USAA has the cheapest liability-only auto insurance with average rates of $22 per month, followed by Erie Insurance and Geico. Because USAA is exclusively for military and veterans, however, non-
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Cheapest Liability-Only Auto Insurance: Best Companies and Coverage Guide
Liability-only auto insurance is generally the most affordable type of car insurance because it covers the injuries and property damage you cause to other people in an accident. In most states, drivers are required to carry at least a minimum amount of liability coverage to legally operate a vehicle.
Among the companies reviewed, USAA and Erie offer some of the lowest average liability-only rates, while Geico, AAA, State Farm, Auto-Owners, Travelers, Progressive, and Nationwide also provide competitive options.
However, the cheapest company for one driver may not be the cheapest for another. Your location, driving record, age, vehicle, coverage limits, and available discounts can all affect your premium.
If you are shopping for affordable liability insurance, comparing quotes from several insurers is one of the best ways to find a competitive rate.
What You Should Know
- USAA and Erie offer some of the lowest average liability-only rates.
- Geico is another affordable option with a wide range of discounts.
- Liability insurance is required in most states.
- Bodily injury liability pays for injuries you cause to other people.
- Property damage liability pays for damage you cause to another person’s property.
- Liability-only insurance generally does not cover damage to your own vehicle.
- State minimum requirements may not provide enough protection after a serious accident.
- Your driving history, age, location, vehicle, and coverage limits affect your rates.
- Comparing multiple companies can help you find cheaper liability insurance.
Cheapest Liability-Only Auto Insurance Companies
Based on the rates provided, the following companies offer some of the most competitive liability-only insurance premiums.
| Company | Rank | Average Monthly Rate | UBI Discount | Best For |
|---|---|---|---|---|
| USAA | #1 | $22 | Up to 30% | Military Members |
| Erie | #2 | $22 | Up to 20% | Claims Experience |
| Geico | #3 | $30 | Up to 25% | Discounts |
| AAA | #4 | $32 | Up to 30% | Roadside Assistance |
| State Farm | #5 | $33 | Up to 30% | Local Agents |
| Auto-Owners | #6 | $33 | Up to 30% | Coverage Add-Ons |
| Travelers | #7 | $37 | Up to 30% | IntelliDrive |
| Progressive | #8 | $39 | Up to 30% | Budgeting Tools |
| Nationwide | #9 | $44 | Up to 40% | Vanishing Deductible |
Note: These are sample average rates and should not be treated as guaranteed quotes. Actual premiums vary by driver and location.
Compare Liability-Only Auto Insurance Rates
1. USAA: Best Overall for Eligible Drivers
USAA has some of the cheapest liability-only insurance rates among the companies reviewed. It also has a strong reputation for customer service, financial stability, and coverage options.
However, USAA is not available to everyone. Eligibility is generally limited to military members, veterans, and eligible family members.
Pros
- Affordable liability rates: USAA consistently offers competitive rates for eligible drivers.
- Strong customer service: USAA receives positive customer feedback for its service.
- Financial stability: The company has a long history and strong financial position.
- Multiple coverage options: Drivers can add coverage beyond basic liability insurance.
Cons
- Limited eligibility: Coverage is primarily available to military members, veterans, and qualifying family members.
- Limited physical locations: Customers looking for face-to-face service may have fewer local branch options.
2. Erie: Best for Claims
Erie offers competitive liability-only rates and provides a variety of coverage options. The company is also known for its customer service and claims experience.
Pros
- Competitive rates: Erie offers affordable liability coverage in the states it serves.
- Good customer service: Customers generally report positive service experiences.
- Multiple coverage options: Policyholders can add additional protection when needed.
- Discount opportunities: Eligible drivers may qualify for several discounts.
Cons
- Limited availability: Erie does not operate in every state.
- Agent-based sales: Policies are generally purchased through an insurance agent rather than entirely online.
3. Geico: Best for Discounts
Geico is one of the most widely available options for affordable liability-only insurance. Its large selection of discounts and easy-to-use digital tools make it attractive to drivers looking to lower their premiums.
Pros
- Many discounts: Drivers may qualify for discounts based on driving history, vehicle safety features, student status, and other factors.
- Easy online management: Geico’s website and mobile app make it convenient to manage a policy.
- Wide availability: Geico serves drivers across much of the country.
- Competitive rates: Many drivers can find affordable liability coverage through Geico.
