Cheapest Liability-Only Car Insurance (2026)
American Family has the cheapest liability-only car insurance for most drivers, at around $60/mo.
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Cheap liability car insurance quotes
Liability insurance costs an average of $76 per month nationwide, and it's the cheapest coverage you can get. But liability-only insurance won't pay for damage to your own car after a crash.
If you have a car loan or lease, your lender typically requires a full coverage insurance policy.
Cheapest liability-only car insurance
American Family has the cheapest liability-only car insurance among national insurance companies, at $60 per month, on average.
Find Cheap Liability-Only Car Insurance in Your Area
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Auto-Owners and Erie are the cheapest midsize companies, at $52 per month and $53 per month, respectively. Both companies also have great customer service.
However, Auto-Owners is only available in 26 states, and Erie only sells car insurance in 12 states and Washington, D.C.
- USAA is the cheapest company overall for liability-only coverage, at just $41 per month. However, only current or former military members and their families can get car insurance from USAA.
Cheapest liability insurance rates
Company | Monthly rate | ||
|---|---|---|---|
| Auto-Owners | $52 | |
| Erie | $53 | |
| Mercury | $58 | |
| American Family | $60 | |
| Geico | $65 | |
*USAA is only available to current and former military members and their families.
Data-powered research on liability-only car insurance
| Data-powered research on liability-only car insurance |
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What's the cheapest liability-only car insurance near me?
Geico has the cheapest liability-only car insurance quotes in 11 states, more than any other company.
State Farm has the cheapest minimum liability rates in eight states, while Erie has the lowest prices in five states and Washington, D.C.
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Cheap liability car insurance rates by state
State | State avg. | Cheapest rate | |
|---|---|---|---|
| Alabama | $66 | Travelers | $43 |
| Alaska | $55 | Geico | $45 |
| Arizona | $90 | Travelers | $70 |
| Arkansas | $63 | State Farm | $47 |
| California | $75 | Geico | $41 |
While American Family is the cheapest major company nationally, it's not the cheapest company overall in any particular state. On the other hand, there are nine companies that have the cheapest rates in only one state each.
That's why it's important to compare rates from major insurance companies along with regional or midsize companies to find the most affordable car insurance near you.
Rates differ by state because each state has its own insurance requirements. And different types of damage are more common in certain states.
For example, Texas has the most fatal accidents of any state in the U.S. That's one reason liability-only insurance in Texas is $9 per month more expensive than the national average.
How to find the best cheap liability auto insurance
To find low-cost, liability-only auto insurance, you should shop around for quotes, bundle your home or renters insurance and qualify for as many discounts as you can.
The best way to find affordable liability-only car insurance is to compare liability quotes from multiple insurance companies.
There's a difference of $53 per month between the cheapest major insurance company for liability-only coverage, American Family, and the most expensive, Allstate. That could add up to a savings of more than $600 per year.
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.
When calculating your quote, insurance companies consider the amount of coverage you need, along with your age, driving history, credit score and where you live. So the cheapest company for you may be different from the most affordable option overall.
Bundling your auto and home or renters insurance with the same company is another great way to get cheap liability-only insurance.
Homeowners can save an average of 17% on their car insurance by buying both policies from the same company. That's an average savings of $13 per month, or $155 per year, for liability-only insurance.
Renters have a much smaller bundling discount, at an average savings of 2.6%. However, that's still a savings of around $24 per year.
There are lots of other discounts that can add up to big savings on your liability-only car insurance policy.
Some are very easy to get, like discounts for buying a policy online, getting your bills via email instead of in the mail, signing up for automatic payments or buying your policy a few days before your current policy expires. These discounts don't typically save you a lot of money on their own. But together, they could help to lower your insurance bill by a significant amount.
Safe drivers looking for a bigger discount should consider a usage-based program. By allowing your car insurance company to track your driving habits, you could save up to 40% off your liability-only car insurance.
However, some companies — like Progressive and Geico — will raise your rates if you display bad driving habits, like speeding, hard braking or driving late at night. It's best to choose a usage-based company that won't raise your rates, like State Farm, Nationwide or USAA.
How much cheaper is liability-only car insurance than full coverage?
Liability car insurance costs an average of 63% less than full coverage.
The main reason that liability-only car insurance is much cheaper than full coverage insurance is because it doesn't include collision and comprehensive coverage. These protect your car against damage, no matter whose fault it is.
If you have a liability-only policy, your insurance company won't pay to fix your car after a crash.
Find Cheap Liability-Only Car Insurance in Your Area
Monthly cost of liability-only vs. full coverage car insurance
Company | Minimum liability | Full coverage | Difference |
|---|---|---|---|
| Auto-Owners | $52 | $171 | $119 |
| Erie | $53 | $154 | $101 |
| Mercury | $58 | $218 | $160 |
| American Family | $60 | $159 | $99 |
| Geico | $65 | $187 | $122 |
*USAA is only available to military members, veterans and their families.
