Liability Insurance: What It Covers & What You'll Pay
Liability insurance pays for injuries and property damage you cause to other people in an at-fault accident.
Compare Rates After SR-22What Is Liability Insurance Insurance?
Liability insurance has two components: bodily injury liability (BI) and property damage liability (PD). Bodily injury covers medical bills, lost wages, pain and suffering, and legal defense if you injure someone in an accident you cause. Property damage pays to repair or replace another person's vehicle, fence, building, or other property you damage. Your insurer pays these claims up to your policy limits, and also provides legal defense if you're sued — even if the lawsuit is ultimately baseless.
Who Needs Liability Insurance Insurance?
Liability insurance is legally required in 48 states, so nearly every driver must carry it. Post-SR22 drivers should strongly consider limits above state minimums — 100/300/100 is a common recommendation — because you're already in a higher-risk rating tier and a single at-fault accident with inadequate coverage can result in wage garnishment or asset liens that persist for years. If you have any assets worth protecting (a home, savings, retirement accounts), your liability limits should reflect that exposure.
Start with your state's minimum, then increase limits based on assets you want to protect. A common rule: carry liability limits at least equal to your net worth. Run quotes at multiple limit levels — the cost difference is often smaller than expected, especially with non-standard carriers who specialize in post-SR22 profiles.
How Much Does Liability Insurance Insurance Cost?
- Underlying violation type: DUI violations typically result in rates 2–3x higher than lapse-in-coverage SR-22s for the first 24 months after filing ends.
- Driving record beyond SR-22: A single additional at-fault accident during rate recovery can extend elevated pricing by 18–36 months.
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