Cheapest Liability-Only Car Insurance (2023)
State Farm has the cheapest liability-only car insurance for most drivers, with average monthly rates around $41.
Find Cheap Liability-Only Car Insurance in Your Area
The average cost of liability auto insurance is $55 per month. You can find cheap liability insurance as low as $36 per month.
Liability only insurance is the cheapest coverage for an older car. But it only includes the minimum coverage required by your state, and it won't cover damage to your car after a crash.
Cheap liability insurance quotes
Who has the cheapest liability-only car insurance?
At $41 per month, State Farm has the cheapest liability-only car insurance among the largest auto insurance companies. State Farm's quotes are 33% cheaper than the average rate of $55.
Auto-Owners and Erie are cheaper regional companies with liability rates less than $40 per month.
Find Cheap Liability-Only Car Insurance in Your Area
USAA is the cheapest company for liability-only coverage, averaging only $31 per month. However, only current or former military members and their families can enroll.
Local car insurance companies are often cheaper than national brands. Some major names such as Nationwide and Allstate can be quite expensive on average. The cheapest liability insurance for you may change based on factors like your accident history, credit score and location.
Cheapest liability only car insurance rates
Major companies | Monthly rate | |
|---|---|---|
| Auto-Owners | $36 |
| Erie | $39 |
| State Farm | $41 |
| Farm Bureau | $43 |
| Geico | $52 |
*USAA is only available for current and former military members and their families.
- Collected thousands of car insurance quotes from every ZIP code in the country
- Gathered rates for minimum coverage policies that meet state coverage requirements
- Found the cheapest liability-only companies by comparing average rates
How to find the cheapest liability-only car insurance
When comparing the cheapest companies for liability-only car insurance, the best way to get affordable rates is to get quotes from multiple insurance companies for the exact coverage you need.
The cheapest companies for liability-only coverage don't always have the cheapest full coverage policies.
In other words, just because an insurance company has the best quotes for a full coverage car insurance policy doesn't mean that it will also offer you the lowest rate for a liability-only policy.
How much cheaper is liability-only coverage?
Liability car insurance costs an average of 62% less than full coverage. Liability-only car insurance is much cheaper than full coverage insurance because it doesn't include collision and comprehensive coverage.
Find Cheap Liability-Only Car Insurance in Your Area
Monthly cost of liability-only vs. full coverage car insurance
Company | Liability rate | Full rate | Savings |
|---|---|---|---|
| Auto-Owners | $36 | $120 | $84 |
| Erie | $39 | $101 | $62 |
| State Farm | $41 | $99 | $58 |
| Farm Bureau | $43 | $134 | $91 |
| Geico | $52 | $140 | $88 |
Why is liability-only car insurance so much cheaper?
Liability-only insurance will not pay for damage to your car if you:
- Cause an accident
- Are the victim of a hit-and-run (except when your state requires uninsured motorist coverage)
- Have weather-related car damage or hit a deer
- Have a car that's vandalized or stolen
A full coverage policy includes more types of coverage than a liability policy. Plus, full coverage usually has higher coverage limits to protect you in more expensive accidents.
Full coverage insurance generally includes:
- Liability protection above the minimum requirement
- Collision and comprehensive coverage
- Any other coverages required by law, such as personal injury protection (PIP)
Dropping collision and comprehensive coverage lowers your car insurance bill. However, you'll have much higher repair bills after an accident because you'll have to fix your car yourself.
How much is liability-only car insurance in my state?
The cost of auto insurance varies based on where you live. This is because each state has its own insurance laws. And states have different types of risks such as hurricanes or crime.
South Dakota has the cheapest rate for minimum coverage, at $28 per month on average. Michigan's average rate of $196 per month is the most expensive.
How much is liability car insurance near me?
When should I get liability-only car insurance?
Liability-only coverage is usually a good idea if your car is worth less than $5,000 or is more than 8 years old.
With an older car, collision and comprehensive coverage could cost more than what you could get paid out after a claim.
For example, if your car is totaled in an accident, the most that the insurance company will pay is the car's actual cash value (ACV).
- For a new car that's worth $20,000, the insurance company will pay you a maximum of $20,000 after an accident. This makes it worth it to have full coverage because of the high potential insurance payout.
- For an older car that's worth $5,000, you could be paying more than $1,000 per year for comprehensive and collision coverage. But you'd only get up to $5,000 if your car is totaled in an accident. In a few years without a car accident, you would have paid more for insurance than the value of your car.
