Liability-only car insurance is a policy that covers costs for other people's injuries or property damage if you're at fault in an accident. It does not cover your own vehicle repairs or medical expenses. This is the most basic and legally required form of auto insurance in most states. The core components are bodily injury liability (BI), which pays for others' medical bills, and property damage liability (PD), which covers damage you cause to someone else's car or property, like a fence or building.
Every state that mandates car insurance sets its own minimum coverage levels, typically expressed as three numbers (e.g., 25/50/25). This means $25,000 for injuries per person, up to $50,000 per accident, and $25,000 for property damage. The table below shows minimum requirements for a selection of states, demonstrating significant variation.
| State | Bodily Injury Liability (per person) | Bodily Injury Liability (per accident) | Property Damage Liability (per accident) |
|---|
| Florida | $10,000 | $20,000 | $10,000 |
| California | $15,000 | $30,000 | $5,000 |
| New York | $25,000 | $50,000 | $10,000 |
| Texas | $30,000 | $60,000 | $25,000 |
| Alaska | $50,000 | $100,000 | $25,000 |
| Pennsylvania | $15,000 | $30,000 | $5,000 |
This type of policy is often chosen by drivers with older, low-value cars where the cost of full coverage (which includes collision and comprehensive) may exceed the car's worth. The major risk is that if you cause an accident, you are personally responsible for all costs to repair your own car and treat your own injuries. If the damages you cause exceed your policy limits, you could be sued for the difference. It's a calculated financial decision that prioritizes legal compliance and protecting your assets from others' claims over protecting your own vehicle.
