Compare Car Insurance Rates in Ohio
See if you qualify for a lower rate in less than 2 minutes
What Is Liability Only Car Insurance?
Liability only car insurance is the most basic form of auto coverage available — and the minimum required by law in nearly every U.S. state. Unlike full coverage, it only pays for damage or injuries you cause to other people. Your own vehicle, your own injuries, and your own property are not protected.
A liability-only policy is made up of two core components:
| Coverage Type | What It Pays For |
|---|---|
| Bodily Injury Liability (BI) | Medical bills, lost wages, and legal fees for people you injure in an at-fault accident |
| Property Damage Liability (PD) | Repairs to other vehicles, fences, buildings, or property you damage |
Coverage limits are written in a three-number format such as 25/50/25, which means:
- $25,000 per injured person
- $50,000 total per accident
- $25,000 for property damage
Some states also require additional protections like Personal Injury Protection (PIP) or Uninsured Motorist Coverage (UM) as part of their minimum package — so your "liability-only" policy may include a few extras depending on where you live. You can learn more about how bodily injury liability works and what limits mean for you personally.
Compare Car Insurance Rates in Ohio
See if you qualify for a lower rate in less than 2 minutes
What Liability Insurance Does NOT Cover
This is where many drivers get caught off guard. Liability insurance only faces outward — toward the other party. Here's what it will not pay for:
If someone hits your car and flees the scene, or a hailstorm dents your hood, liability-only leaves you paying out of pocket. That's why understanding the difference between liability vs. full coverage is so critical before choosing your policy.
Protect your car with Farmers
Average Rate:
Find coverage options that fit your budget.
The insurance savings you expect.
Average Rate:
Enjoy personalized policies, comprehensive coverage & more.
See how much you could save today!
Average Rate:
Drivers who switch their auto insurance and save with State Farm save $764 on average!
Safe Drivers Save with Allstate®
Average Rate:
Get rewarded with savings for having a clean driving record.
Average Liability-Only Insurance Costs by State (2026)
One of the biggest advantages of liability-only coverage is cost. Nationally, liability-only car insurance averages around $67–$76 per month ($805–$912 per year) for minimum coverage — compared to $136–$225 per month ($1,631–$2,697 per year) for full coverage. That's a potential savings of 50–70% per year, depending on your state and driving profile.
Here's a snapshot of what liability-only minimum coverage costs in select states as of 2026:
| State | Est. Monthly Cost | Est. Annual Cost |
|---|---|---|
| South Dakota | ~$31 | ~$372 |
| Vermont | ~$35 | ~$420 |
| Iowa | ~$36 | ~$432 |
| Wisconsin | ~$41 | ~$492 |
| Maine | ~$43 | ~$516 |
| Idaho | ~$45 | ~$540 |
| Hawaii | ~$46 | ~$552 |
| Montana | ~$46 | ~$552 |
| Virginia | ~$67 | ~$804 |
| Georgia | ~$68 | ~$816 |
| California | ~$69 | ~$828 |
| Texas | ~$79 | ~$948 |
| Florida | ~$87 | ~$1,044 |
| Utah | ~$90 | ~$1,080 |
| Delaware | ~$116 | ~$1,392 |
| Connecticut | ~$128 | ~$1,536 |
| Nevada | ~$147 | ~$1,764 |
Note: Costs vary based on your age, driving record, vehicle, ZIP code, and insurer. These figures represent average estimates for minimum liability coverage. Always compare quotes from multiple providers to find the cheapest liability-only insurance for your situation.
State minimum requirements have shifted significantly in 2025–2026. California raised its minimums to 30/60/15 in January 2025 — its first update in 56 years — with another planned increase to 50/100/25 scheduled for 2035. New Jersey phased in 35/70/25 effective January 2026. And beginning July 1, 2026, Florida will eliminate its no-fault PIP system entirely and require standard bodily injury liability of 25/50 plus $10,000 property damage — a major shift for Florida drivers. Keeping up with liability car insurance coverage and costs ensures you're always compliant and covered.
Who Should Consider Liability Only Insurance?
Liability-only isn't the right fit for everyone — but for certain drivers, it's a smart financial decision. Here's a breakdown of who benefits most:
The 10% Vehicle Value Rule
A widely used rule of thumb for deciding between liability-only and full coverage is the 10% rule:
If your annual full coverage premium exceeds 10% of your car's current market value (minus your deductible), dropping to liability-only may make financial sense.
