Best cheap liability-only car insurance of 2024
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“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Updated 4:17 a.m. UTC April 1, 2024
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Erie has the cheapest liability car insurance based on our analysis of rates, customer service complaints, collision repair scores and coverage features of the best car insurance companies. If you don’t live in a state covered by Erie, consider getting a quote from USAA or Auto-Owners. USAA car insurance is available only to military members, veterans and their immediate family members.
Best cheap liability-only car insurance
Why trust our car insurance experts
Our team of insurance experts evaluates hundreds of insurance products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 260 companies analyzed.
- 347 rates reviewed.
- 5 levels of fact-checking.
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Methodology
Our car insurance experts analyzed data on auto insurance companies to determine the best liability car insurance based on average rates, coverage features and consumer complaints.
Each car insurance company was eligible for up to 100 points, based on its performance in the following key categories.
Cost: 70 points. We analyzed rates from Quadrant Information Services for liability-only car insurance.
Coverage features: 10 points. Car insurance policy features can help make coverage more affordable both before and after an accident or covered incident. We evaluated car insurance policies offered by each insurer and awarded points to insurers that offered these valuable options and features:
- Accident forgiveness (5 points).
- Usage-based car insurance program (5 points).
Consumer complaints: 10 points. We collected complaint data from the National Association of Insurance Commissioners, which shows the volume of car insurance consumer complaints against each company. When a consumer lodges a complaint to their state’s department of insurance — often about an insurance company’s claims process, delays, denials or settlements — these complaints are logged and tracked.
SR-22 availability: 5 points. After a major traffic violation, some drivers must provide proof that they have the type and amount of coverage required by their state. Proof of coverage is obtained through an SR-22 filing, but not all insurers offer SR-22s. Insurance companies that offer SR-22s were awarded points.
Accident forgiveness 5: Some insurers offer accident forgiveness, which can prevent your rates from increasing if you’re at fault for an accident. Insurers that offer accident forgiveness received full points.
Who has the cheapest liability car insurance?
USAA and Erie have the cheapest minimum liability car insurance rates, on average. This type of coverage will help you meet state liability insurance requirements. However, it may not fully protect you financially if you’re at fault for an accident with injuries or property damage.
If you want a liability-only car insurance policy with more coverage, such as $50,000 in bodily injury for one person, $100,000 in bodily liability insurance per accident and $50,000 in property damage liability (50/100/50), consider USAA, Travelers and Nationwide. Each has competitive rates for mid-to-high coverage liability-only car insurance.
Compare average liability-only car insurance rates
*USAA car insurance is only available to veterans, military members and their immediate family members.
What is liability-only car insurance?
Liability-only car insurance is typically the most affordable car insurance option, but it comes with limited financial protection. If you’re at fault for an accident, liability car insurance pays others for their damages and injuries, up to your policy limit. Your liability insurance will not pay to repair your own vehicle or cover bodily injuries to you or your passengers after an accident.
Liability car insurance will cover your legal fees if you’re sued because of an accident, but again, only up to your policy limits. Higher liability limits cost more up front in car insurance premiums but could save you a significant amount of money if you cause an accident that results in a lawsuit.
Nearly every state requires you to purchase a minimum amount of liability coverage before you can legally get behind the wheel. A liability-only insurance policy can help you meet that requirement.
How much does liability car insurance cost?
Liability car insurance costs an average of $635 per year, or $58 per month, based on our analysis of rates.
The average cost of car insurance can help you get a general idea of how much a liability-only policy will cost, but it may not be indicative of your exact rates. That’s because car insurance companies look at multiple factors to determine your rate, including:
- Driving history. If you have accidents, speeding tickets or other driving violations on your record, you’ll likely pay more than someone with a clean driving history.
- Experience level. If you’re a new driver with little to no experience behind the wheel, such as a teen driver, insurers see you as a higher risk to insure and will likely charge a higher premium.
