On this page
Liability coverage pays for injuries and damage you cause to other people. Every state sets a minimum, and those minimums were written a long time ago. A single serious crash can produce medical bills and vehicle damage well beyond a minimum limit, and whatever the policy does not pay becomes your personal debt.
How insurers price higher limits
The first slice of liability coverage is the most expensive part of the premium, because smaller claims are common. Each higher slice costs less than the one before it, since large claims are rarer. That is why raising limits often adds a modest amount to a quote rather than doubling it, though the exact change depends on your record, address, and the insurer. Drivers with recent at fault accidents will see a steeper price for the same increase.
Our guide to liability only car insurance explains what this coverage pays for and what it leaves out.
What to weigh when choosing
Think about what you could lose. Wages can be garnished and savings and property can be pursued after a judgment in many states, so drivers with a home, savings, or higher income generally carry more to protect. Think also about who rides with you and where you drive. Long highway commutes and frequent driving in heavy traffic raise the chance of a severe crash compared with short local trips.
Umbrella policies and the limits beneath them
An umbrella policy adds another layer above your auto and home liability limits, but insurers require the underlying auto limits to reach a set level before they sell one. If you plan to buy umbrella coverage, choose auto limits that qualify from the start so you do not have to restructure the policy later. Our umbrella insurance guides explain how the layers fit together.
How to compare quotes
Ask each insurer to quote your current limits and the next step up, side by side. The difference is the real price of the added protection, and it is often smaller than the saving available from shopping itself. Review deductibles at the same time, since a deductible change only affects collision and comprehensive, not liability. Our article on minimum car insurance by state shows where your state’s floor sits before you decide how far above it to go.