When to drop comprehensive and collision coverage
You should drop full coverage when you can reasonably afford to replace your vehicle if you have to. Paying for full coverage becomes a worse deal the longer you have your vehicle.
If you have an older or less expensive car, it's a better deal to drop full coverage and pay for your own car repairs after an accident. However, those without a savings cushion may want to pay for full coverage to avoid unexpected bills after an accident.
When to consider liability-only coverage
- Your car is older or not valuable.
- You don't have a daily commute.
- You don't often drive at night.
- You are older than 25.
- You have enough savings to replace your car if it's destroyed or stolen.
- You park your car indoors at night.
- You don't have a car loan or lease.
What is liability-only car insurance?
Liability-only car insurance pays for other people's medical care and car repairs after an accident you cause. It's also the minimum amount of car insurance you can buy to legally drive your car.
In most states, liability-only car insurance includes:
- Bodily injury liability: Pays for injuries and medical bills of drivers and passengers in another vehicle if you cause an accident.
- Property damage liability: Pays for damage to other vehicles and property caused by an accident that's your fault.
You can also opt for a high amount of liability insurance coverage without comprehensive and collision coverage. It doesn't cost much to raise your liability limits.
In 22 states, only liability benefits are needed to meet the state's minimum coverage requirements. Elsewhere, drivers are also required to buy one of the following — or both — in order to meet their minimum insurance requirements:
- Personal injury protection or medical payments: Covers medical bills for you and your passengers after a car crash, regardless of who is at fault.
- Uninsured motorist coverage: Covers you if another driver causes a crash but does not have liability coverage to pay for your damage or injuries.
What's not included with liability-only car insurance?
Liability-only coverage doesn't include collision and comprehensive coverage. Besides liability, these two coverages generally make up the largest portion of a full coverage car insurance bill.
- Collision coverage pays for damage to your car if you are at fault or no one is at fault.
- Comprehensive coverage pays for damage caused by elements out of your control such as weather, animals or vandalism.
Some car insurance companies won't let you add other types of coverage, like roadside assistance, without full coverage.
Frequently asked questions
What is liability car insurance?
Liability car insurance is coverage that pays for damage to others when you're at fault in an accident. It includes coverage for bodily injuries as well as property damage. Liability coverage is required in nearly every state.
Should I get liability-only car insurance?
Liability-only car insurance only includes liability protection and no other optional coverages like comprehensive or collision. People with older, less expensive cars should consider getting liability-only car insurance instead of full coverage. Full coverage is a worse deal for older cars because your highest possible payout falls faster than the cost of coverage.
What is supplemental liability insurance for car rentals?
Supplemental liability coverage will give you more protection if you cause a car accident. You'll have a higher limit on how much insurance will pay for the property damage and injuries you cause. Car rentals automatically have the legal minimum amount of liability car insurance. That's usually enough to cover a typical accident, but not an expensive accident.
Who has the cheapest liability-only car insurance?
The cheapest widely available liability-only car insurance is from Auto-Owners, at $36 per month. USAA is cheaper but is not available to all drivers. Other affordable options include Erie, State Farm and Farm Bureau.
How do I read liability limits?
Liability limits are often written as three numbers, such as 25/50/25. The first is the number of thousands of dollars of liability coverage per person injured in an accident. The second is the limit, in thousands of dollars, for bodily injury coverage per accident. The third is the limit for property damage you cause in an accident.
What if my car is totaled and I only have liability insurance?
If your car is stolen or totaled in an accident you caused, you'll have to pay to replace your car yourself. If another driver caused the accident, their insurance will pay to repair your car. Liability insurance only pays for damage to other people's cars, not your own.
Methodology
We gathered rates for the cheapest liability insurance for all the insurance companies that offer policies in at least five states. Rates are for a 30-year-old driver who drives a 2015 Honda Civic EX. He has good credit and a clean driving history.
To compare full coverage versus liability-only insurance rates, ValuePenguin collected quotes from 37 insurance companies across the U.S.
Full coverage rates include coverage limits above state minimum levels. They also include uninsured and underinsured motorist bodily injury, comprehensive and collision coverage. Rates for liability-only policies represent the average cost of a policy that meets a state's minimum required auto insurance coverage.
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only. Your own quotes may be different.
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