Liability-Only Auto Insurance — What It Covers & What It Costs
Covers damage and injuries you cause to others — the legal minimum in most states.
Get Your Free Quote$400–$900/yr
Average Cost
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Key Benefits
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Related Coverages
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Understanding Liability-Only Auto Insurance
Liability-only auto insurance pays for bodily injury and property damage you cause to other people in an accident. It does not cover damage to your own vehicle. Every state except New Hampshire requires some form of liability coverage, making it the baseline legal requirement for most drivers.
This type of policy is split into two parts: bodily injury liability (BI) and property damage liability (PD). Bodily injury covers medical bills, lost wages, and legal fees for the other party, while property damage covers repairs to their vehicle or other property you damage.
Liability-only is the most affordable way to stay legal on the road. It's a practical choice for drivers with older vehicles where the cost of collision and comprehensive coverage would exceed the car's value. However, if you're in an at-fault accident, you'll pay for your own vehicle repairs and medical bills out of pocket.
Key Benefits
- Lowest-cost option to meet state legal requirements
- Covers medical bills and property damage for the other party
- Protects your assets from lawsuits after an at-fault accident
- Simple policy with straightforward coverage
Limitations to Know
- Does not cover damage to your own vehicle
- No protection against theft, vandalism, or weather damage
- You pay all your own medical bills after an accident
- State minimum limits may not fully cover a serious accident
Frequently Asked Questions
What is liability-only auto insurance?
Liability-only auto insurance pays for bodily injury and property damage you cause to other people in an accident. It does not cover damage to your own vehicle. Every state except New Hampshire requires some form of liability coverage, making it the baseline legal requirement for most drivers.
How much does liability-only auto insurance cost?
Liability-Only Auto Insurance typically costs $400–$900/yr. Your actual rate depends on factors like your driving record, location, vehicle, age, and credit score. Comparing quotes from multiple carriers is the best way to find the lowest rate.
Do I need liability-only auto insurance?
Drivers with older, low-value vehicles who want the most affordable legal coverage. Lowest-cost option to meet state legal requirements. Consider your vehicle's value, your financial situation, and whether your lender or state requires this coverage.
How does liability-only auto insurance work?
This type of policy is split into two parts: bodily injury liability (BI) and property damage liability (PD). Bodily injury covers medical bills, lost wages, and legal fees for the other party, while property damage covers repairs to their vehicle or other property you damage.
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