For example, if your car is worth $5,000 with a $1,000 deductible, the maximum insurance payout is $4,000. If you're paying $800/year or more for full coverage, that's at or above the 10% threshold — and switching to liability-only could free up significant cash annually.
To apply this rule:
- Look up your car's current value on Kelley Blue Book or similar tools
- Subtract your deductible from that value
- Get a full coverage premium quote
- Divide the premium by the adjusted car value
- If the result is above 10% (0.10), liability-only is worth considering
Liability-only insurance for older cars is one of the most common and financially sound reasons to drop full coverage. Drivers of paid-off, lower-value vehicles can redirect that premium savings toward an emergency fund. You can also review how the liability vs. full coverage cost comparison helps you understand the true dollar difference based on your situation.
Recommended Coverage Limits Beyond State Minimums
Just because you've chosen liability-only doesn't mean you have to stick with the bare legal minimum. State minimums are often dangerously inadequate in real-world accidents, and the financial consequences of being underinsured can be severe. Learn more about whether your liability limits are truly sufficient for your situation.
The Risks of Minimum Coverage
- You're personally on the hook for any damages that exceed your limits. If your policy covers $35,000 in bodily injury and the injured party's bills reach $100,000, you owe the remaining $65,000.
- Your assets can be seized. Courts can garnish wages or place liens on property to satisfy a judgment against you.
- Medical costs have surged. Average emergency room visits now range from $1,700 to $2,600 depending on the type of care and insurer — and serious injuries requiring surgery can easily top $100,000 — far beyond what most state minimums provide.
- Rising vehicle prices. The average new vehicle transaction price has surpassed $49,000, meaning property damage minimums of $10,000–$25,000 are dangerously inadequate in many accidents. Learn more about property damage liability coverage and why higher limits matter.
Recommended Liability Limits
| Level | Bodily Injury | Property Damage | Best For |
|---|---|---|---|
| State Minimum | 25/50–50/100 (varies) | $10K–$50K | Legal compliance only — not recommended |
| Mid-Range | 50/100 | $50K | Drivers with moderate assets |
| Recommended | 100/300 | $100K | Most drivers — strong protection |
| High/Umbrella | 250/500+ | $100K+ | High net worth individuals |
Most insurance professionals recommend a minimum of 100/300/100 as your liability limits. The cost difference between minimum coverage and 100/300/100 is often just a few dollars per month — but the protection gap is enormous. For a detailed breakdown of how much property damage coverage you really need, it's worth reviewing your options carefully. You can also use our guide to bodily injury liability coverage to understand what limits best match your assets.
Frequently Asked Questions
What does liability only car insurance cover?
Liability only car insurance covers two things: bodily injury liability and property damage liability. Bodily injury pays for the medical bills, lost wages, and legal costs of people you injure in an at-fault accident. Property damage covers repairs to the other party's vehicle or any property you damage. It does not cover your own car, your own injuries, or any non-collision damage like theft or weather.
How much does liability only insurance cost on average in 2026?
Nationally, liability only car insurance averages around $67–$76 per month ($805–$912 per year) for minimum coverage as of 2026. Low-cost states like South Dakota ($31/month) or Iowa ($36/month) are among the most affordable, while higher-cost states like Nevada ($147/month) and Connecticut ($128/month) are significantly more expensive. Your individual rate is also influenced by your age, driving history, credit score, and the insurer you choose.
When should I switch from full coverage to liability only?
The best time to switch is when your vehicle's value has dropped to the point where full coverage premiums no longer make financial sense. Use the 10% rule: if your annual full coverage premium exceeds 10% of your car's current value (minus your deductible), liability-only may be the smarter choice. You should also have enough savings to cover a potential out-of-pocket repair or replacement before making the switch. Check out our guide on the liability vs. full coverage cost comparison to weigh your options.
Is liability only insurance enough to drive legally?
Yes — as long as you meet your state's current minimum coverage requirements. Nearly every state mandates some form of liability coverage, and a basic liability policy will satisfy those legal requirements. However, "legal" and "adequate" are not the same thing. State minimums are often far too low to fully cover a serious accident, and you remain personally responsible for any damages that exceed your policy limits. Review the full liability car insurance explained guide to understand what you may be giving up.
Can I get liability only insurance on a financed car?
No. If your vehicle is financed or leased, your lender or lessor requires full coverage — including collision and comprehensive — as a condition of the loan. Dropping to liability-only on a financed vehicle violates your agreement and can lead to force-placed insurance, which is typically far more expensive and benefits the lender, not you. Once the vehicle is fully paid off, you have the freedom to reassess your coverage needs using tools like the 10% rule and our property damage liability guide.