Cons
- Mixed claims experiences: Customer satisfaction with claims handling can vary.
- Limited local-agent experience: Drivers who prefer face-to-face service may have fewer options.
4. AAA: Best for Roadside Assistance
AAA is particularly attractive to drivers who value roadside assistance. Depending on the region, AAA insurance may also offer competitive liability-only rates and several additional benefits.
Pros
- Excellent roadside assistance: AAA is widely recognized for its roadside assistance services.
- Multiple discounts: Members may qualify for various insurance and membership-related discounts.
- Additional member benefits: AAA membership can provide travel and other consumer benefits.
- Established organization: AAA has a long history of serving drivers.
Cons
- Membership costs: AAA insurance generally requires membership, adding another expense.
- Availability varies: Insurance products and pricing can differ by region.
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5. State Farm: Best for Local Agents
State Farm is a strong choice for drivers who prefer working with a local insurance agent. Its extensive agent network allows customers to receive personalized assistance when choosing or managing coverage.
Pros
- Large agent network: Drivers can often find a nearby State Farm agent.
- Personalized service: Local agents can help customers understand coverage options.
- Multiple discounts: State Farm offers several ways for eligible drivers to reduce premiums.
- Financial strength: It is one of the largest established auto insurers.
Cons
- Rates vary by driver: State Farm may not be the cheapest option for every demographic.
- Limited add-ons in some areas: Certain optional coverages may not be available everywhere.
State Farm Auto Insurance Review
6. Auto-Owners: Best for Coverage Add-Ons
Auto-Owners provides liability insurance along with several additional coverage options. Its flexible policies can be useful for drivers who want to customize their protection.
Pros
- Multiple coverage options: Drivers can choose from various additional protections.
- Local agents: Auto-Owners works with agents who can provide personalized assistance.
- Flexible policies: Coverage limits and deductibles can often be customized.
- Competitive rates: It can be an affordable choice for eligible drivers.
Cons
- Limited availability: Auto-Owners is not available in every state.
- Mixed claims feedback: Some customers report concerns with claims experiences.
Auto-Owners Auto Insurance Review
7. Travelers: Best for IntelliDrive
Travelers offers competitive liability insurance and a usage-based program called IntelliDrive. Drivers who demonstrate safe driving habits may be able to save through the program.
Pros
- IntelliDrive program: Safe drivers may qualify for savings based on driving behavior.
- Strong financial stability: Travelers is an established national insurer.
- Multiple coverage options: Customers can add additional protections to their policies.
- Discount opportunities: Several discounts may be available to eligible drivers.
Cons
- Mixed customer reviews: Customer experiences with claims and service can vary.
- Rates vary for high-risk drivers: Travelers may not be the cheapest option after serious driving violations.
8. Progressive: Best for Budgeting Tools
Progressive offers several tools designed to help drivers find coverage that fits their budget. Its Name Your Price tool allows customers to start with a target premium and explore available coverage options.
Pros
- Name Your Price tool: Helps drivers explore coverage based on their budget.
- Easy policy management: Customers can manage policies online or through the mobile app.
- Multiple discounts: Progressive offers several opportunities to reduce premiums.
- Wide availability: Coverage is available to drivers in most states.
Cons
- Mixed customer reviews: Customer experiences with claims and service vary.
- Snapshot considerations: Usage-based insurance can affect rates depending on driving behavior.
Progressive Auto Insurance Review
9. Nationwide: Best for Vanishing Deductible
Nationwide offers competitive insurance along with features such as its Vanishing Deductible program. Safe drivers may be able to reduce their deductible over time by maintaining a clean driving record.
Pros
- Vanishing Deductible: Eligible drivers can reduce their deductible for maintaining a clean driving record.
- Strong financial stability: Nationwide is an established insurance provider.
- Flexible coverage: Drivers can customize coverage based on their needs.
- Discount opportunities: Multiple discounts may be available.
Cons
- Limited availability: Nationwide auto insurance is not available in every state.
- Rates vary: High-risk drivers may find cheaper rates with another insurer.
Nationwide Auto Insurance Review
How Much Does Liability-Only Auto Insurance Cost?
Liability-only insurance is generally less expensive than full coverage because it does not pay for damage to your own vehicle.
The sample rates provided in this comparison show an average liability-only premium of approximately $45 per month, although some insurers offer rates considerably lower than that for certain drivers.
