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Last updated: December 2, 2024
How Much Liability Limits Coverage Do You Need?
Legal liability coverage requirements by states, and guidance on how much coverage you need.
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Liability coverage is required in most states, and encompasses both property damage and bodily injury coverage. Your limit matters because it’s how much your auto insurance provider will kick in before you have to pay out of pocket. Here is the information you need to know about choosing your liability limits, as well as how much insurance you may need.
Editor’s note (last updated December 2024): We have updated this page with the latest requirements and pricing data on liability limits.
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Liability Limits Coverage
Every state except New Hampshire and Florida requires both bodily injury and property damage liability coverage. While New Hampshire has no auto insurance requirements, Florida only requires property damage coverage and not bodily injury coverage. However, you’ll probably want more liability coverage than the minimum coverage your state mandates.
What It Covers
- Bodily injuries: Bodily injury covers any injuries or deaths you caused to another party in a car accident.
- Property damage: Property damage coverage will reimburse the other party for car repairs and other property damages you caused in at-fault accidents.
What It Doesn’t Cover
Liability coverage doesn’t cover you and your passengers’ injuries, deaths, or property damage for at-fault accidents. For these, you would need collision coverage, and medical payments coverage or personal injury protection (PIP). Liability coverage also doesn’t cover damages to your car from events other than collisions — like auto theft or vandalism, which requires comprehensive coverage.
Uninsured motorist coverage — not liability coverage — would cover your damages and injuries if someone with no insurance or insufficient insurance hits you.
How Liability Coverage Works
Say you hit another car, and were at-fault for the accident. If the passengers in the other car have injuries or the other car is damaged, your liability coverage would cover these costs up to the limit you’ve selected. For example, if you cause $10,000 in property damage, your insurance would pay out that amount, assuming you have limits of $10,000 or higher. If you have lower limits — say, $5,000 — your insurance would only pay out up to the limit.
Liability coverage does not include an insurance deductible, so once you file a claim and it’s approved, your insurance provider will begin liability payouts. However, if the bodily injuries or property damages are over the limit on your policy, you’d be responsible for paying the additional costs.
Do You Need Liability Coverage?
You need property damage coverage in every state except New Hampshire. Bodily injury coverage is required in every state except New Hampshire and Florida. An exception is if you need to file an SR-22 or FR-44, you will need to purchase bodily injury liability.
To protect yourself financially, it’s wise to purchase bodily injury and property damage liability with higher limits than the minimum, even if not required by law.
FYI:
If you live in Florida or New Hampshire and opt out of bodily injury coverage, you will be required to pay out of pocket for medical expenses if you injure someone in an accident.
State Requirements
The most common liability limits are $25,000 per person/$50,000 per accident for bodily injury, and $25,000 per accident for property damage.This table shows the minimum liability limits for each state, broken down by bodily injury and property damage limits.
| State | Bodily injury per person minimum limit | Bodily injury per accident minimum limit | Property damage minimum limit | Total liability minimum limit |
|---|---|---|---|---|
| Alabama | $25,000 | $50,000 | $25,000 | $100,000 |
| Alaska | $50,000 | $100,000 | $25,000 | $175,000 |
| Arizona | $25,000 | $50,000 | $15,000 | $90,000 |
| Arkansas | $25,000 | $50,000 | $25,000 | $100,000 |
| California (effective 2025) | $30,000 | $60,000 | $15,000 | $105,000 |
| Colorado | $25,000 | $50,000 | $15,000 | $90,000 |
| Connecticut | $25,000 | $50,000 | $25,000 | $100,000 |
| Delaware | $25,000 | $50,000 | $10,000 | $85,000 |
