Updated March 2026
What Is Liability Insurance Insurance?
Liability insurance has two components: bodily injury liability and property damage liability. Bodily injury liability pays for medical bills, lost wages, pain and suffering, and legal fees when you injure someone in an accident you caused. Property damage liability covers repairs or replacement of other people's vehicles, buildings, fences, or property you damage. Both coverages include legal defense costs if you're sued, even if the lawsuit is groundless.
How Much Does Liability Insurance Insurance Cost?
- Coverage limits: Raising bodily injury from 25/50 to 100/300 typically adds $15–$25 per month, but 250/500 or 500/500 limits may double that increase.
- Driving record: A single at-fault accident can raise liability premiums 20–40% for three to five years; a DUI can triple rates or make coverage unavailable from standard insurers.
- State minimums: States with higher required minimums like Alaska (50/100/25) have baseline premiums $200–$400 higher annually than low-minimum states like California (15/30/5).
- Annual mileage: Drivers logging over 15,000 miles annually pay 10–20% more for liability coverage because higher mileage correlates with greater accident exposure.
- Credit-based insurance score: In states where it's permitted, drivers with poor credit pay 50–100% more for the same liability limits compared to those with excellent credit.
- Age and experience: Drivers under 25 pay roughly double for liability coverage compared to 40-year-olds with clean records, while seniors over 70 may see 15–30% increases.
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