Liability car insurance is required by state law, and the minimums vary depending on where you live

If you're involved in an accident, liability insurance covers any damage you cause to the other vehicle, driver, and its passengers. Liability car insurance is required by state law, but the exact coverage requirements and minimums vary by state.

Types of liability insurance

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.

Uninsured motorists have no insurance, but underinsured motorists have some insurance but not enough to cover damages. Some states require both uninsured and underinsured coverage. 

Minimum car liability insurance requirements by state

If you're involved in an accident, liability insurance covers damage you cause to the other vehicle, driver, and its passengers. Below is a list of state minimum requirements from the Insurance Information Institute (III).

Coverage minimums are listed with numbers and slashes. For example, a 50/100/50 policy would cover up to $50,000 of injury protection for each person involved in an accident, up to $100,000 worth of injuries per incident, and up to $50,000 of property damages per incident. 

The different types of car insurance coverage

There are three main types of car insurance: liability, comprehensive, and collision. Full car coverage is a mixture of all three offering complete coverage for your car that includes liability, collision, and comprehensive coverage.

*Most states require some type of liability 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.

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