Cheapest Liability-Only Auto Insurance in 2024 (Save With These 9 Companies!)

USAA has the cheapest liability auto insurance, with Erie Insurance and Geico coming in close behind with affordable liability insurance.  All drivers must carry at least liability auto insurance to drive, as it is one of the types of auto insurance that is required by state laws.

Because every company offers liability insurance, there are plenty of affordable options to pick from. To see which company is right for you, take a look below.

Our Top 9 Company Picks: Cheapest Liability-Only Auto Insurance

Read on to learn more about the cheap liability car insurance coverage companies, what liability insurance covers, and more. If you want to shop for cheap basic liability auto insurance right away, use our tool to compare rates. 

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#1 – USAA: Top Pick Overall

Pros

• Great customer service: USAA has great customer service ratings from customers, which you can learn more about in our USAA review.
• Strong financial stability: USAA’s financial stability ratings are high as a well-established auto insurer.
• Good coverage options: The company offers a good selection of coverages beyond liability-only insurance for drivers to choose from.

Cons

• Eligibility is limited: Only military members, veterans, and their families can qualify for USAA coverage.
• Locations are limited: With only a few physical branch locations, customers may not be able to get in-person assistance.

#2 – Erie: Best for Filing Claims

Pros

• Good customer service: Erie has great ratings from customers for its customer service. You can learn more about Erie’s ratings in our Erie review.
• Multiple coverage options: Erie offers a range of coverage beyond liability insurance, so customers can add as much or as little coverage as they wish.
• Discount availability: Erie has some great discounts that customers can use to reduce liability rates.

Cons

• Limited availability: Erie Insurance is not available in every state.
• Agent-only purchases: Erie Insurance only sells through agents, so you won’t be able to buy coverage quickly online.

#3 – Geico: Best for Many Discounts

Pros

• Variety of discounts: There is a great selection of Geico discounts to choose from, from usage-based discounts to good student discounts.
• Easy policy management: Geico’s website and app are easy to use to view rates, add/drop drivers, and much more.
• Good coverage selection: Geico has a good array of coverages for drivers (learn more: Geico Review).

Cons

• Mixed claims ratings: Geico has some negative reviews from customers about its claims processing.
• Limited in-person agents: Geico relies mostly on online or phone communication.

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#4 – AAA: Best for Roadside Assistance

Pros

• Great roadside assistance: AAA is well-known for its roadside assistance, which you can learn more about in our AAA review.
• Multiple discounts: AAA discounts apply to more than just auto insurance. Policyholders can also get travel discounts, shopping discounts, and more.
• Good BBB rating: AAA has an A+ rating from BBB, indicating most customers are satisfied with AAA and the company has ethical business practices.

Cons

• Membership fees: You need to be an AAA member to purchase auto insurance, which means you’ll have to pay a small yearly AAA fee in addition to auto insurance rates.
• Coverage availability varies: AAA auto insurance coverage availability may vary from region to region.

#5 – State Farm: Best for Agency Network

Pros

• Agency network: State Farm has a vast network of local agents, making it easy to get personalized, in-person help. Learn more in our State Farm auto insurance review.
• Strong financial stability: State Farm is financially stable as a well-established company.
• Various discounts: State Farm offers usage-based discounts, bundling discounts, and more.

Cons

• Higher rates for certain demographics: Drivers with poor credit may not get the cheapest rates at State Farm.
• Fewer add-on coverages: State Farm doesn’t have gap insurance.

#6 – Auto-Owners: Best for Add-Ons

Pros

• Various add-on coverages: Auto-Owners has a good selection of coverages to choose from, which you can learn more about in our Auto-Owners review.
• Local agents: Auto-Owners has a decent array of local agents in the regions it services.
• Flexible coverages: Auto-Owners coverage options and deductible options make it easy for customers to customize coverage.

Cons

• Limited availability: Auto-Owners is not available in every state.
• Negative claim reviews: Auto-Owners has some negative reviews from customers about its claims processing.

