Updated March 2026
What Is Liability Insurance Insurance?
Liability insurance has two components: bodily injury liability (BI) and property damage liability (PD). Bodily injury liability pays for medical bills, lost wages, pain and suffering, and legal fees when you injure someone in an at-fault accident. Property damage liability covers repair or replacement costs when you damage another person's vehicle, fence, building, or other property. Both coverages include legal defense costs if you're sued, and they pay out up to your policy limits per accident.
How Much Does Liability Insurance Insurance Cost?
- Coverage limits: Increasing from 25/50/25 to 100/300/100 typically adds $15–$30 per month, but provides substantially more protection.
- Driving record: A single at-fault accident can increase liability premiums by 20–40% for three to five years; DUIs often double or triple rates.
- Location: Urban areas with high accident rates and expensive medical costs (like Michigan, Louisiana, and Florida) see liability premiums 50–100% higher than low-cost states like Idaho or Maine.
- Age and experience: Drivers under 25 pay significantly more for liability coverage due to higher crash rates; premiums typically drop after age 25 and continue declining into your 60s.
- Credit score: In states that allow credit-based insurance scoring, drivers with poor credit may pay 50–100% more for the same liability limits.
- Annual mileage: Drivers logging 15,000+ miles annually typically pay 10–20% more than those driving under 7,500 miles, as more time on the road increases accident exposure.
See How Much You Could Save
Get personalized liability insurance insurance quotes in minutes.