Insurance
Cheapest Liability-Only Car Insurance Companies (2024) – Reviews and Rates
Cheapest Liability-Only Car Insurance (2024): A Comprehensive Guide
Are you looking for affordable car insurance options? Liability-only car insurance may be the solution. In this article, we’ll explore the cheapest liability-only car insurance providers, factors affecting rates, and expert tips to save money.
Liability insurance costs an average $64 per month nationwide. But you can find cheap liability insurance for around $43 per month.
Liability-only insurance is the cheapest coverage for an older car. But it only includes the minimum coverage required by your state. It won’t cover damage to your car after a crash.
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. 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.
How to find the best cheap liability auto insurance
The best way to find affordable liability-only car insurance is to compare liability quotes from multiple insurance companies.
The cheapest liability insurance for you may be different based on factors like your accident history, credit score and location.
And make sure you compare quotes with the same level of coverage. The cheapest insurance companies for liability-only coverage don’t always have the cheapest full coverage policies.
What’s the cheapest liability-only car insurance near me?
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.
Top 5 Cheapest Liability-Only Car Insurance Companies (2024)
1. Geico: $28/month (average annual premium: $336)
2. Progressive: $33/month (average annual premium: $396)
3. State Farm: $35/month (average annual premium: $420)
4. Esurance: $37/month (average annual premium: $444)
5. USAA: $39/month (average annual premium: $468)
Factors Affecting Liability-Only Car Insurance Rates
1. Age
2. Location
3. Driving history
4. Vehicle type
5. Coverage limits
6. Deductible
7. Credit score
Expert Tips to Save Money on Liability-Only Car Insurance
1. Compare quotes from multiple insurers
2. Take advantage of discounts (e.g., good student, multi-car)
3. Opt for a higher deductible
4. Choose lower coverage limits
5. Consider usage-based insurance
6. Improve your credit score
7. Drop unnecessary coverage
Monthly cost of liability-only vs. full coverage car insurance
| Liability only | Full coverage | Difference | |
|---|---|---|---|
| Erie | $42 | $107 | $65 |
| Auto-Owners | $43 | $141 | $98 |
| Mercury | $43 | $133 | $90 |
| Farm Bureau | $46 | $162 | $116 |
| State Farm | $50 | $125 | $75 |
| Country Financial | $52 | $133 | $81 |
| American Family | $61 | $160 | $99 |
| Geico | $61 | $162 | $101 |
| Shelter | $64 | $161 | $97 |
| Progressive | $66 | $170 | $104 |
| Travelers | $71 | $164 | $93 |
| Nationwide | $82 | $189 | $107 |
| Allstate | $96 | $217 | $121 |
| Farmers | $99 | $258 | $159 |
| USAA* | $34 | $101 | $67 |
*USAA is only available to military members, veterans and their families.
Why is liability-only car insurance so much cheaper?
Full coverage is typically more expensive than a liability-only policy because it offers more protection.
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:
- 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)
In comparison, liability-only insurance doesn’t pay for damage to your car. You’ll only be reimbursed for repairs if another driver damages your car.
Is cheap liability-only car insurance worth it?
Liability-only coverage is usually 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 get 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.
- You park your car indoors at night.
- You don’t have a car loan or lease.
Frequently Asked Questions (FAQs)
What is liability-only car insurance?
Liability-only insurance covers damages to others in an accident, not your vehicle.
How much does liability-only car insurance cost?
Average annual premiums range from $336 to $1,000.
What are the minimum liability insurance requirements?
Vary by state, but typically 25/50/25 (bodily injury, property damage).
Do I need comprehensive coverage with liability-only insurance?
No, comprehensive coverage is optional.
Can I add roadside assistance to liability-only insurance?
Yes, through most insurers.
How do I file a claim with liability-only insurance?
Contact your insurer’s claims department.
Can I cancel my liability-only policy at any time?
Yes, but penalties may apply.
What is the difference between liability-only and full coverage insurance?
Liability-only covers damages to others, full coverage includes comprehensive and collision.
Do liability-only insurance rates vary by state?
Yes, rates differ significantly by state.
Can I get liability-only insurance with a bad driving record?
Yes, but rates may be higher.
What is the cheapest state for liability-only car insurance?
Iowa.
Can I get liability-only insurance without a driver’s license?
Yes, but rates may be higher.
How do I report changes to my liability-only policy?
Contact your insurer or agent.
Can I add additional drivers to my liability-only policy?
Yes.
What is the average deductible for liability-only insurance?
$500.
Can I get liability-only insurance with a salvaged title?
Yes, but rates may be higher.
Do liability-only insurance rates increase with age?
Yes.
Can I get liability-only insurance without a credit check?
Yes, through some insurers.
What is the difference between bodily injury and property damage liability?
Bodily injury covers medical expenses, property damage covers vehicle repairs.
Can I get liability-only insurance for multiple vehicles?
Yes.
Conclusion:
Finding the cheapest liability-only car insurance requires careful consideration of various factors, including your location, driving history, vehicle type, and coverage limits. By comparing quotes from multiple insurers, taking advantage of discounts, and optimizing your policy, you can save money on your premiums.
Thank you for reading.