Your actual premium can be affected by:
- Age
- Driving record
- Location
- Vehicle make and model
- Annual mileage
- Credit history where permitted
- Coverage limits
- Insurance company
- Available discounts
A clean driving record can help you qualify for lower rates, while accidents, speeding tickets, and DUI convictions can significantly increase premiums.
Compare Rates From Multiple Insurance Companies
How Driving History Affects Liability Insurance Rates
Your driving record is one of the most important factors insurers consider when calculating your premium.
Drivers with a clean record generally pay less than drivers with serious violations or multiple claims.
Factors that can increase your premium include:
- Speeding tickets
- At-fault accidents
- DUI or DWI convictions
- Reckless driving violations
- Multiple insurance claims
- Other serious traffic violations
If you have a poor driving record, comparing quotes is particularly important because insurers can price high-risk drivers very differently.
Best Auto Insurance Companies for High-Risk Drivers
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What Does Liability Auto Insurance Cover?
Liability insurance protects you financially when you cause an accident that injures another person or damages someone else’s property.
Liability coverage generally consists of two primary components.
Bodily Injury Liability
Bodily injury liability pays for certain expenses associated with injuries you cause to another person in an accident for which you are responsible.
Depending on the circumstances and policy, covered expenses may include:
- Medical bills
- Lost wages
- Rehabilitation costs
- Funeral expenses
- Legal expenses associated with covered claims
Learn More About Bodily Injury Liability Insurance
Property Damage Liability
Property damage liability helps pay for damage you cause to another person’s property.
For example, if you cause an accident and damage another vehicle, fence, building, or other covered property, your property damage liability coverage may help pay for the resulting costs.
Compare Property Damage Liability Insurance Companies
What Does Liability-Only Insurance Not Cover?
Liability-only insurance is designed primarily to protect other parties when you cause an accident. It does not provide comprehensive protection for you or your vehicle.
Generally, liability-only insurance does not cover:
Damage to Your Vehicle
If you cause an accident and your vehicle is damaged, liability insurance typically will not pay to repair or replace your car.
Your Own Medical Expenses
Liability coverage generally does not pay for your own medical expenses after an accident you caused.
Depending on your state and policy, personal injury protection (PIP) or medical payments coverage (MedPay) may help with these expenses.
Costs Above Your Policy Limits
If an accident results in damages that exceed your liability limits, you may be responsible for the remaining amount.
For example, if you have $25,000 in property damage liability coverage but cause $40,000 in covered property damage, you could potentially be responsible for the remaining $15,000.
This is one reason choosing adequate liability limits is important.
Liability-Only vs. Full Coverage Auto Insurance
The biggest difference between liability-only and full coverage is protection for your own vehicle.
| Feature | Liability-Only | Full Coverage |
|---|---|---|
| Bodily injury liability | Yes | Yes |
| Property damage liability | Yes | Yes |
| Collision coverage | No | Usually |
| Comprehensive coverage | No | Usually |
| Damage to your vehicle after an at-fault accident | No | Yes, subject to deductible |
| Theft protection | No | Yes, through comprehensive |
| Weather damage | No | Yes, through comprehensive |
| Usually cheaper | Yes | No |
| Required by most states | Yes | No |
Liability-Only Insurance: Pros
- Lower monthly premiums
- Meets state minimum insurance requirements in most states
- Good option for older, low-value vehicles
- Can make sense for drivers who can afford to replace their vehicle themselves
Liability-Only Insurance: Cons
- Does not cover damage to your vehicle
- Does not generally cover your medical expenses after an at-fault accident
- Low state minimums may leave you financially exposed
- You may have significant out-of-pocket expenses after an accident
Full Coverage: Pros
- Provides broader protection
- Covers many types of vehicle damage
- Helps protect against theft and weather-related losses
- Often required by lenders for financed or leased vehicles
Full Coverage: Cons
- Higher premiums
- Requires deductibles for collision and comprehensive claims
- May not be cost-effective for very old or low-value vehicles
Learn More About Full Coverage Auto Insurance
Minimum Liability Insurance Requirements
Most states require drivers to carry minimum amounts of liability insurance. However, the required limits vary significantly from state to state.
Your state’s minimum requirement typically includes:
- Bodily injury liability per person
- Bodily injury liability per accident
- Property damage liability
Before purchasing a policy, check your state’s requirements to make sure you meet the legal minimum.
However, choosing only the minimum amount may not always provide enough financial protection.
Why State Minimums May Not Be Enough
Imagine your state requires only $5,000 in property damage liability and you cause an accident that results in $20,000 in property damage.
