Liability Insurance: What It Covers & What You'll Pay

Liability insurance pays for injuries and property damage you cause to others in an at-fault accident — it's legally required in almost every state and typically the largest portion of your auto insurance premium. If you have points on your license, your liability rates increase because insurers view you as higher-risk to cause a future claim.

Updated April 2026

What Is Liability Insurance Insurance?

How Much Does Liability Insurance Insurance Cost?

  • Number and type of license points — a speeding ticket adds 15% to 30%, an at-fault accident adds 40% to 60%, and a DUI can double or triple your liability premium.
  • Your liability limits — increasing from 25/50/25 to 100/300/100 typically adds $15 to $40/mo, a cost-effective upgrade if you have assets to protect.
  • Your ZIP code and state — Michigan, Louisiana, and Florida have the highest liability costs due to lawsuit trends and medical costs, while Idaho, Maine, and Vermont are typically lowest.
  • Your age and driving tenure — young drivers under 25 pay significantly more, but that penalty compounds with points; a 22-year-old with a speeding ticket may pay double what a 45-year-old with the same ticket pays.
  • Credit-based insurance score in states that allow it — poor credit combined with points can push you into non-standard carriers with rates 50% to 150% higher than standard market.
  • Annual mileage and vehicle use — higher mileage increases your liability exposure and premium, especially if you commute in heavy traffic where rear-end accidents are common.

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Who Needs Liability Insurance Insurance?

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