Car insurance is required by state law, unlike homeowners insurance. There are four main types of car insurance: comprehensive, collision, and liability. Full coverage is a combination of the three.
The minimum coverage requirements for liability insurance vary by state, but if you finance or lease your car, your lender probably requires comprehensive and collision coverage.
What is liability car insurance?
If you're involved in an accident, liability insurance covers damage you cause to the other vehicle, driver, and its passengers. Liability coverage is required by law — except in New Hampshire.
The two main components of liability insurance are bodily injury and property damage, which most states require.
Liability insurance also includes uninsured motorist and underinsured motorist coverage, to protect you when an at-fault driver hits you and they have no coverage, or not enough coverage. (Some states also require uninsured and underinsured motorist coverage.)
| Types of liability insurance | Definition |
| Bodily injury (BI) | Injury you cause to others, includes medical expenses, lost wages, and funeral expenses |
| Property damage (PD) | Damage you cause to others' vehicle or property |
| Uninsured motorist (UM) | Protects you when an at-fault driver hits you with no insurance |
| Underinsured motorist (UIM) | Protects you when an at-fault driver hits you with not enough coverage |
Coverage minimums for liability insurance are usually listed with numbers and slashes. For example, a 25/50/10 policy would cover up to $25,000 of injury protection for each person involved in an accident, up to $50,000 worth of injuries per incident, and up to $10,000 of property damage per incident.
What does liability insurance cover?
Liability insurance does not cover damage to you or your vehicle, only damage you cause to others or their vehicle. Coverage for your vehicle requires comprehensive, collision, or full coverage.
| Damage | Comprehensive | Collision | Liability* | Full |
| Theft | Yes | No | No | Yes |
| Vandalism | Yes | No | No | Yes |
| Fire | Yes | No | No | Yes |
| Natural disaster | Yes | No | No | Yes |
| Falling objects (tree) | Yes | No | No | Yes |
| Animal damage | Yes | No | No | Yes |
| Collision/accident | No | Yes | No | Yes |
| Rollover | No | Yes | No | Yes |
| Bodily injury/medical bills | No | No | Yes | Yes |
| Physical damage | No | No | Yes | Yes |
| Property damage | No | No | Yes | Yes |
| Uninsured motorist | No | No | Yes | Yes |
*Most states require some type of liability coverage
Comprehensive car insurance coverage, meanwhile, replaces or repairs your vehicle if it's stolen or damaged. Comprehensive coverage typically covers damage from fire, vandalism, or falling objects like a tree or hail.
Collision insurance covers accidents and collisions. If you lease or finance your vehicle, your lender may require both comprehensive and collision coverage.
How much does liability insurance cost?
The cost of liability coverage varies depending on your state, as some states require more coverage than others.
Remember, your average cost will vary based on the type of vehicle, your location, mileage, and driving record. The table below shows average costs for collision, liability, and comprehensive coverage. The average cost is the annual car insurance premium the average person in that state paid.
