Cheapest Liability-Only Car Insurance in 2022
Liability-only car insurance costs as low as $532 annually, but your liability coverage won’t protect your car in an accident.
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UPDATED: Sep 14, 2022
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Table of Contents
- The average cost of a liability-only policy is $703 annually
- State Farm and GEICO tend to offer the cheapest rates for liability insurance
- A liability policy won’t protect your car if you’re in an accident or it gets damaged in a non-accident-related incident
If you own and drive a car, you must buy car insurance. The required coverage amount varies by location, as each state has minimum car insurance coverage laws.
While you can purchase a full coverage policy with comprehensive and collision insurance, you can also buy a liability-only policy for much cheaper. A liability-only policy will meet your state’s coverage requirements and help you save money on coverage.
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To find the cheapest liability car insurance in your area, compare liability car insurance quotes from multiple companies.
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How much does liability insurance cost?
You must find and compare quotes from multiple providers in your area to see how much liability insurance costs. Rates vary based on several factors, so you never know how much you’ll pay for coverage until you shop around.
Here’s a look at the average annual liability auto insurance rates across the U.S.
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Of the most popular insurance companies, State Farm offers the cheapest liability-only car insurance rates on average at $532 a year. Rates with State Farm are 24% lower than the average cost of liability in the U.S., around $700 annually.
GEICO’s rates for liability-only coverage are close to State Farm’s at $667 per year.
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USAA offers the cheapest rates for liability insurance at $437 per year, but the company requires policyholders to have a military affiliation.
Sometimes, cheap liability insurance doesn’t come from major insurance companies. For instance, Farm Bureau offers coverage for around $472 per year, and Erie liability coverage costs just $503 annually.
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Insurance companies like Travelers and Farmers often don’t offer cheap liability car insurance coverage, so it’s a good idea to shop around and compare prices before deciding on the insurance company you’ll use.
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Who offers the cheapest liability-only coverage in each state?
Your car insurance rates will depend partially on where you live, as it’s more expensive to purchase car insurance in some states than others.
Each state has different requirements when it comes to how much coverage you will need. You can look your state up online or visit your local DMV to find out the specifics on state minimum car insurance requirements.
What’s the difference between liability and full coverage?
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You must purchase liability coverage meeting your state’s minimum coverage requirements. On average, this coverage costs just over $700 per year. However, people typically pay around $500 more per year for a full coverage policy.
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.
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Full coverage costs around $1,270 annually, but if you drive a lot, drive in heavy traffic, or park your car on the street or outside of a garage, a full coverage policy could help you spend less if your car gets damaged.
Should I get a liability-only car insurance policy?
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.
When does liability coverage make sense?
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If you drive an older vehicle worth less than the cost of a full coverage policy plus a deductible, you should consider a liability-only policy.
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.
When does full coverage 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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Do I need additional car insurance coverage?
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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) 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 will not 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. Check out the minimum liability limits required by your state by the Insurance Information Institute.
Cheap Liability Car Insurance: The Bottom Line
If your car is paid off and older, a liability-only policy may work well for you. Shop online and compare quotes from multiple companies in your area to find the best liability insurance near 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.
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Frequently Asked Questions
What is liability car insurance?
Liability pays for damage you cause to other people and vehicles when you’re at fault in an accident. Liability includes property damage and bodily injury coverage, a requirement in almost every state.
Should I get liability or full coverage?
If you have an older car and paid it off, getting a liability policy may make the most sense. However, if your car is financed or fairly valuable, you should consider purchasing full coverage to avoid paying thousands of dollars out of pocket.
What happens if I’m in an accident and only have liability coverage?
Your liability coverage will pay for damage to other people and their vehicles, but you’ll have to pay for damage to your own car out of pocket if you were at fault in the accident.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
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Written by
Rachel Bodine |
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Reviewed by
Daniel Walker
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