- Location. The cost of car insurance varies by state as well as ZIP code, with urban drivers often paying more for coverage than drivers in rural areas or small towns, according to Insurance Information Institute. Other location-based factors that can influence your rates are the number of accidents as well as the cost of medical care, car repairs and litigation.
- Usage rate. Statistically, the more you drive your car, the more likely you are to get in a wreck. Because of this, drivers with a higher average of miles driven typically pay more while those who use their vehicles occasionally or only for short distances pay less.
- Age. Drivers between the ages of 25 and 65 typically have fewer accidents than younger or senior drivers, making them less expensive to insure. Teen drivers and mature drivers often pay higher rates.
- Gender. A report by the Insurance Institute for Highway Safety found that more men die in crashes each year and are more likely to participate in dangerous driving habits such as driving under the influence and not wearing a seatbelt. Because of this, women may pay less for their liability insurance.
- Credit score. Drivers with poor credit often have higher car insurance rates, though not all states allow insurers to factor credit into their rate calculations. The practice is banned in California, Hawaii, Massachusetts and Michigan.
What is covered by liability car insurance?
Liability car insurance includes two types of coverage: bodily injury and property damage.
- Bodily injury liability insurance covers the other party’s accident-related medical expenses and lost wages if they were injured as a result of a car accident you caused. It can also pay for your legal bills if you’re sued after an accident, up to your policy limit.
- Property damage liability insurance covers damages to another driver’s vehicle if you’re at fault for the accident. It can also cover property damage to surrounding areas, such as buildings, houses, fences and trees, up to your policy limit.
If, for instance, you failed to stop at a red light and hit a vehicle, causing injuries to the other driver and their passenger, the bodily injury liability portion of your coverage would cover their medical expenses, such as an ambulance fee, X-rays and follow-up care. The property damage portion of your policy will cover the cost of repairing the other driver’s vehicle as well as other damaged property (not your own), such as a broken fence or damage to a parked vehicle.
What isn’t covered by liability car insurance?
Liability car insurance does not cover medical expenses for you or your passengers. It also won’t cover damage to your vehicle. If you want coverage for either of those, you’d need to purchase additional coverage, such as:
- Medical payments (MedPay) or personal injury protection (PIP). These similar types of coverage will help pay for accident-related medical expenses for you and your passengers, regardless of who is at fault. Depending on where you live, you may be required to purchase MedPay or PIP.
- Collision coverage. This optional car insurance covers damage to your vehicle after a collision, regardless of who is at fault. It can also cover you if you back into a pole or are the victim of a hit-and-run accident.
- Comprehensive coverage. This optional coverage will help you pay for damage resulting from non-collision events, such as flooding, fire, falling objects or car theft. It can also cover you if you hit an animal, like a deer. Collision and comprehensive insurance are often sold together and may be required if you have financed or leased a vehicle.
Who needs liability-only car insurance?
Nearly every driver is required to carry at least a minimum level of liability car insurance. That’s because it’s mandated in almost every state, with the exception of New Hampshire. Virginia drivers can opt out of coverage by paying a set fee each year.
How much liability coverage you need varies by state, but the minimum requirement is generally not enough to adequately protect your assets. Experts recommend buying more coverage than the minimum required, so you don’t need to drain your bank account if you cause an expensive accident.
For instance, if you live in California and purchase a liability policy with $15,000 in bodily injury coverage — the minimum required by the state — but cause an accident that results in $35,000 in medical expenses, you’d be on the hook for the additional $20,000.
Most insurance experts recommend buying a 100/300/100 policy, which includes $100,000 in bodily injury coverage per person, $300,000 in bodily injury liability coverage per accident and $100,000 in property damage liability per accident.
How to find the cheapest liability-only insurance
The best way to find the cheapest liability car insurance is to compare car insurance quotes from multiple insurers. Doing so can help you determine your average cost of coverage and choose the insurer that offers the cheapest car insurance rate for the coverage you need.
