Liability Auto Insurance (2025 Guide)

Liability auto insurance includes bodily injury and property damage coverage for those you injure in an accident or claim.

This guide explores liability auto insurance essentials to ensure you meet state requirements.

Discover why liability policies are budget-friendly options for many drivers, with Geico offering the lowest rates at just $50 monthly. Learn the crucial differences between liability and full coverage, especially when animals or natural disasters damage your vehicle.

We’ll help you navigate provider options and state laws to ensure you’re properly protected while meeting legal requirements. Enter your ZIP code into our free quote tool to find the best liability auto insurance providers near you.

Liability Auto Insurance Explained

Liability auto insurance coverage explained is a policy that covers damages or injuries you cause to others in an accident.

Liability insurance helps pay for medical bills, property repairs, and legal fees if you’re at fault. It consists of two parts: bodily injury and property damage liability.

Property damage liability covers the damages you cause to others’ property, such as vehicle repairs.

Bodily injury liability, on the other hand, covers the cost of injuries you cause to others, such as medical bills and lost wages.

Auto insurance liability coverage is a smart choice for older cars or tight budgets, as it has the lowest car insurance costs.

Many drivers looking for the cheapest car insurance start with basic liability car insurance quotes to meet legal requirements while keeping premiums low.

State-Mandated Liability Limits & Cost

You will see three numbers for state-mandated liability insurance. For instance, liability 20/40/15 insurance means that drivers need $20,000 of bodily injury coverage for one person’s medical costs, $40,000 total bodily injury for an accident, and $15,000 for property damages.

You can choose to carry more than the state-mandated minimum if you want more protection. A policy for auto insurance of 50/100/50 in Ohio would be more than the state-mandated minimum of 25/50/25, for example.

Auto Insurance Requirements by State (+Min. Coverage Cost)

State laws significantly impact the type and amount of liability auto insurance coverage drivers must carry, as well as what additional coverages may be needed.

For example, liability auto insurance in Texas and liability auto insurance in Illinois require minimum bodily injury and property damage limits, but differ in required add-ons, like uninsured motorist protection.

The cost of minimum coverage in both states also differs, with Texas’s average rate starting at $77 per month and Illinois’s average rate starting at $57 per month.

Liability auto insurance in California is also mandatory, and it can be harder to find cheap car insurance in California, but the right provider can help you stay compliant without overpaying (Learn More: Best Auto Insurance Companies in California).

Liability Laws by State

Every state has different liability auto insurance laws that determine drivers’ financial responsibility in an accident. These differences often impact how easily claims are handled, especially in the worst states for filing an auto insurance claim.

In at-fault states, the driver who caused the at-fault accident is responsible for the other parties’ costs (Read More: At-Fault Accidents & Insurance Rates). At-fault liability states are the most common in the U.S.

In no-fault states, each driver’s liability insurance will pay for their own medical costs, regardless of who caused the accident.

Finally, there are a few choice liability insurance states. How does car insurance work in these states? In choice states, drivers can choose between no-fault and at-fault liability insurance policies.

Know Your Car Insurance Options

Understanding the differences between liability vs. full coverage auto insurance helps drivers choose the right protection.

It is also important to familiarize yourself with add-on options so you can choose a policy that best protects your assets.

With multiple add-on options, however, you may be wondering what coverages you should choose besides liability insurance to best protect yourself.

Some other auto insurance coverages commonly available from auto insurance providers include extras such as gap insurance or roadside assistance.

Types of Auto Insurance Coverage

Liability car insurance coverage is legally required and pays for others’ damages and medical costs if you’re at fault, but it doesn’t protect your own vehicle.

Liability-only insurance is often best for drivers with older cars or those seeking state-mandated coverage at a lower cost.

For drivers who want broader protection, a full coverage policy is often the best choice. What is full coverage car insurance? It includes liability, collision, and comprehensive coverage.

Collision insurance will cover your repair costs if you hit another car or a stationary object. Comprehensive insurance covers a wider range of accidents and damages, such as animal collisions, theft, and vandalism (Read More: Collision vs. Comprehensive Auto Insurance).

In serious accidents, especially those requiring traffic collision reconstruction, liability-only may fall short, but full coverage will protect drivers.

Knowing what each coverage includes ensures policyholders aren’t underinsured when it matters most. Always evaluate your needs and risks before committing to an auto insurance policy.

Find the Best Liability Auto Insurance

When comparing liability auto insurance rates, it’s clear that costs vary significantly by provider. How much does liability car insurance cost? Quotes for liability insurance can start as low as $50 per month on average, but may be as high as $100 per month.

The cost differences highlight the importance of shopping around for a competitive liability car insurance quote (Learn More: How to Get Multiple Auto Insurance Quotes).

Liability-Only vs. Full Coverage Auto Insurance Monthly Rates

The best liability and collision coverage providers like Geico, Progressive, and USAA offer an affordable insurance quote for liability coverage, making them strong contenders. However, remember to get multiple auto insurance quotes from different companies to ensure you get both value and adequate protection.

Drivers seeking budget-friendly coverage should compare liability auto insurance vs. full coverage, especially if they own an older vehicle. While full coverage auto insurance offers broader protection, liability-only plans are often the most cost-effective option for meeting legal requirements.

Save Money on Liability Car Insurance

Liability car insurance forms the foundation of financial protection for drivers. It is the most affordable type of auto insurance, especially with Geico liability coverage rates starting at $50 monthly.

Drivers looking to save on their liability-only car insurance cost should look into auto insurance discounts at their provider. Some common discounts that may reduce a driver’s liability car insurance cost include good driver discounts and bundling discounts.

Most Common Auto Insurance Discounts

Some of the hacks to save more money on car insurance are to compare liability car insurance quotes regularly, bundle policies, maintain good credit, and consider usage-based options.

Want to find the cheapest quote for liability car insurance today? Explore liability insurance quotes by entering your ZIP code into our free comparison tool today.