Updated March 2026
What Is Liability Insurance Insurance?
Liability insurance has two components: bodily injury (BI) liability and property damage (PD) liability. BI liability pays for medical bills, lost wages, pain and suffering, and legal fees when you injure someone in an at-fault accident. PD liability covers damage to other people's vehicles, fences, buildings, or property you hit. Your insurer defends you in court and pays settlements or judgments up to your policy limits — once those limits are exhausted, you're personally responsible for any remaining amount.
How Much Does Liability Insurance Insurance Cost?
- Your driving record directly impacts cost — a DUI can double or triple liability premiums compared to a clean record for 3–5 years after the incident.
- Coverage limits you choose: increasing from state minimum 25/50/25 to 100/300/100 typically adds $15–$40 per month, but protects you from catastrophic out-of-pocket costs.
- At-fault accidents in the past 3–5 years increase premiums by 20–50% even for liability-only coverage, with recent accidents weighted more heavily.
- ZIP code and state minimum requirements: urban areas and states with higher mandated limits (like Alaska's 50/100/25) drive up baseline costs.
- Age and claims history: drivers under 25 or those with multiple claims pay significantly more, as insurers view them as higher risk for future liability payouts.
- SR-22 filing requirements add $15–$50 to your annual premium, though the bigger cost driver is the underlying violation that triggered the SR-22.
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