You can also lower your rates by looking for car insurance discounts, such as a bundling discount or good driver discount.
Finally, keeping a clean driving record and maintaining a healthy credit score can also help you secure lower rates.
Other types of auto insurance you may need
There are two factors that can determine other types of coverage you may need: state mandates and lender/lessor agreements.
State car insurance requirements
Most states require drivers to carry a minimum amount of liability insurance, but several states also require drivers to carry other types of coverage.
Minimum car insurance requirements by state
Lender car insurance requirements
If you finance or lease your vehicle, you’ll likely need to purchase a full coverage car insurance policy. This typically includes liability insurance, any other state-mandated coverage and collision and comprehensive insurance.
Liability-only insurance vs. full coverage
A liability-only car insurance policy will only cover medical expenses and property damage costs for the other driver, their passengers and any pedestrians involved in an accident for which you are at fault.
A full coverage car insurance policy covers accident-related expenses for the other party as well as you and your passengers.
“Full coverage” is an umbrella term that refers to a group of coverages that includes:
- Liability insurance.
- Any other state-mandated coverages, such as uninsured motorist insurance or PIP/MedPay.
- Collision insurance.
- Comprehensive insurance.
Because comprehensive insurance is included in full coverage, it can also help you cover the cost of non-accident related expenses, such car theft or damage to your vehicle caused by flooding, fire or vandalism.
How much is full coverage car insurance? Best car insurance companies.
Best cheap liability-only car insurance FAQs
Liability limits refer to the total amount of money an insurer will pay out after a claim. For instance, if you have a liability insurance policy with a $25,000 property damage liability limit, the most your insurer will ever pay out for a property damage liability claim is $25,000. If damages exceed that amount, you’ll have to pay out of pocket.
Liability limits are often shown as three digits separated by a forward slash. A 100/300/100 liability car insurance policy includes:
- $100,000 in bodily injury coverage per person.
- $300,000 in bodily injury coverage per accident.
- $100,000 in property damage coverage per accident.
Liability-only car insurance costs substantially less than full coverage because it offers less protection. If you are at fault for an accident and carry only liability insurance, your insurance company will only pay for the bodily injuries and property damages sustained by the other party, up to your policy limits.
Full coverage car insurance includes any types of coverage required in your state as well as collision and comprehensive insurance.
Full coverage may not be the cheapest car insurance policy you can buy, but it does offer financial protection in a variety of situations, regardless of who is at fault. This additional coverage results in higher rates.
If you’re on a tight budget but want to meet your state’s liability car insurance requirements, a liability-only car insurance policy may be a good option.
However, a liability-only car insurance policy won’t be the best option if:
- Your state requires you to purchase additional types of coverage, such as uninsured motorist insurance.
- You financed your vehicle and your lender requires full coverage.
- You leased your vehicle and are required to carry full coverage.
- You don’t think you can afford to cover someone else’s repairs or medical expenses if you cause an accident.
Before you purchase a liability-only car insurance policy, evaluate your state mandates, any lender or lessor requirements and your finances. This can help you determine how much car insurance you need.
Supplemental liability insurance (SLI) is a type of rental car insurance sold by car rental companies. It covers bodily injury and property damage expenses incurred by others if you’re at fault for an accident.
If you have liability insurance for your personal vehicle, it typically extends to a rental car, as long as it’s for personal use. However, it’s always best to check with your insurer to determine exactly what is and isn’t covered. For insurance, your liability insurance policy may cover you if you’re at fault for an accident while driving a rented vehicle, but it may not cover expenses incurred by the rental company, such as “loss of use” while the vehicle is repaired.
Depending on your insurer, you may also need supplemental liability insurance for renting cars in certain countries, such as Mexico.
Liability insurance does not cover stolen vehicles. If you want to cover your vehicle for theft, consider buying comprehensive coverage. This optional car insurance will cover theft as well as other non-collision damages, such as hail, fire, flooding and vandalism.
Not sure what your policy covers? How car insurance works.
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