The cheapest liability car insurance is from Geico, AAA, and USAA. Liability-only car insurance is coverage that only pays for damage that you cause to other people and their property in a car accident, and it is the minimum amount of car insurance required in most states. A liability-only car insurance policy is cheaper than full coverage, which also covers damage to your vehicle.
Cheapest Liability Car Insurance Companies
- Cheapest for Good Drivers: Geico
- Cheapest for Drivers with One Speeding Ticket: USAA
- Cheapest for Drivers with a DUI: Mercury
- Cheapest for Drivers with One At-Fault Accident: AAA
- Cheapest for Teen Drivers: Travelers
- Cheapest for Older Drivers: Geico
Liability-only insurance costs an average of $609 per year from the cheapest companies. To help drivers find the cheapest liability insurance for their needs, WalletHub analyzed quotes from 17 major auto insurance companies.
What Is Liability-Only Car Insurance?
Liability-only car insurance is a type of coverage that pays for the damage you cause to others and their property. Liability coverage is divided into property damage and bodily injury subcategories, and in some states, liability-only insurance is the minimum amount of coverage required. But in others, drivers also need to purchase coverage besides liability insurance, such as MedPay, personal injury protection, or uninsured motorist insurance.
A liability-only car insurance policy is cheaper than full coverage, which covers damage to your vehicle in various situations. But it’s not always the right choice. If you only buy liability insurance, you’ll be on the hook for your own expenses if you are at-fault in an accident that leaves you with medical or car repair bills. Liability-only insurance also means that you cannot file a claim if a natural disaster or other uncontrollable event damages your vehicle.
- Geico: $42 per month
- AAA: $48 per month
- USAA: $53 per month
- Progressive: $54 per month
- Mercury: $56 per month
Drivers with a clean record will pay the least for car insurance, since insurance companies consider them to be the lowest risk. Policyholders without recent violations or at-fault accidents are eligible for good driver discounts with almost every major auto insurance company. Good drivers can also earn accident forgiveness with some insurers, meaning that their first at-fault accident won’t cause their rate to increase.
- USAA: $58 per month
- AAA: $60 per month
- Geico: $63 per month
- Mercury: $72 per month
- 21st Century Insurance: $74 per month
Speeding tickets will raise a driver’s insurance premium by an average of 25% for 3-5 years. But each insurance company will treat a speeding ticket differently, which is another reason to get multiple quotes.
- Mercury: $91 per month
- Geico: $101 per month
- Progressive: $111 per month
- Travelers: $116 per month
- Safeco: $116 per month
A DUI conviction can more than triple insurance premiums in some states. Drivers with a DUI might also be required to file an SR-22 or FR-44, which can make coverage even more expensive. If it’s an option for you, purchasing a liability-only policy can be a good choice if your DUI conviction has made a full coverage policy unaffordable.
- AAA: $60 per month
- Geico: $75 per month
- Esurance $92 per month
- USAA: $96 per month
- Travelers: $96 per month
- Travelers: $109 per month
- USAA: $133 per month
- Mercury: $140 per month
- Progressive: $153 per month
- State Farm: $158 per month
Teen drivers are more expensive to insure than the average driver due to their lack of experience, but purchasing liability-only insurance is one way to make teen car insurance more affordable. It’s also usually cheaper to add a teenager to a parent’s existing policy than it is to purchase an individual policy for a teen.
- Geico: $42 per month
- AAA: $51 per month
- USAA: $53 per month
- Mercury: $57 per month
- Travelers: $58 per month
Car insurance prices begin to rise once drivers hit 65 years old, since older drivers are more likely to be in expensive accidents than middle-aged drivers. But older drivers also have multiple opportunities to save, such as by comparing quotes and taking senior driving courses.
Full Coverage vs. Liability Cost
|Company||Liability Cost||Full Coverage Cost||Percent Difference|
Liability insurance is cheaper than full coverage because it only covers damage and injuries that you cause to others. On the other hand, full coverage pays for repairs if your car is damaged by an accident that you cause or by something out of your control, like vandalism or a natural disaster. The exact cost difference will vary depending on your individual risk factors as well as the insurance company you choose.
For more information on the difference between liability and full coverage car insurance, check out WalletHub’s complete guide. To learn more about the quotes in the table, see the methodology section below.
Liability Insurance Costs by State
For more information about these quotes, see the methodology section below.
Tips for Finding Cheap Liability Insurance
1. Compare Quotes
Comparing quotes from multiple companies should always be your first step when you’re shopping for auto insurance, since it will help you get the best deal. Every company calculates premiums differently, so use this list as a starting point to find the cheapest prices for your individual circumstances.
2. Look for Discounts
Every insurance company offers a range of discounts that can help reduce your premium, and it’s well worth the effort of asking about discounts that aren’t applied automatically. For instance, ask your insurer if they offer discounts for taking a defensive driving course, or see if you can save by paying via automatic withdrawal.
3. Consider Your Coverage Limits
Lowering your liability limits will reduce your premium. However, low liability limits may cost you money in the long run if you don’t have enough coverage to pay for the damage that you cause in a car accident. So it’s best to consider whether your state’s required car insurance coverage will protect you from the financial ramifications of a serious accident.
4. Reduce Your Risk Factors
Although car insurance companies consider some factors that you can’t control, like age and gender, there are some things you can change. For instance, improving your driving record and raising your insurance score will help lower your premium over time.
WalletHub editors compared 17 major car insurance companies to determine the cheapest liability insurance. The premiums above are an average of a series of quotes sourced from Quadrant Information Services. All premiums are annual rates.
The baseline driver profile was a 45-year-old single man with a clean driving record and good credit, who drives a sedan an average of 15,000 miles per year. The older-driver premiums were based on a 65-year-old driver with the same car and mileage. The teen driver profile reflects an average of premiums for 16 to 19-year-olds, also with the same car and mileage.
The following coverage limits were used for most categories, as well as for the company cost comparison table:
- $15,000 in bodily injury liability coverage per person
- $30,000 in bodily injury liability coverage per accident
- $5,000 in property damage liability coverage per accident
The full coverage premiums used the following coverage limits:
- $100,000 bodily injury liability coverage per person
- $300,000 bodily injury liability coverage per accident
- $50,000 property damage liability coverage per accident
- $100,000 uninsured motorist bodily injury coverage per person
- $300,000 uninsured motorist bodily injury coverage per accident
- $50,000 uninsured motorist property damage coverage per accident
- Collision coverage with a $500 deductible
- Comprehensive coverage with a $500 deductible
WalletHub editors determined the cheapest company in each state using quotes for the baseline driver profile. Quotes were averaged from a variety of zip codes using each state’s minimum coverage requirements.