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#7 – Travelers: Best for IntelliDrive Program

Pros

• IntelliDrive: Good drivers can save a significant amount with Travelers’ program (learn more in our Travelers IntelliDrive app review).
• Strong financial stability: Travelers is a well-established company with strong financial stability in the market.
• Multiple coverages: Drivers who want to carry a few add-on coverages have plenty of options at Travelers.

Cons

• Mixed customer reviews: Some customers had negative reviews about Travelers’ customer service and claims.
• Higher rates for some demographics: Travelers is not always the cheapest option for high-risk drivers. Learn more in our Travelers review.

#8 – Progressive: Best for Budgeting Tools

Pros

• Budgeting tool: Progressive has a Name Your Price tool, where customers can see how much coverage they can get on their budget.
• Easy policy management: Progressive’s website and app are easy to use and well-rated.
• Various discounts: Progressive offers multiple discounts to help reduce rates.

Cons

• Mixed customer reviews: Progressive has some negative customer reviews regarding customer service and claims. Learn more in our Progressive review.
• Snapshot program can raise rates: Progressive’s UBI program may result in rate increases for poor drivers (learn more: Progessive Snapshot review).

#9 – Nationwide: Best for Vanishing Deductible

Pros

• Vanishing deductible: Good drivers will see decreases in their deductibles over time for each policy period they stay accident and ticket-free.
• Strong financial stability: Nationwide has great ratings for financial stability. Learn more in our Nationwide review.
• Coverage options: Nationwide’s deductible and coverage options make it easy to customize coverage.

Cons

• Limited availability: Nationwide doesn’t offer auto insurance in a few states.
• Higher rates for some demographics: Nationwide usually isn’t the cheapest option for high-risk drivers.

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Cheapest Companies for Liability Auto Insurance Coverage

Liability-only car insurance costs $45 monthly on average, but you can find rates as low as $30/mo from the top companies. Ultimately, liability insurance costs depend on your driving record, vehicle, insurance company, location, and more. 

Check out the table below to compare liability car insurance rates from the top companies by different driving records:

A ticket, DUI, or at-fault accident will raise liability insurance rates significantly. Learn more about the best auto insurance companies for high-risk drivers.

The best way to find the cheapest rates is by shopping around and comparing auto insurance rates from different insurance companies in your area.

What Liability Auto Insurance Covers

So, what does liability only auto insurance cover? A liability insurance policy protects you if you cause an accident that injures others or damages their property. 

Liability insurance consists of two parts:

• Bodily injury liability: Bodily injury liability auto insurance pays for damages resulting from injuries to others if you cause an accident. Some common examples of injury damages include medical bills, lost wages, and funeral costs.
• Property damage liability coverage: Property damage liability coverage pays for vehicle and property damages if you cause an accident. Find the best property damage liability auto insurance companies here.

Liability insurance coverage usually covers you if you get sued after an accident for damages. However, liability coverage may not pay for an attorney or court fees if you failed to report the accident or if there were serious injuries.

What Liability Car Insurance Doesn’t Cover 

Liability insurance pays for others’ bills after an accident you cause, meaning there are several things it won’t cover regarding personal expenses. See what liability insurance won’t pay for below:

• Costs exceeding your policy limit: If paying for other parties’ injuries and property damages exceeds your policy limits, you’ll have to pay the rest out of pocket.
• Your property damages: Liability insurance won’t pay for damages to your vehicle or property in an accident you caused.
• Your medical bills. Liability insurance won’t pay for your medical bills in an accident you caused.

Since liability insurance only pays for other drivers’ damages and injuries, you may consider the following coverages to ensure you’re fully protected. 

• Collision: Collision auto insurance pays for repairs to your vehicle if you hit another vehicle or object, such as a fence post.
• Comprehensive: Comprehensive auto insurance pays for repairs to your vehicle if you hit an animal or your car gets damaged by weather, falling objects, vandalism, or theft.
• Medical coverage: Personal injury protection and medical payments coverages pay for you and your passenger’s medical bills if you get in an accident, regardless of fault.

