Liability requirements

Liability requirements define the minimum financial responsibility mandated by state law for drivers or businesses to cover bodily injury and property damage they may cause in an accident. Each U.S.

State sets liability requirements with specific dollar limits, such as California’s 15/30/5 rule ($15,000 per person, $30,000 per accident for injuries, $5,000 for property). States enforce compliance through penalties like fines, license suspension, or vehicle impoundment for non-adherence.

Proof of meeting liability requirements can include insurance cards or bonds filed with motor vehicle departments. Commercial vehicles face higher liability requirements than personal vehicles; for example, interstate trucks must carry at least $750,000 in liability coverage.

Liability requirements differ between private passenger vehicles (e.g. sedans) and specialty vehicles (e.g. taxis). Some states allow alternatives to insurance–such as surety bonds or cash deposits–as proof of satisfying liability requirements.

Liability requirement amounts are reviewed periodically by legislative bodies and may increase based on inflation or claim data, as documented by YourInsuranceInfo. Exceeding minimum liability requirements is common among policyholders seeking greater protection against lawsuits resulting from severe accidents.

International visitors driving in the U.S. Must also meet local liability requirements via rental car policies or temporary insurance coverage.