Liability car insurance pays for damages and injuries to other motorists if you're held responsible for a collision.
It's required in nearly every state, but the amount of liability coverage you need varies from state to state.
With auto insurance rates continuing to rise, just getting a liability-only policy can be tempting — and cost a third of a full coverage policy — but it can leave you unprotected in a variety of scenarios.
Liability car insurance
Shop for car insurance
What does liability car insurance cover?
Liability insurance is the most basic auto coverage: If you're held responsible for a collision, it pays for the other driver's expenses, whether that's repairs to their car or medical bills.
It doesn't pay for repairs to your own car, however, and it won't help if your car is stolen. For that, you need to add comprehensive and collision coverage.
Every state but New Hampshire requires motorists to have liability insurance, which typically has two core components.
Property damage liability: This covers damage done to another person's car or personal property.
Bodily injury liability: This covers medical expenses or lost wages stemming from an accident you are held liable for. 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.
Some states require drivers to have other coverage, as well.
Uninsured motorist (UM)/underinsured motorist (UIM) coverage: Some states require drivers to have UM/UIM coverage in case they're in a collision with a driver with too little or no insurance. 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 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 PPI coverage to pay for damage to "tangible property," such as parked cars, lawns and fences.
How much is liability car insurance?
According to Bankrate's analysis of data from Quadrant Information Services, the average cost of liability-only insurance in 2025 is about $800. That's less than a third of the $2,685 average for full coverage.
However, those are just averages: The rates vary wildly from state to state, and your individual premiums depend on a host of factors, including your age, gender, marital status, driving record and credit score.
Where to get liability car insurance
We analyzed dozens of car insurance companies to find standouts for liability insurance.
- 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
- Below-average customer satisfaction ratings from J.D. Power
- Above-average number of complaints
- Snapshot safe-driving discount program could result in rate increase
Progressive has affordable rates for liability insurance, as well as discounts for being a homeowner, for bundling policies and up to 15% for paying your annual premium up front.
- Lower rates
- Discount for hybrids/EVs
- Not available in all states
- Some discounts not available in every state
- Below-average customer satisfaction scores
Most states allow insurers to consider your credit history when calculating premiums and Travelers has the lowest rates for liability insurance for drivers with bad credit.
- Accident forgiveness is an add-on
- High customer satisfaction scores from J.D. Power
- Covers modified cars and vehicles converted for the disabled
- Only available in 26 states
- Quotes must be obtained through an agent
- Claims must be filed with an agent
If you have at-fault accidents, speeding tickets or DUIs on your record, Auto-Owners offers below-average rates for high-risk drivers.
Minimum car insurance requirements by state
Every state except for New Hampshire requires drivers to have liability coverage, although each sets its own minimum coverage limits: 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.
These amounts are generally written with slashes, so, New York's requirements are expressed as "25/50/10."
Some states also require personal injury protection (PIP) and uninsured/underinsured motorist coverage.
| Bodily injury liability per person/per accident/property damage liability | Other coverage requirements | |
|---|---|---|
| Alabama | 25/50/25 | None |
| Alaska | 50/100/25 | None |
| Arizona | 25/50/15 | None |
| Arkansas | 25/50/25 | None |
| California | 30/60/15 | None |
| Colorado | 25/50/15 | None |
| Connecticut | 25/50/25 | UM/UIM: 25/50 |
| Delaware | 25/50/10 | PIP: 15/30 |
| Florida | $10,000 property damage | PIP: $10,000 |
| Georgia | 25/50/25 | None |
| Hawaii | 20/40/10 | PIP: $10,000 |
| Idaho | 25/50/15 | None |
| Illinois | 25/50/20 | UM/UIM: 25/50 |
| Indiana | 25/50/25 | None |
| Iowa | 20/40/15 | None |
| Kansas | 25/50/25 | PIP: $4,500; UM/UIM: 25/50 |
| Kentucky | 25/50/25 | PIP: $10,000 |
| Louisiana | 15/30/25 | None |
| Maine | 50/100/25 | UM/UIM: 50/100 MedPay: $2,000 |
| Maryland | 30/60/15 | UM: 30/60/15 |
| Massachusetts | 20/40/5 | UM: 20/40 PIP: $8,000 |
| Michigan | 50/100/10 | PIP: $50,000 and up |
| Minnesota | 30/60/10 | UM/UIM: 25/50 PIP: $40,000 |
| Mississippi | 25/50/25 | None |
| Missouri | 25/50/25 | UM/UIM: 25/50 |
| Montana | 25/50/20 | None |
| Nebraska | 25/50/25 | UM/UIM: 25/50 |
| Nevada | 25/50/20 | None |
| New Hampshire | 25/50/25** | UM: 25/50 MedPay: $1,000 |
| New Jersey | 35/70/25 | UM/UIM: 35/70 PIP: $15,000 |
| New Mexico | 25/50/10 | None |
| New York | 25/50/10 | UM/UIM: 25/50 PIP: $50,000 |
| North Carolina | 30/60/25 | UM/UIM: 50/100/50 |
| North Dakota | 25/50/25 | UM/UIM: 25/50 PIP: $30,000 |
| Ohio | 25/50/25 | None |
| Oklahoma | 25/50/25 | None |
| Oregon | 25/50/20 | UM/UIM: 25/50 PIP: $15,000 |
| Pennsylvania | 15/30/5 | PIP: $5,000 |
| Rhode Island | 25/50/25 | None |
| South Carolina | 25/50/25 | UM: 25/50/25 |
| South Dakota | 25/50/25 | UM/UIM: 25/50 |
| Tennessee | 25/50/25 | None |
| Texas | 30/60/25 | None |
| Utah | 30/65/25 | PIP: $3,000 |
| Vermont | 25/50/10 | UM: 50/100/10 |
| Virginia | 50/100/25 | None |
| Washington | 25/50/10 | None |
| Washington, D.C. | 25/50/10 | UM: 25/50/5 |
| West Virginia | 25/50/25 | UM: 25/50/25 |
| Wisconsin | 25/50/10 | UM: 25/50 |
| Wyoming | 25/50/20 | None |
Source: *Florida only requires $10,000 in property damage liability, ** New Hampshire only requires proof of financial responsibility, either with insurance, a bond or cash deposit
Can I drive with just liability coverage?
Having more than a liability policy isn't required by any state, but it will save you from paying out of pocket in a lot more situations.
Collision coverage pays to repair or replace your vehicle after a collision, regardless of who is at fault. And comprehensive coverage pays for losses caused by non-collision events, including theft, vandalism, fire, falling trees or animal encounters.
These two policies (combined with liability protection) are often referred to as full coverage car insurance.
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.
How much does liability-only car insurance cost?
In 2025, the average liability car insurance policy cost about $800 a year or $67 a month. Your rates may vary greatly, however, depending on your age, gender, credit score, driving history and other factors.
How much liability insurance do I need?
Each state sets its own minimum liability coverage limits. For example, Iowa requires $20,000 in bodily injury liability per person, $40,000 bodily injury liability per accident and $15,000 property damage liability per accident. On the other end of the spectrum, Florida only requires $10,000 in personal injury protection and $10,000 in property damage liability per accident.
Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.
Why trust CNBC Select?
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.
Catch up on CNBC Select's in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.