It’s generally best to carry a full coverage auto insurance policy, including liability, collision, and comprehensive coverages. A full coverage policy ensures you don’t incur expensive bills after an accident. So, it’s critical to understand the difference between liability car insurance vs. full coverage.

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Minimum Liability Auto Insurance Requirements

In most states, you must carry the required liability insurance amounts for property damage and bodily injury liability. Determine your state’s liability requirements to know how much liability insurance you need. You can contact the Department of Motor Vehicles or speak to an insurance company in your area to learn the requirements.

Once you know the minimum amount, consider how much you can pay out of pocket if you cause an accident. While it may seem convenient that your state’s minimum requirements are low and you won’t have to pay much for coverage, it could backfire if you’re in an accident exceeding your policy’s limits.

For example, suppose your state only requires you to carry $5,000 in property damage liability. If you damage more than $5,000 worth of someone’s property, you must pay the rest out of pocket. If you can’t pay, you could get sued for the remainder. 

So, we recommend you carry more than the state minimum liability unless you can pay high amounts out of pocket after an accident. However, there are ways to reduce auto insurance costs for expensive coverage, from shopping around to taking advantage of auto insurance discounts.

Some states allow you to post cash bonds or pay uninsured motorist fees if you opt out of a liability insurance policy. However, if you’re leasing a car in one of these states, you may still need to carry liability insurance if it’s in your contract.

However, most states require all drivers to carry liability insurance. Drivers who don’t carry liability insurance face fines, suspended licenses or registrations, and increased insurance rates.

Minimum Liability Auto Insurance Requirements by State 

Minimum liability insurance amounts depend on your state. The table below lists the liability insurance requirements by state:

Minimum Liability Auto Insurance Requirements by State

Some places with the highest state minimum auto insurance requirements include Alaska, Maine, and North Carolina.

Difference Between Liability Auto Insurance vs. Full Coverage

You must purchase liability coverage meeting your state’s minimum coverage requirements. On average, liability auto insurance costs $45 monthly, whereas full coverage auto insurance is $119.

While full coverage can cost much more than minimum coverage, it’s important to consider the benefits of a full coverage policy before considering what insurance types to purchase.

Full coverage policies include collision and comprehensive insurance. Collision insurance covers damages to your vehicle associated with an accident, while comprehensive insurance covers things like vandalism, inclement weather damage, and other non-accident-related incidents.

If you drive a lot, drive in heavy traffic, or park your car on the street or outside a garage, a full coverage policy could help you spend less if your car gets damaged.

Choosing Between Liability-Only Auto Insurance and Full Coverage

The coverage types you should carry on your vehicle boils down to risk. If you own your vehicle and it’s older, you may want to consider a liability-only policy. However, a full coverage policy may be your best bet if you have a loan or lease on your vehicle or it’s fairly new.

If you only drive the vehicle sparingly, there is less risk involved for dropping the insurance coverage to liability only. If this vehicle has a blue book value of several thousand dollars, it will make more sense to protect your asset.

When Liability-Only Auto Insurance Makes Sense

Consider a liability-only policy if you drive an older vehicle worth less than the cost of a full coverage policy plus your auto insurance deductible.

For example, if adding full coverage to your policy costs around $500 per year and your deductible is $1,000, you would pay $1,500 before insurance helps cover vehicle repairs. However, you’ll lose money if your car is worth less than $1,500.

If your driving record includes several traffic violations and car accidents, then your insurance premium is going to be higher than average. If this is the case, you have more to gain by opting for the minimum coverage.

If your family has more than one vehicle that is insured, it may make financial sense to move to liability only for one of the vehicles. The risk involved is based on how much the vehicle is worth and how often the vehicle is driven.

When Liability-Only Auto Insurance Doesn’t Make Sense

In most cases, anyone who owns a newer or more valuable car should carry full coverage. The protection that comes with full coverage offers peace of mind that you won’t pay thousands of dollars out of pocket if your car gets damaged.