| D.C. | $25,000 | $50,000 | $10,000 | $85,000 |
| Florida | Not required | Not required | $10,000 | $10,000 |
| Georgia | $25,000 | $50,000 | $25,000 | $100,000 |
| Hawaii | $20,000 | $40,000 | $10,000 | $70,000 |
| Idaho | $25,000 | $50,000 | $15,000 | $90,000 |
| Illinois | $25,000 | $50,000 | $20,000 | $95,000 |
| Indiana | $25,000 | $50,000 | $25,000 | $100,000 |
| Iowa | $20,000 | $40,000 | $15,000 | $75,000 |
| Kansas | $25,000 | $50,000 | $25,000 | $100,000 |
| Kentucky | $25,000 | $50,000 | $25,000 | $100,000 |
| Louisiana | $15,000 | $30,000 | $25,000 | $70,000 |
| Maine | $50,000 | $100,000 | $25,000 | $175,000 |
| Maryland | $30,000 | $60,000 | $15,000 | $105,000 |
| Massachusetts | $20,000 | $40,000 | $5,000 | $65,000 |
| Michigan | $50,000 | $100,000 | $1 million within MI
$10,000 outside MI |
$150,000 |
| Minnesota | $30,000 | $60,000 | $10,000 | $100,000 |
| Mississippi | $25,000 | $50,000 | $25,000 | $100,000 |
| Missouri | $25,000 | $50,000 | $25,000 | $100,000 |
| Montana | $25,000 | $50,000 | $20,000 | $95,000 |
| Nebraska | $25,000 | $50,000 | $25,000 | $100,000 |
| Nevada | $25,000 | $50,000 | $20,000 | $95,000 |
| New Hampshire | Not required | Not required | Not required | $0 |
| New Jersey | $25,000 | $50,000 | $25,000 | $100,000 |
| New Mexico | $25,000 | $50,000 | $10,000 | $85,000 |
| New York | $25,000 | $50,000 | $10,000 | $85,000 |
| North Carolina | $30,000 | $60,000 | $25,000 | $115,000 |
| North Dakota | $25,000 | $50,000 | $25,000 | $100,000 |
| Ohio | $25,000 | $50,000 | $25,000 | $100,000 |
| Oklahoma | $25,000 | $50,000 | $25,000 | $100,000 |
| Oregon | $25,000 | $50,000 | $20,000 | $95,000 |
| Pennsylvania | $15,000 | $30,000 | $5,000 | $50,000 |
| Rhode Island | $25,000 | $50,000 | $25,000 | $100,000 |
| South Carolina | $25,000 | $50,000 | $25,000 | $100,000 |
| South Dakota | $25,000 | $50,000 | $25,000 | $100,000 |
| Tennessee | $25,000 | $50,000 | $25,000 | $100,000 |
| Texas | $30,000 | $60,000 | $25,000 | $115,000 |
| Utah (effective 2025) | $30,000 | $65,000 | $25,000 | $120,000 |
| Vermont | $25,000 | $50,000 | $10,000 | $85,000 |
| Virginia (effective 2025) | $50,000 | $100,000 | $25,000 | $175,000 |
| Washington | $25,000 | $50,000 | $10,000 | $85,000 |
| West Virginia | $25,000 | $50,000 | $25,000 | $100,000 |
| Wisconsin | $25,000 | $50,000 | $10,000 | $85,000 |
| Wyoming | $25,000 | $50,000 | $20,000 | $95,000 |
Some states are raising their minimum limits to reflect increased costs associated with car crashes, like medical care and car repairs. California, Utah, and Virginia are raising their liability limits effective January 1, 2025. Effective July 1, 2025, North Carolina is raising its liability limits to $50,000 per person/$100,000 per accident for bodily injury, and $50,000 per accident for property damage.
GOOD TO KNOW:
Liability limits are often written out in an abbreviated form. For example, you might see limits abbreviated to 100/300/100, which stands for $100,000 per person/$300,000 per accident in bodily injury liability, and $100,000 per accident for property damage.
Costs
Liability insurance costs an average of $547 per year, but the exact cost of liability insurance varies depending on the state in which you reside.
| State | Average annual cost of liability coverage (minimum coverage) |
|---|---|
| Alabama | $520 |
| Alaska | $528 |
| Arizona | $861 |
| Arkansas | $498 |
| California | $567 |
| Colorado | $891 |
| Connecticut | $1,528 |
| D.C. | $716 |
| Delaware | $1,183 |
| Florida | $1,632 |
| Georgia | $778 |
| Hawaii | $485 |
| Idaho | $538 |
| Illinois | $447 |
| Indiana | $416 |
| Iowa | $814 |
| Kansas | $531 |
| Kentucky | $881 |
| Louisiana | $2,275 |
| Maine | $412 |
| Maryland | $772 |
| Massachusetts | $808 |
| Michigan | $1,397 |
| Minnesota | $724 |
| Mississippi | $660 |
| Missouri | $752 |
| Montana | $465 |
| Nebraska | $406 |
| Nevada | $1,283 |
| New Hampshire | $471 |
| New Jersey | $967 |
| New Mexico | $831 |
| New York | $1,020 |
| North Carolina | $662 |
| North Dakota | $377 |
| Ohio | $694 |
| Oklahoma | $507 |
| Oregon | $984 |
| Pennsylvania | $768 |
| Rhode Island | $1,131 |
| South Carolina | $761 |
| South Dakota | $758 |
| Tennessee | $466 |
| Texas | $789 |
| Utah | $935 |
| Vermont | $324 |
| Virginia | $883 |
| Washington | $547 |
| West Virginia | $502 |
| Wisconsin | $470 |
| Wyoming | $276 |
How Much Car Insurance Coverage Do You Need?
