Liability Insurance: What It Covers After a Crash

Liability insurance pays for injuries and property damage you cause to others in an at-fault accident. It's legally required in most states and covers the other driver's medical bills, vehicle repairs, and legal costs — but it won't pay for your own vehicle or medical expenses.

Updated April 2026

What Is Liability Insurance Insurance?

How Much Does Liability Insurance Insurance Cost?

  • Your driving record has the largest impact — a recent at-fault accident can increase liability premiums by 40–60%, while a DUI violation can double or triple your rate.
  • Coverage limits you select directly affect cost: increasing from state minimum 25/50/25 to 100/300/100 typically adds $15–$40 per month.
  • Your location determines both state-required minimums and regional claim costs — urban drivers in high-cost states like Michigan or California pay substantially more than rural drivers in low-minimum states.
  • Your age and experience matter significantly: drivers under 25 or over 70 typically pay 20–50% more for the same liability coverage.
  • Credit-based insurance score affects pricing in most states, with poor credit adding 30–80% to liability premiums in states where it's permitted.
  • Annual mileage and commute distance increase exposure — driving 20,000+ miles yearly can add 10–25% versus driving under 7,500 miles.

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Who Needs Liability Insurance Insurance?

Related Coverage Types

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