Cheapest Liability-Only Car Insurance (2024)
State Farm has the cheapest liability-only car insurance for most drivers, at around $50 per month.
Find Cheap Liability-Only Car Insurance in Your Area
Cheap liability car insurance quotes
Who has the cheapest liability-only car insurance?
At $50 per month, State Farm has the cheapest liability-only car insurance among national insurance companies.
State Farm's quotes are $14 per month cheaper than the national average rate of $64 per month. Erie and Auto-Owners are cheaper regional companies with liability rates less than $45 per month.
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Monthly rate$50This analysis used insurance quotes for thousands of ZIP codes across the US. Read our methodology.
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States Available48State Farm currently sells car insurance in every state except Massachusetts and Rhode Island.
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Monthly rate$42This analysis used insurance quotes for thousands of ZIP codes across the US. Read our methodology.
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States Available12Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin and Washington, D.C.
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Monthly rate$43This analysis used insurance quotes for thousands of ZIP codes across the US. Read our methodology.
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States Available26Alabama, Arkansas, Arizona, Colorado, Florida, Georgia, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Michigan, Minnesota, Missouri, North Carolina, North Dakota, Nebraska, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Virginia and Wisconsin.
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Monthly rate$43This analysis used insurance quotes for thousands of ZIP codes across the US. Read our methodology.
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States Available 50
Find Cheap Liability-Only Car Insurance in Your Area
USAA is the cheapest company for liability-only coverage, at just $34 per month. However, only current or former military members and their families can get car insurance from USAA.
Local car insurance companies are often cheaper than national brands. Some major names like Allstate and Farmers can be quite expensive.
Cheapest liability-only car insurance rates
Company | Monthly rate | ||
|---|---|---|---|
| Erie | 4.5 out of 5 | $42 | |
| Auto-Owners | 4.0 out of 5 | $43 | |
| Farm Bureau | 4.5 out of 5 | $46 | |
| State Farm | 4.5 out of 5 | $50 | |
| Country Financial | 3.0 out of 5 | $52 | |
*USAA is only available to current and former military members and their families.
The cheapest liability insurance for you may be different based on factors like your accident history, credit score and location. That's why it's important to compare quotes from multiple companies to find the cheapest car insurance for you.
- Collected thousands of car insurance quotes from every ZIP code in the country that meet minimum coverage requirements
- Found the cheapest liability-only companies by comparing average rates
How much is liability-only car insurance in my state?
The cost of liability-only auto insurance varies by up to $125 per month based on where you live.
This is because each state has its own insurance requirements. And states have different types of risks, such as hurricanes or crime.
South Dakota has the cheapest rate for minimum coverage, at $29 per month on average. Michigan's average rate of $154 per month is the most expensive.
How much is liability car insurance near me?
How much cheaper is liability-only coverage?
Liability car insurance costs about two-thirds less than full coverage, on average.
The main reason liability-only car insurance is cheaper than full coverage insurance is because it doesn't pay for damage to your own car after a crash, nor for other things like vandalism or hail. In other words, it lacks collision and comprehensive coverage.
Cheapest insurance companies
Find Cheap Liability-Only Car Insurance in Your Area
Monthly cost of liability-only vs. full coverage car insurance
Liability only | Full coverage | Difference | |
|---|---|---|---|
| Erie | $42 | $107 | $65 |
| Auto-Owners | $43 | $141 | $98 |
| Farm Bureau | $46 | $162 | $116 |
| State Farm | $50 | $125 | $75 |
| Country Financial | $52 | $133 | $81 |
*USAA is only available to military members, veterans and their families
Why is liability-only car insurance so much cheaper?
Liability-only insurance is typically cheaper than a full coverage policy because it offers less protection.
If you cause an accident, a liability-only policy pays the other person's medical and car repair bills, but not yours.
Plus, full coverage usually has higher coverage limits to protect you in more expensive accidents.
Full coverage insurance generally includes:
- More liability protection than required by your state
- Collision and comprehensive coverage
- Any other coverages required by law, such as personal injury protection (PIP)
Comprehensive and collision coverage pay for damage to your car if:
- You cause an accident
- Weather, like hail or flooding, damages your car
- You hit a deer or another animal
- Someone steals or vandalizes your car
- You're the victim of a hit-and-run (except when your state requires uninsured motorist coverage)
Dropping collision and comprehensive coverage can lower your car insurance bill. However, you'll pay much more for repairs after an accident because you'll have to fix your car yourself.