Because the costs associated with car accidents (e.g., medical care for injuries, car repairs and replacements) have grown more expensive, state minimum coverage often does not provide adequate coverage if you are in an accident. We recommend these limits for car insurance coverage beyond the state requirements, if there’s room in your budget.
| Coverage type | Recommended limit |
|---|---|
| Bodily injury | $100,000 per person/$300,000 per accident, or more |
| Property damage | $50,000 to $100,000, or more |
| Uninsured motorist | Equal to bodily injury liability |
You can also purchase personal umbrella insurance, which is extra insurance that extends the limits of your coverage. For example, if you’ve reached your bodily injury liability limit, your personal umbrella policy could increase your coverage.1
NOTE:
Car insurance isn’t one-size-fits-all. Talk to your insurance agent or broker about how much car insurance you need, as it depends on your individual circumstances.
How Limits Affect Rates
In general, raising your liability limits results in a modest increase in premiums. The exact increase depends on your chosen coverages and other factors, including your driving history, location, and vehicle. While you’ll pay a little more, raising your limits is worthwhile, for the significantly-improved protection against financial losses in an accident. In other words: if you pay more now for auto liability coverage, you may end up paying a lot less later.
Questions to Ask When Buying Auto Liability Insurance
Whether you’re working with an agent or a broker, be sure to ask these questions while obtaining a car insurance quote:
- What is the minimum amount of liability coverage required by law?
- Who pays for the damage if the accident isn’t my fault?
- What are the limits?
- What’s covered?
- Who does it apply to?
- Is there a step-down clause?
- When does my coverage start and end?
- Is it a good idea to bundle my liability coverage with my homeowners insurance to save money?
- What other coverage options should I consider?
- Will all of my medical expenses be covered?
FYI:
A step-down clause is a policy provision that reduces liability coverage to lower limits in specific situations, such as when a non-named insured (like a family member or permissive driver) operates the vehicle. This reduced coverage may be significantly lower than the policyholder’s selected limits and could even default to the state’s minimum requirements, depending on the insurer and state regulations.
Liability Insurance for Non-Owners
Non-owner car insurance is a good idea for drivers who borrow or rent different cars frequently. It includes bodily injury and property damage liability coverage if you have an at-fault accident, and it’ll kick in when the owner has reached their policy’s liability limits. Keep in mind that non-owner car insurance includes liability coverage only, meaning the other party’s expenses are covered, so it won’t apply to your own damages or injuries in an at-fault accident. That would require medical payments insurance or personal injury protection.
Recap
Liability insurance is required in most states and covers the other party’s injuries and damages if you’re at fault in an accident, but not your own expenses. Each state has different minimum coverage requirements, with some states increasing their limits to account for rising accident costs. Given that accidents are becoming more expensive overall, it’s wise to raise your liability limits to at least 100/300/50 or 100/300/100 for better protection. While higher limits will increase your premiums in the short term, they offer financial protection against costly accidents and potential lawsuits, helping to secure your long-term financial stability.
FAQs
What does it mean if coverage limits are $25,000/$50,000?
If your coverage limits are $25,000/$50,000, it means you have a bodily injury liability limit of $25,000 per person and $50,000 per accident. In other words, if you are at-fault in an accident that results in injuries, your car insurance will pay for the other party’s bodily injuries up to $25,000 per person involved in the accident, capped at $50,000 for the whole accident.
What should my liability limits be?
Ideally, your liability limits should be at least $100,000 per person/$300,000 per accident for bodily injury, and $50,000 to $100,000 for property damage. You may opt for higher limits if you have a higher net worth or important assets (like a house) that you want to protect. That said, not everyone can afford this much coverage, so get as much coverage as you can afford to pay for in premiums.
What are coverage limits for insurance?
Coverage limits for insurance are the maximum amount your insurance company will pay if you have a covered claim.
What if my car is totaled and I only have liability?
If your car is totaled and you only have liability coverage, unfortunately you will be responsible for paying out of pocket to replace your vehicle. Because you don’t have comprehensive or collision coverage, your insurance company won’t reimburse you for your car’s actual market value, as liability coverage only pays for property damages for third parties in accidents you cause.
Senior Writer & Editor
A seasoned journalist and content strategist with over 10 years of editorial experience in digital media, Aliza Vigderman has written and edited hundreds of articles on the site, covering everything from plan coverages to discounts to state laws. Previously, she was a senior editor and industry analyst at the home and digital security website Security.org, previously called Security Baron. She has also contributed to The Huffington Post, SquareFoot, and Degreed. Aliza studied journalism at Brandeis University.
Citations
Umbrella Insurance – How it Works & What it Covers. Geico. (2024).
https://www.geico.com/information/aboutinsurance/umbrella/.
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