Cheap Liability Car Insurance
Liability insurance is the part of an auto policy that pays for the injuries and property damage you cause to other people in an at-fault accident. It is the coverage nearly every state requires you to carry, and a liability-only policy is usually the cheapest legal way to get on the road.
Here is what liability covers, how much of it you actually need, and a few practical ways to bring the premium down.
What liability insurance covers
A liability policy has two parts that work together after an accident you are responsible for:
- Bodily injury liability — pays the medical bills, lost wages, and legal costs of the other people hurt in a crash you caused.
- Property damage liability — pays to repair or replace the other driver's vehicle and any other property you damage, like a fence or mailbox.
What liability does not cover
Liability only protects other people and their property. It will not pay for your own injuries, your own vehicle, theft, vandalism, or weather damage. For that protection you need collision and comprehensive coverage, which together with liability make up a full-coverage policy.
How much liability coverage do you need?
Every state sets a legal minimum, often written as three numbers — for example 25/50/25, meaning $25,000 of bodily injury per person, $50,000 per accident, and $25,000 of property damage. Those minimums are low. A single serious injury or a totaled late-model car can easily exceed them, and anything above your limit comes out of your own pocket.
If you have savings or a home to protect, it is usually worth buying more than the minimum. Many drivers choose 100/300/100, which costs only a little more each month but dramatically lowers the risk of an out-of-pocket judgment.
Liability-only vs. full coverage
Liability-only makes the most sense when your car is paid off and worth less than a few thousand dollars, since the cost of full coverage may approach the value of the car itself. If you lease or finance your vehicle, the lender will almost always require full coverage until the loan is paid.
How to get cheaper liability insurance
- Compare several insurers — the same driver can see very different prices from one company to the next.
- Ask about discounts for safe driving, paying in full, going paperless, and bundling with renters or home insurance.
- Keep your record clean; tickets and at-fault claims raise rates for years.
- Choose only the limits you need, but do not drop below what would protect your assets.
- Review your policy each renewal — loyalty does not always earn you the lowest rate.
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Get my auto quotesThis guide is for general education only and is not insurance advice. Coverage, rates, and requirements vary by state and by insurer. Wise Choice Rate is an insurance comparison marketplace, not an insurer.