Company | Minimum liability | Full coverage |
|---|---|---|
| Auto-Owners | $52 | $171 |
| Erie | $53 | $154 |
| Mercury | $58 | $218 |
| American Family | $60 | $159 |
| Geico | $65 | $187 |
*USAA is only available to military members, veterans and their families.
Why is liability-only car insurance so much cheaper than full coverage?
Full coverage is typically more expensive than a liability-only policy because it offers much more protection for you and your car.
A full coverage policy typically includes collision and comprehensive coverage and more liability protection than required by your state.
Collision and comprehensive 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're only protected if another driver damages your car.
Dropping collision and comprehensive coverage helps you save on car insurance. However, you'll spend much more for repairs after an accident because you'll have to pay to fix your car yourself.
Is cheap liability-only car insurance worth it?
Liability-only coverage may be a good idea if your car is worth less than $5,000 or is more than 8 years old.
But you should still consider higher liability limits than the state minimum, if you can afford it.
When to get liability-only coverage
- You don't have a car loan or lease
- Your car is older or not valuable
- You have enough savings to easily replace your car
- You park your car indoors at night
- You don't have a daily commute
- You don't often drive at night
- You can only afford the cheapest possible insurance
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
Even if you don't need to add comprehensive and collision to your policy, you should still consider getting higher liability limits than your state requires.
The amount of liability insurance required by law often isn't enough to cover the cost of a serious accident. Raising your liability limits typically doesn't cost very much. And it could save you a lot of money if you cause a major accident.
What is liability-only car insurance?
Liability-only car insurance, also called personal liability and property damage insurance, pays for other people's medical care and car repairs after an accident you cause.
The most basic liability-only coverage you can buy is the minimum amount of car insurance you need to legally drive your car. But you can also get higher limits with a liability-only policy.
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 basic liability insurance to meet minimum coverage requirements. Elsewhere, drivers must also buy one of the following — or both — to meet the minimum insurance requirements:
- Personal injury protection or medical payments: Covers medical bills for you and your passengers after a crash, no matter whose fault it is.
- 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.
Frequently asked questions
How much is liability insurance for a car?
The average cost of liability insurance is $76 per month in the U.S. However, rates vary depending on where you live, your driving history and your insurance company.
Where can I get the cheapest auto insurance?
American Family is the cheapest widely available liability-only car insurance company, at $60 per month. Smaller regional companies, like Erie and Auto-Owners, tend to have cheaper rates. USAA is also an excellent option for liability-only insurance, but it's not available to all drivers.
What is liability car insurance?
Liability car insurance pays for property damage or injuries to others when you cause an accident. Nearly every state requires liability insurance.
Is $200 a month for liability insurance a lot?
Yes, $200 per month for a liability-only car insurance policy is a high price. The average cost of liability-only insurance is $76 per month nationally. However, your rates may be higher if you live in a big city with lots of traffic, are an inexperienced driver, have a poor credit score or have tickets or accidents on your record.
Methodology
To find the cheapest car liability insurance, ValuePenguin gathered rates across ZIP codes in all 50 states. Rates are included for all the insurance companies that offer policies in at least five states.
Rates are for a 30-year-old driver who drives a 2018 Honda Civic EX. He has good credit and a clean driving history.
To compare full coverage versus liability-only insurance rates, ValuePenguin collected quotes from 56 insurance companies across the U.S.
Full coverage rates include liability limits above state minimum levels. They also include uninsured and underinsured motorist bodily injury, comprehensive and collision coverage.
- Bodily injury liability: $50,000 per person and $100,000 per accident
- Property damage liability: $50,000 per accident
- Uninsured and underinsured motorist coverage: $50,000 per person and $100,000 per accident
- Personal injury protection: Minimum required by state
- Comprehensive and collision coverage: $500 deductible
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurance company filings and should be used for comparative purposes only. Your own quotes may be different.
Senior Writer
Lindsay Bishop is a Senior Writer at ValuePenguin, where she educates readers about home, auto, renters, flood and motorcycle insurance.
Lindsay began her career in the insurance and financial industry in 2010. She was a licensed auto, home, life and health insurance agent and held Series 6 and 63 financial licenses.
After a hiatus from the financial sector, Lindsay returned to the industry as a content writer for ValuePenguin in 2021. She enjoys having the opportunity to help readers make smart decisions about their insurance so they can be prepared for anything life throws their way.
When Lindsay isn't writing about insurance, you can find her spending time with family, enjoying the outdoors on Sunday long runs or riding her Peloton.
How insurance helped Lindsay
As a homeowner for 15 years located in South Carolina, Lindsay has plenty of experience navigating the coastal insurance market and managing the claims process. That includes successfully negotiating a full roof replacement claim.
Expertise
- Home insurance
- Car insurance
- Flood insurance
- Renters insurance
- Motorcycle insurance
Referenced by
- CNBC
- Yahoo Finance
- Miami Herald
Education
- BS/BA Economics, University of Nevada Las Vegas
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
