Maintained by the Liability Only Car Insurance editorial team · Lead editor Marcus Bell · Reviewed
Answer in brief
Liability-only car insurance pays for the injuries and property damage you cause to other people—and nothing for your own car. It costs 40–60% less than full coverage and is the right structure for a paid-off car worth a few thousand dollars. The decision that matters most is not whether to carry collision but what liability limits to choose: 100/300/100 costs only 15–30% more than the state minimum and protects everything you own. Start with what it covers, test your car against when it makes sense, then compare quotes at fixed limits.
Liability-only car insuranceBodily injury and property damage limitsCollision/comprehensive decisionState minimum requirements
Two separate decisions
People use "liability-only" to mean two different things, and conflating them is the most common mistake on this topic. Dropping collision and comprehensive is a decision about your car's value. Choosing liability limits is a decision about your financial exposure. The first can sensibly go to zero on an old car. The second should almost never go to the state minimum.
How to use this guide
- 1
Know what you're buying
What it covers and the state minimums.
- 2
Decide about your car
- 3
Set your limits
- 4
Compare
How to compare at fixed limits across several insurers.
Start with the right guide
Each guide covers one decision in the liability only car insurance journey. Read them in order or jump to the one that matches your situation.
Guide
What Liability-Only Car Insurance Covers
Exactly what a liability-only policy pays for—bodily injury and property damage to others—and the list of things it never covers, including your own car.
Guide
How Much Liability-Only Car Insurance Costs
Typical liability-only premiums by state and driver, how much cheaper it is than full coverage, and why the saving is smaller than people expect at higher limits.
Guide
When Liability-Only Car Insurance Makes Sense
A practical test for choosing liability-only: car value, savings, loan status and risk tolerance—and the situations where it is a mistake.
Guide
Liability Insurance Minimums by State
Every state's minimum liability requirements and the extra coverages some states mandate—PIP, uninsured motorist, MedPay—in one reference table.
Guide
What Liability Limits to Choose
How to pick bodily injury and property damage limits: the state minimum vs 50/100/50 vs 100/300/100, what each protects, what each costs, and when an umbrella policy makes sense.
Guide
Liability-Only vs Full Coverage
A direct comparison of liability-only and full coverage: what each pays, what each costs, and a worked example for cars of different values.
Practical entries
Shorter, specific answers that sit inside the guides above.
Comprehensive-Only Coverage: The Middle Option
Why keeping comprehensive while dropping collision is often the best choice for a mid-value car, what it costs, and when it applies.
What Happens When an Auto Accident Exceeds Your Liability Limits?
Learn what happens when crash damages exceed your liability insurance limits, how personal liability works, and how to evaluate coverage options.
The 10 Percent Rule: When to Drop Full Coverage for Liability-Only
Use the 10 percent rule to calculate whether dropping collision and comprehensive coverage for liability-only car insurance makes financial sense.
Liability-Only Car Insurance for Teen Drivers: When Does It Make Sense?
Evaluate liability-only insurance for teen drivers. Learn how crash risk affects liability limits, asset exposure, and vehicle choices for families.
Do You Need Uninsured Motorist Coverage with Liability-Only Insurance?
Understand why uninsured motorist coverage is essential when dropping full coverage, how state laws treat it, and what happens when hit by an uninsured driver.
Quote finder
Compare liability only car insurance quotes for your situation
Questions & answers
What is liability-only car insurance?
A policy that covers injuries and damage you cause to others but not your own car. See what it covers.
How much does it cost?
Typically $500–$900 a year at state minimums for a clean-record adult. See cost.
When should I go liability-only?
On a paid-off car when collision and comprehensive cost 10% or more of its value per year. See when it makes sense.
What limits should I carry?
100/300/100 for most households. See limits.
Sources and references
Legal figures on this page (minimum limits, filing periods, statutory benefits) are checked against the primary law or the state insurance regulator listed below. Links and figures last verified Nov 2026.
- What is covered by a basic auto insurance policy? — Insurance Information InstituteConsumer guidanceDefines bodily injury and property damage liability, MedPay, PIP, uninsured/underinsured motorist, collision, comprehensive and glass coverage.
- How much auto coverage do I need? — Insurance Information InstituteConsumer guidanceWhy state minimums are a floor; choosing liability limits that protect assets; when collision and comprehensive are worth keeping.
- What determines the price of an auto insurance policy? — Insurance Information InstituteConsumer guidanceRating factors: driving record, mileage, location, age, gender, vehicle, credit-based insurance score, coverage choices. Notes ZIP-code rating is prohibited in California and Michigan and gender rating is prohibited in seven states.
- Nine ways to lower your auto insurance costs — Insurance Information InstituteConsumer guidanceShop at least three quotes; raising a deductible from $200 to $500 can cut collision/comprehensive cost 15–30%, $1,000 can save 40%+; drop physical damage on cars worth under 10× the premium; bundling, low-mileage and good-student discounts.
- Consumer insurance information — National Association of Insurance CommissionersConsumer guidancePlain-language guides from the body of state insurance regulators; links to every state's insurance department and complaint process.
Practical guidance on this page is original editorial work. Cited sources support factual statements and do not endorse this site. Dollar ranges described as typical or illustrative are editorial estimates, not figures from these sources.
From the blog
Commentary, rate-trend notes and reader questions.
August 4, 2026
Why Liability Pricing Mostly Ignores Your Car
People expect liability-only insurance on a cheap car to be cheap. Often it isn't. Here's what liability pricing actually looks at.
April 7, 2026
Reader Question: My Car Is Paid Off. Can I Drop to Minimum Liability?
A reader conflates dropping full coverage with dropping liability limits. They are different decisions with very different consequences.