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Add-on Auto Insurance Coverage

The only coverage you must carry is your state’s minimum requirement. However, some states require more than liability insurance. Some states also demand drivers carry:

• Personal injury protection: Personal injury protection (PIP) auto insurance helps cover expenses after an accident, including child care, lost wages, and medical bills.
• Medical payments (MedPay): MedPay covers your medical costs after an accident or collision but won’t cover lost wages
• Uninsured/underinsured motorist: This coverage helps if you get hit by someone who doesn’t carry insurance or carries inadequate coverage.

Required additional coverages depending on your location. You can research online or contact your local department of motor vehicles to learn more.

Factors Affecting Your Liability Auto Insurance Rates

First, consider some of the factors that will influence your own auto liability insurance rates:

• Insurance company: Insurers all have their own rate charts and underwriting guidelines. For example, liability coverage with Progressive auto insurance costs around $39 monthly, whereas Liberty Mutual auto insurance averages $68.
• Vehicle make and model: Some cars may have a history of being involved in fewer accidents, have additional safety features, or be relatively cheap and easy to repair. So, always compare auto insurance rates by vehicle make and model to get cheap liability insurance.
• Drivers on the policy: Auto insurance for teens and seniors is more expensive. So, expect higher liability auto insurance rates if you have any of these drivers on your policy.
• Available discounts: Insurers offer all sorts of auto insurance discounts to attract certain types of clients, including discounts for taking driving classes or setting up automatic payments.
• Credit score: Most insurance companies, such as Geico auto insurance, consider their clients’ credit scores and only give the cheapest rates to people with good credit.
• ZIP code: Auto insurance rates by ZIP code vary. Insurers charge more for customers in some areas if they’re associated with high repair costs, lots of uninsured drivers, or frequent accidents.

Discounts are one of the best ways to save, as you can see from the average discounts at the cheapest liability-only companies below.

Cheapest Liability-Only Auto Insurance Companies Top Auto Insurance Discounts and Percentage of Savings

Bundling policies can be a great way to save instantly on your auto insurance. Every insurance company on our list offers plenty of other insurance types. For example, USAA has home insurance, life insurance, renters insurance, and more.

How can knowing these things help you save money? Obviously, some of these factors are not that easy to control, or at least they aren’t very easy to control quickly.

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— AutoInsurance.org (@AutoInsurance) August 4, 2023

You might be unable to move to a cheaper town just to save money on your liability auto insurance. However, you might consider buying a cheaper vehicle to insure the next time you shop for a used or new vehicle.

How to Get Affordable Liability Auto Insurance Coverage

Note every step that you can take to save money has to take a long time. There are some things you can do if you’re wondering how to lower your auto insurance premiums for liability-only coverage, including:

• Shop around. Learn where to get multiple auto insurance quotes to help you find the most competitive liability-only car insurance company.
• Take a driving safety class. Many insurers offer a 5% to 10% discount for customers who take a defensive driving class. Read more about how to get a defensive driver auto insurance discount.
• Increase your per-accident deductible. Raising your deductible means paying more out of pocket after an accident, but you could save on your monthly rates.
• Look for auto insurance discounts. Look for the combination of auto insurance discounts that benefits you the best.
• Buy a cheaper car. Older or used cars are usually cheaper to insure. So, consider buying one to enjoy lower liability-only car insurance rates. Learn more about the best car insurance for used cars.

Getting affordable liability auto insurance quotes is easier than you think. Follow the steps above to find your state’s minimum liability auto insurance at an affordable rate.

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The Final Work on Cheap Liability Auto Insurance Coverage

If your car is paid off and older, a liability-only policy may work well for you. You may want to consider purchasing a full coverage policy if you’re leasing or financing a vehicle or if your vehicle is fairly valuable. While you’ll pay more for car insurance, this coverage type could help you save a lot of money if your vehicle gets damaged.

Shop online and compare quotes from multiple companies in your area using our free quote tool to find the cheapest auto insurance for liability-only coverage.

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