the state’s average payment changed by 6.3% annually.
The average PD liability payments in Arkansas ($3,618), Alaska ($3,581), and Louisiana ($3,546) were comparatively high. The District of Columbia ($2,371), Vermont ($2,518), and New Hampshire ($2,698) were among the states with the lowest average payments.
Materials & Approach
Techniques
CarInsurance.com hired Quadrant Information Services to provide typical vehicle insurance quotes for a 2016 Honda Accord for almost all US ZIP codes. Data from up to six significant carriers—Allstate, Farmers, GEICO, Nationwide, Progressive, and State Farm—were used to compute rates.
A policy limit of 100/300/100 ($100,000 for one-person injury liability, $300,000 for all injuries, and $100,000 for property damage in an accident) and a $500 deductible for collision and comprehensive coverage are the policy limits used to calculate averages for insurance for a single, 40-year-old driver.
This fictitious motorist has excellent credit and a spotless record. Uninsured motorist coverage is included in the rate. The aim of average rates is comparison. Your car and personal criteria will determine your rate.
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