CarInsurance.com Insights
- State minimum liability coverage may not cover the real cost of a serious accident.
- Liability insurance pays for injuries and property damage you cause to others.
- Increasing coverage limits usually adds only a small amount to your premium.
- Higher limits protect your savings, home and other assets from lawsuits.
- Experts often recommend at least 100/300/100 liability coverage for stronger protection.
The hidden risk of minimum car insurance coverage
Every state requires drivers to carry a minimum level of liability insurance, but those limits were often set years ago and haven’t kept pace with today’s accident costs.
A single crash involving multiple injuries or a newer vehicle can easily exceed the legal minimum. When that happens, the driver responsible for the accident may have to pay the remaining costs out of pocket.
That’s why insurance experts frequently recommend carrying higher liability limits than the state requires.
What does liability car insurance cover?
Liability insurance protects other people when you cause an accident. It typically includes two parts, bodily injury liability and property damage liability.
Bodily injury liability
This coverage helps pay for medical expenses, rehabilitation costs, lost wages and legal fees for people injured in an accident you caused.
Property damage liability
This coverage pays for repairs or replacement of vehicles or other property damaged in the crash, such as another car, fence, building or street sign.
Liability insurance does not cover damage to your own vehicle. That protection comes from collision and comprehensive coverage.
Understanding liability coverage limits
Car insurance liability limits are typically written using three numbers, such as 50/100/50.
These numbers represent:
- $50,000 bodily injury coverage per person
- $100,000 bodily injury coverage per accident
- $50,000 property damage coverage
If injuries or damages exceed these limits, you could be responsible for paying the remaining costs yourself.
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Why do experts recommend higher coverage limits?
Accident costs have increased significantly in recent years due to rising medical expenses, vehicle repair costs and legal claims.
For example:
- New vehicle prices frequently exceed $35,000
- Hospital treatment for serious injuries can reach tens of thousands of dollars
- Multi-vehicle accidents can generate large liability claims
Because of these risks, many insurance professionals recommend drivers carry at least 100/300/100 coverage if they have assets to protect.
When does it make sense to raise your liability limits?
Increasing your liability coverage may be especially important if you:
- Own a home or property
- Have savings or investments to protect
- Drive frequently or commute long distances
- Own a newer or high-value vehicle
- Want stronger protection against lawsuits
The more assets you have, the more important higher liability limits become.
How much does it cost to increase your liability coverage?
Many drivers assume that doubling their liability coverage will dramatically increase their premium. In reality, raising coverage limits often adds only a modest amount to your annual premium. For many drivers, that small increase can provide significantly stronger financial protection.
Raising liability limits often costs only a small increase in your annual premium compared with state minimum coverage. On average, increasing coverage from state minimum to a higher liability-only policy costs about $107 more per year, based on rates across all 50 states and Washington, D.C.
- Largest increases: Florida (+$557), Louisiana (+$371), Pennsylvania (+$283)
- Smallest increases: Virginia (+$13), Maine (+$9), Alaska (+$19)
In the table below, see the increase from state minimum to 50/100/50 liability-only coverage in each state and the percentage increase.
| State | State minimum liability | 50/100/50 liability-only coverage | Percentage increase |
|---|---|---|---|
| Alabama | $596 | $633 | 6.2% |
| Alaska | $681 | $700 | 2.8% |
| Arizona | $684 | $787 | 15.1% |
| Arkansas | $645 | $707 | 9.6% |
| California | $1,019 | $1,120 | 9.9% |
| Colorado | $692 | $799 | 15.5% |
| Connecticut | $1,112 | $1,201 | 8.0% |
| Delaware | $1,525 | $1,703 | 11.7% |
| Florida | $1,763 | $2,320 | 31.6% |
| Georgia | $982 | $1,094 | 11.4% |
| Hawaii | $475 | $546 | 14.9% |
| Idaho | $534 | $577 | 8.1% |
| Illinois | $752 | $827 | 10.0% |
| Indiana | $572 | $620 | 8.4% |
| Iowa | $450 | $491 | 9.1% |
| Kansas | $616 | $691 | 12.2% |
| Kentucky | $599 | $649 | 8.3% |
| Louisiana | $1,231 | $1,602 | 30.1% |
| Maine | $461 | $470 | 2.0% |
| Maryland | $1,428 | $1,621 | 13.5% |
| Massachusetts | $1,327 | $1,496 | 12.7% |
| Michigan | $1,577 | $1,682 | 6.7% |
| Minnesota | $1,099 | $1,171 | 6.6% |
| Mississippi | $599 | $667 | 11.4% |
| Missouri | $496 | $543 | 9.5% |
| Montana | $519 | $566 | 9.1% |
| Nebraska | $447 | $508 | 13.6% |
| Nevada | $1,746 | $2,036 | 16.6% |
| New Hampshire | $673 | $722 | 7.3% |
| New Jersey | $1,568 | $1,691 | 7.8% |
| New Mexico | $668 | $772 | 15.6% |
| New York | $2,546 | $2,902 | 14.0% |
| North Carolina | $693 | $693 | 0.0% |
| North Dakota | $462 | $498 | 7.8% |
| Ohio | $418 | $452 | 8.1% |
| Oklahoma | $613 | $667 | 8.8% |
| Oregon | $767 | $850 | 10.8% |
| Pennsylvania | $928 | $1,211 | 30.5% |
| Rhode Island | $1,054 | $1,300 | 23.3% |
| South Carolina | $832 | $915 | 10.0% |
| South Dakota | $490 | $534 | 9.0% |
| Tennessee | $658 | $698 | 6.1% |
| Texas | $1,006 | $1,112 | 10.5% |
| Utah | $1,011 | $1,088 | 7.6% |
| Vermont | $365 | $404 | 10.7% |
| Virginia | $689 | $702 | 1.9% |
| Washington | $668 | $729 | 9.1% |
| Washington, D.C. | $918 | $1,052 | 14.6% |
| West Virginia | $520 | $637 | 22.5% |
| Wisconsin | $743 | $888 | 19.5% |
| Wyoming | $326 | $354 | 8.6% |
Frequently Asked Questions: Liability coverage
What is liability car insurance?
Liability car insurance pays for injuries and property damage you cause to other people in an accident.
What liability coverage is recommended?
Many insurance experts recommend 100/300/100 liability coverage for stronger financial protection.
Is minimum liability insurance enough?
Often it is not. Serious accidents can easily exceed state minimum coverage limits.
Does liability insurance cover my own car?
No. Liability insurance covers damage to others. Your vehicle requires collision or comprehensive coverage.
Resources & Methodology
Methodology
CarInsurance.com commissioned Quadrant Information Services to get car insurance rates. The rates are based on the sample profiles of 40-year-old male and female drivers carrying full coverage policies with limits of 100/300/100 and $500 collision and comprehensive deductibles. Read the detailed methodology for more information.
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