What is Liability Car Insurance?
You need this coverage to get behind the wheel in just about every state.
Liability car insurance is designed to cover the costs of damages where you’re responsible, fully or partly, for a car accident. It ensures that other drivers, pedestrians, and their property are protected financially. That’s why it’s considered the minimum car insurance coverage that’s required in almost every state.
Let’s dig into how liability car insurance coverage works, and how it can help put your mind at ease when you get behind the wheel.
What is liability insurance coverage?
Liability insurance helps pay for damages or injuries you might accidentally cause to someone else or their property. This way, you’re not stuck with all the expenses yourself.
And it’s not just something for car accidents. Lots of insurance policies include some kind of liability coverage. For example, if a friend slips and falls on your icy driveway and gets injured, your homeowners personal liability insurance would help cover their related medical expenses for eligible claims.
What does liability car insurance cover?
In general, liability car insurance refers to the car insurance coverage that addresses what happens after a car accident when you’re at fault-or even partially at fault, in some states. It covers and protects other drivers and pedestrians, which is why most states have set minimum coverage limits.
In the context of car insurance, there are two main types of liability insurance:
- Bodily injury liability: Covers medical expenses, lost wages, and legal fees if you injure someone in a car accident
- Property damage liability: Pays for repairs to someone else’s vehicle or property damage caused by your car in an accident
Is liability car insurance mandatory in all states?
Liability car insurance is mandatory in almost every US state. Each state sets minimum required limits for both bodily injury liability and property damage liability coverage. These requirements ensure that drivers have at least basic financial protection in case they cause an accident.
However, there are a few exceptions-like New Hampshire and Virginia, but even in these states, drivers must either prove they can pay for damages in case of an accident or opt to pay a fee for driving uninsured.
It’s important to check the specific requirements of your state and consider that even the minimum required coverage might not be enough to fully protect you financially in case of an accident.
How much liability coverage do I need?
Most states have passed insurance requirements with minimum limits-including both per person and per incident-for bodily injury liability coverage. Here’s how each works:
- Per person injury limit: Maximum amount that will be paid to any one injured person in the accident
- Per accident injury limit: Maximum amount that will be paid to all injured persons in the accident
Some insurance companies will include a third limit that’s a per accident limit for property damage liability claims. This is the maximum amount that the insurer will pay for damage to other cars or property resulting from the accident.
Minimum limits range from $10,000 to $50,000. But you’ll want to select enough coverage-perhaps more than the bare minimum required-so that you’ll feel fully protected in case of a crash.
When you get an insurance quote and pick the amount of coverage you need, your insurance company will probably have a default suggestion to help you end up with the right amount.
Keep in mind: If an accident costs more than your insurance covers, you’ll have to pay the extra amount yourself. Make sure to select liability coverage limits that you’d feel comfortable paying the difference, with insurance premiums that fit your budget.
How much does liability car insurance typically cost?
The national average car insurance cost for bare bones liability car insurance coverage in 2026 is $76 per month, according to Value Penguin.
The cost of this type of coverage depends on the bodily injury liability and property damage liability limits you pick, the type of car you drive, and other factors-like your driving record. When getting an insurance quote, ask your insurance company to show you several options and how they impact your policy price.
What does liability insurance not cover?
Liability coverage will not cover damage to your own car or property in the event of a car accident, nor will it cover your own medical bills from a crash. Those are covered under different coverage options, such as collision coverage and comprehensive coverage, and medical payments coverage or personal injury protection.
You can find out more about the various types of required and optional car insurance coverages here.
Reddit asked, we answered
How much liability car insurance should I have?
Carry enough liability to protect your assets, often much more than state minimums. If you have $100k in assets, consider $100k+ in coverage. Many experts recommend $100k/$300k/$100k or higher. Umbrella policies can add millions in protection for relatively little cost. The right amount depends on your financial situation and what you’d need to protect if you were found liable for a serious accident. Read the full thread on Reddit
What's the cheapest liability-only car insurance?
Liability-only policies can run $30-80 monthly depending on your state’s requirements and your driving record. However, minimum coverage is often inadequate if you cause serious damage. Shop around. Rates vary significantly between insurers for identical coverage. At Lemonade, we offer competitive liability-only rates with transparent pricing and no hidden fees, plus clear explanations of what you’re getting. Read the full thread on Reddit
How important is property damage liability car insurance coverage?
Property damage liability is legally required in most states, and it’s one of the more important coverages to get right. It covers damage you cause to other people’s property. Think other cars, buildings, fences, and more. State minimums are often set pretty low, and today’s cars and repair costs can add up fast. A single at-fault accident involving a newer car or a building could easily exceed the minimum limit. The right amount of coverage depends on your financial situation and what you’d need to protect if you were on the hook for a serious accident. It’s worth thinking through before you just go with the minimum. Read the full thread on Reddit
What's the difference between medical payments and liability coverage?
Medical payments coverage (MedPay) and bodily injury liability both deal with medical costs, but differently. MedPay can help cover reasonable, accident-related expenses for you and, depending on your state, your passengers. In states like NJ and PA, passengers may need to go through their own auto policies first. Bodily injury liability covers other people’s expenses when you’re at fault, is required in most states, and can help cover costs if you’re found liable, though it doesn’t prevent someone from suing you. Read the full thread on Reddit
How do bodily injury liability limits work in Ohio?
Bodily injury coverage pays medical expenses for people you injure in an accident. Ohio requires 25/50 ($25k per person, $50k per accident), but this is often inadequate for serious injuries in today’s expensive medical environment. Consider 100/300 or higher limits for better protection. The insurance pays up to your limit, then you’re personally liable for excess amounts. At Lemonade, we help Ohio drivers choose appropriate bodily injury limits that actually protect them. Read the full thread on Reddit
A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of the policies issued, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage may not be available in all states. Please note that statements about coverages, policy management, claims processes, Giveback, and customer support apply to policies underwritten by Lemonade Insurance Company or Metromile Insurance Company, a Lemonade company, sold by Lemonade Insurance Agency, LLC. The statements do not apply to policies underwritten by other carriers.
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