| State | Liability | Collision | Comprehensive | Average cost |
| Alabama | $511.13 | $380.51 | $175.28 | $904.56 |
| Alaska | $576.09 | $387.12 | $147.87 | $965.44 |
| Arizona | $646.75 | $326.28 | $208.25 | $1,046.40 |
| Arkansas | $486.72 | $375.25 | $235.36 | $898.89 |
| California | $616.51 | $483.60 | $94.72 | $1,034.05 |
| Colorado | $687.40 | $330.50 | $272.44 | $1,132.81 |
| Connecticut | $784.70 | $407.54 | $133.86 | $1,216.55 |
| Delaware | $900.32 | $352.86 | $140.52 | $1,291.39 |
| D.C. | $809.41 | $535.96 | $228.71 | $1,429.43 |
| Florida | $1,009.94 | $361.79 | $149.26 | $1,426.46 |
| Georgia | $797.80 | $408.41 | $176.31 | $1,212.04 |
| Hawaii | $479.27 | $357.78 | $107.66 | $829.15 |
| Idaho | $425.89 | $262.67 | $139.75 | $722.06 |
| Illinois | $515.94 | $339.04 | $140.57 | $916.49 |
| Indiana | $442.69 | $286.49 | $135.63 | $767.72 |
| Iowa | $348.87 | $252.65 | $214.65 | $700.71 |
| Kansas | $421.78 | $287.24 | $276.33 | $805.15 |
| Kentucky | $611.54 | $312.51 | $164.68 | $936.91 |
| Louisiana | $1,015.36 | $487.44 | $248.57 | $1,545.82 |
| Maine | $374.59 | $294.80 | $113.33 | $686.25 |
| Maryland | $737.73 | $422.06 | $167.61 | $1,211.83 |
| Massachusetts | $658.47 | $440.55 | $147.06 | $1,167.16 |
| Michigan | $952.15 | $479.11 | $159.08 | $1,469.73 |
| Minnesota | $499.48 | $265.74 | $206.45 | $872.65 |
| Mississippi | $538.35 | $372.17 | $239.34 | $971.19 |
| Missouri | $520.45 | $315.49 | $216.92 | $913.81 |
| Montana | $435.81 | $283.65 | $306.00 | $825.87 |
| Nebraska | $429.35 | $272.48 | $260.97 | $796.87 |
| Nevada | $900.40 | $366.54 | $119.28 | $1,260.43 |
| New Hampshire | $436.76 | $327.30 | $118.58 | $847.58 |
| New Jersey | $955.93 | $414.39 | $130.26 | $1,385.61 |
| New Mexico | $576.81 | $311.24 | $214.10 | $915.62 |
| New York | $920.25 | $457.77 | $180.64 | $1,425.00 |
| North Carolina | $391.29 | $342.13 | $137.45 | $734.06 |
| North Dakota | $307.97 | $279.45 | $256.76 | $686.08 |
| Ohio | $448.59 | $302.57 | $130.74 | $794.91 |
| Oklahoma | $508.89 | $346.73 | $267.99 | $915.49 |
| Oregon | $689.74 | $280.61 | $106.87 | $990.21 |
| Pennsylvania | $555.42 | $376.21 | $169.21 | $991.23 |
| Rhode Island | $885.33 | $474.58 | $140.40 | $1,333.12 |
| South Carolina | $702.37 | $318.08 | $207.09 | $1,093.97 |
| South Dakota | $333.44 | $244.47 | $327.11 | $721.67 |
| Tennessee | $477.07 | $355.01 | $163.83 | $855.78 |
| Texas | $659.47 | $442.88 | $269.90 | $1,152.25 |
| Utah | $601.77 | $309.20 | $127.53 | $941.14 |
| Vermont | $376.99 | $329.47 | $147.81 | $778.29 |
| Virginia | $492.68 | $316.05 | $148.25 | $853.78 |
| Washington | $689.18 | $312.65 | $118.19 | $1,035.34 |
| West Virginia | $521.74 | $350.20 | $224.86 | $938.71 |
| Wisconsin | $422.28 | $247.95 | $159.82 | $755.97 |
| Wyoming | $356.25 | $297.61 | $317.22 | $765.81 |
Data from the Insurance Information Institute (III)
Some states do not allow insurance companies to use your age, gender, or credit score as factors to determine your insurance premium. Therefore, costs will vary greatly from state to state.
To find the best liability coverage for you, use online quote tools to get multiple quotes. The policy with the lowest price for coverage, the most coverage types and limits, and the lowest deductible is the best one for you.
Who needs liability insurance?
Liability insurance is required by state law, except in New Hampshire.
If you lease or finance your car, most likely your lender will also require comprehensive and collision coverage.
Ronda Lee is an associate editor for insurance at Personal Finance Insider covering life, auto, homeowners, and renters insurance for consumers. She is also a licensed attorney who practiced litigation and insurance defense.