Should I get liability-only car insurance?
Liability-only coverage is usually only a good idea if your car is worth less than $5,000 or is more than eight years old.
With an older car, collision and comprehensive coverage may cost more in the long run than your car is worth. That's because the most that the insurance company will pay after a crash is your car's actual cash value (ACV).
Example
- 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 possible 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 after an accident.
Full coverage insurance becomes a worse deal the longer you have your vehicle, or the older the vehicle is.
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. It can help you avoid unexpected bills after an accident.
When to consider liability-only coverage
- Your car is older or not valuable.
- You have enough savings to replace your car.
- You don't have a car loan or lease.
- You don't have a daily commute.
- You don't often drive at night.
- You are older than 25.
- You park your car indoors at night.
Even if you don't need to add comprehensive and collision to your policy, you should still consider getting higher liability limits than your state requires.
The amount of liability insurance required by law typically isn't enough to cover the cost of a serious accident. Raising your liability limits typically doesn't cost very much. And it could save you a lot of money if you cause a major accident.
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 the medical bills of anyone injured in an accident you cause.
- Property damage liability: Pays for damage to other cars and property caused by an accident that's your fault.
You can get more liability insurance coverage without comprehensive and collision coverage. It doesn't cost much to raise your liability limits.
In 22 states, you only need liability insurance to meet minimum coverage requirements. Elsewhere, drivers must also buy one of the following — or both — in order to meet the minimum insurance requirements:
- Personal injury protection or medical payments: Covers medical bills for you and your passengers after a crash, regardless of who is at fault.
- Uninsured motorist coverage: Pays for your injuries or damage to your car if you're in an accident caused by a driver who doesn't have insurance.
What's not included with liability-only car insurance?
Liability-only coverage doesn't include collision and comprehensive coverage, which pay to fix your own car after a crash, or if it's stolen. 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 cause a crash 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
How much is liability insurance?
Liability-only car insurance costs $64 per month, on average. However, rates vary depending on where you live, your driving history and your insurance company.
What is the cheapest liability-only car insurance company?
State Farm is the cheapest widely available liability-only car insurance company, at $50 per month. Smaller regional companies, like Erie and Auto-Owners, tend to have cheaper rates. USAA is also an excellent option for liability-only insurance, but is not available to all drivers.
What is liability car insurance?
Liability car insurance pays for property damage or injuries to others when you cause an accident. Nearly every state requires liability insurance.
Methodology
To find the cheapest car liability insurance, ValuePenguin gathered rates across tens of thousands of ZIP codes in all 50 states. Rates are included for all the insurance companies with data available 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 liability limits above state minimum levels. They also include uninsured and underinsured motorist bodily injury, comprehensive and collision coverage.
- Bodily injury liability: $50,000 per person; $100,000 per accident
- Property damage liability: $25,000 per accident
- Uninsured and underinsured motorist coverage: $50,000 per person; $100,000 per accident
- Personal injury protection: Minimum required by state
- Comprehensive and collision coverage: $500 deductible
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurance company filings and should be used for comparative purposes only. Your own quotes may be different.
About the Author
Senior Writer
Lindsay Bishop is a Senior Writer at ValuePenguin, where she educates readers about home, auto, renters, flood and motorcycle insurance.
Lindsay began her career in the insurance and financial industry in 2010. She was a licensed auto, home, life and health insurance agent and held Series 6 and 63 financial licenses.
After a hiatus from the financial sector, Lindsay returned to the industry as a content writer for ValuePenguin in 2021. She enjoys having the opportunity to help readers make smart decisions about their insurance so they can be prepared for anything life throws their way.
When Lindsay isn't writing about insurance, you can find her spending time with family, enjoying the outdoors on Sunday long runs or riding her Peloton.
How insurance helped Lindsay
As a homeowner for 15 years located in South Carolina, Lindsay has plenty of experience navigating the coastal insurance market and managing the claims process. That includes successfully negotiating a full roof replacement claim.
Expertise
- Home insurance
- Car insurance
- Flood insurance
- Renters insurance
- Motorcycle insurance
Referenced by
- CNBC
- Yahoo Finance
- Miami Herald
Education
- BS/BA Economics, University of Nevada Las Vegas
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
