Updated March 2026
What Is Liability Insurance Insurance?
Liability insurance has two components: bodily injury (BI) liability and property damage (PD) liability. Bodily injury liability covers medical expenses, lost wages, pain and suffering, and legal fees when you injure someone in an at-fault accident. Property damage liability pays to repair or replace another person's vehicle, fence, building, or other property you damage. Both coverages pay up to your policy limits per person and per accident, and your insurer provides legal defense if you're sued.
How Much Does Liability Insurance Insurance Cost?
- Your driving record and violation history — a DUI or at-fault accident in the past three to five years can double or triple liability premiums compared to a clean record.
- Coverage limits you select — increasing from state minimum 25/50/25 to 100/300/100 limits typically adds $15 to $40 per month.
- Your state's minimum required limits — states with higher minimums (like Alaska's 50/100/25) have higher baseline premiums than states with lower floors (like California's 15/30/5).
- Whether you need an SR-22 filing — the filing itself costs $15 to $50, but being classified as high-risk due to the underlying suspension can increase your liability premium by 50% to 200%.
- Your ZIP code and population density — urban areas with higher accident rates and litigation costs have higher liability premiums than rural areas.
- Your age and gender — younger male drivers typically pay more for liability coverage due to statistically higher at-fault accident rates.
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