Your insurance could pay up to your policy limit, but you could potentially be responsible for the remaining $15,000.
For this reason, many drivers choose liability limits above the legal minimum.
How to Choose the Right Liability Coverage
When selecting liability insurance, don’t focus only on the lowest monthly premium.
Consider:
1. Your State’s Requirements
Make sure your policy meets or exceeds the required minimum limits.
2. Your Financial Situation
Consider how much you could realistically afford to pay out of pocket after a serious accident.
3. Your Assets
Drivers with significant savings, property, or other assets may have more to lose from a large liability claim.
4. Your Vehicle
If your vehicle is older and has a relatively low market value, liability-only insurance may make more financial sense than paying for comprehensive and collision coverage.
5. Your Driving History
High-risk drivers should compare several companies because rates can vary significantly after tickets, accidents, or DUI convictions.
How to Save Money on Liability Car Insurance
There are several ways to potentially reduce your liability insurance premium without sacrificing necessary protection.
Compare Multiple Quotes
Rates can differ significantly between insurers for the same driver. Comparing quotes is one of the most effective ways to find a competitive premium.
Look for Discounts
Ask insurers about discounts for:
- Safe driving
- Multiple vehicles
- Bundling home and auto insurance
- Good students
- Defensive driving courses
- Vehicle safety features
- Anti-theft systems
- Low mileage
- Usage-based insurance programs
Explore Auto Insurance Discounts
Maintain a Clean Driving Record
Avoiding tickets and at-fault accidents can help keep your insurance costs lower over time.
Review Your Policy Regularly
Your insurance needs can change as your vehicle, driving habits, finances, and household change. Review your coverage periodically to make sure it still fits your needs.
Is Liability-Only Auto Insurance Right for You?
Liability-only insurance can be a practical choice if you want affordable coverage and your main priority is meeting legal insurance requirements.
It may be worth considering if:
- You own an older vehicle.
- Your vehicle has a low market value.
- You could afford to replace your vehicle yourself.
- You want the lowest possible premium.
- You don’t have a lender requiring comprehensive and collision coverage.
However, liability-only insurance may not be appropriate if you have a newer or expensive vehicle, have an auto loan or lease, or would struggle financially to replace your vehicle after an accident.
Final Thoughts
Liability-only auto insurance is usually one of the most affordable ways to maintain legally required car insurance. USAA, Erie, and Geico are among the companies offering competitive liability-only rates in the sample comparison, while AAA, State Farm, Auto-Owners, Travelers, Progressive, and Nationwide are also worth considering.
The cheapest insurer ultimately depends on your individual circumstances. A company that offers the lowest rate to one driver may charge another driver significantly more.
Before choosing a policy, compare quotes, review coverage limits, look for discounts, and make sure you have enough liability protection to reduce the risk of significant out-of-pocket expenses after an accident.
Frequently Asked Questions
What is liability-only car insurance?
Liability-only car insurance covers certain injuries and property damage you cause to other people in an accident. It generally does not cover damage to your own vehicle.
What is the cheapest liability car insurance company?
Based on the sample rates in this comparison, USAA and Erie have the lowest average monthly rates at $22, followed by Geico at $30. Actual rates vary by driver and location.
Is liability insurance required?
Most states require drivers to carry at least a minimum amount of liability insurance. Requirements vary by state.
Does liability insurance cover my car?
No. Liability insurance generally does not pay to repair or replace your vehicle after an accident you cause. Collision coverage is designed for many collision-related vehicle repairs.
Learn About Collision Insurance
Does liability insurance cover theft?
No. Liability-only insurance generally does not cover theft. Comprehensive coverage can help protect against vehicle theft.
Learn About Comprehensive Auto Insurance
Is liability-only insurance cheaper than full coverage?
Yes. Liability-only insurance is generally cheaper because it does not include comprehensive and collision coverage for your own vehicle.
Should I buy more than my state’s minimum liability coverage?
In many cases, carrying higher limits can provide better financial protection. State minimums may not be enough to cover all damages after a serious accident.
Can I get liability insurance after an accident or ticket?
Yes, although your rates may be higher. Insurers evaluate driving history differently, so comparing multiple quotes can help you find a better option.
How can I find the cheapest liability insurance?
The best approach is to compare quotes from multiple insurers and check which discounts you qualify for. Your final rate will depend on your individual driver profile and location.