Will cheap liability auto insurance have me covered?

Check your state's minimum coverage, but you may want to get more so you're fully covered. The national average for liability insurance in 2015 was $538.73.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Oct 26, 2021

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Things to Remember...

  • One thing you need to make sure of is that you are truly covered with your state’s minimum requirements
  • Liability insurance is the required minimum in almost all 50 states
  • Make sure you shop around to get the best cost for the coverage you need
  • Compare at least 3 companies, and don’t forget to look at big as well as small local insurance providers

Most people would like to save money on auto insurance. The problem is that many people fear the consequences of buying any but the maximum coverage from the best-known brands.

However if you dig a little deeper, you can find out if cheap liability auto insurance will have you covered. Learn more about auto insurance below and make sure you use our free insurance quote tool above!

Features That Cut the Cost of Cheap Auto Insurance

The natural assumption is that cheap auto insurance will somehow let you down. Of course, there are reasons that some auto insurance companies can afford to sell auto insurance so cheap.

Some of these reasons are perfectly legitimate:

  • They offer only minimum coverage
  • Sales are direct without agents or brokers
  • Online companies may have lower overhead
  • The staff on hand at certain times of day may be limited to bare essentials
  • Some useless or less expensive advertising

Most of these reasons will have an effect on you in one way or another. The important thing to find out is whether they will keep you from getting the insurance you want and need.

Explore each savings method to make sure the company is taking care of your needs.

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Minimum Insurance

It saves money to get minimum insurance, most definitely. One thing you need to make sure of is that you are truly covered by your state’s minimum requirements. It is easy to find out what they are.

Just check with your state’s Department of Motor Vehicles to request the information. These are the numbers you need to know.

  • One number is for bodily injury for individuals
  • Another maximum will be paid for bodily injury per accident
  • The most that will be paid for property damage is also added
  • Some states may require you to carry uninsured motorist insurance as well

These first three numbers will be presented in a series, such as 20/40/20, meaning $20,000 for bodily injury, $40,000 for total bodily injury in an accident, and $20,000 for property damage.

Make sure you check with your own state to get the right figures.


Direct Sales

Many companies use direct sales and cut out the middleman. They have operators who answer phones, explain the policies, and take information.

The policies are mailed to you, just like any of the auto insurance agencies will do. The difference is that there is at least one less person that has to make money on the transaction.

Low Overhead and Fewer Hours

The insurance companies that offer the cheapest auto insurance are usually the ones that do not have a walk-in location. This means that they do not need receptionists or reception areas. They do not have to worry about decorating.

They only have to have space and utilities for a small staff to handle the phone calls and the paperwork. They keep just enough people working just enough hours to get the job done.

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Cheap auto liability plans are products that most insurance companies do not go to great lengths to advertise.

There have recently been a few who have taken that route, but the advertising is still not extremely glossy or expensive. It involves the kinds of ads and marketing that save money.

Reasons to Have Liability Insurance

You may be hesitant to get liability only insurance, but there are some perfectly good reasons it may be to your advantage. These reasons demonstrate how auto liability covers you where and when you need it to cover you.

  • By having minimum or better liability insurance, you will meet the state requirements
  • It may keep you out of jail
  • It may keep you from losing your license
  • If you have an older car, there would be little advantage to getting full coverage. If you were ever in an accident, it would nearly always cost more to fix the car than what it was worth

What the Insurance Company Will Do for You with Liability Insurance

If you do have an accident when you only have liability insurance, the insurance company will still do its job for you.

It will negotiate with the driver of the other car. It will assess the damage. It will pay the claims, up to the legal limit to the other driver and injured passengers.

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What Cheap Liability Insurance Will Not Do for You

Cheap liability insurance will not fix your car. That is not its purpose. If you want a policy to fix your car, you need another type of insurance.

However, keep in mind that more extensive coverage is only advantageous if you have a car that is more valuable than the cost of fixing. Also know that full coverage costs considerably more.

The answer to the question of whether cheap liability auto insurance will have you covered is: it depends on what you mean by covered.

Cheap liability insurance will cover you if you make sure you have the proper requirements covered. It will cover you perfectly fine if your car is not new or expensive. For many people, it is a good deal.

Don’t miss out on our free insurance comparison tool below! Just enter your zip code and start comparing rates now!


  1. https://www.baltimoresun.com/business/bal-bz.recession.insure15feb15-story.html
  2. https://www.thebalance.com/agents-versus-brokers-and-how-they-make-money-462383
  3. https://www.goodfinancialcents.com/best-auto-insurance-companies/
  4. https://bucks.blogs.nytimes.com/2010/11/24/more-on-the-most-and-least-expensive-vehicles-to-insure/

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