State Farm has the cheapest liability-only car insurance for most drivers, at $70 a month. For military personnel and veterans, USAA has the cheapest minimum-coverage car insurance at $43 a month.
In this article:
Who has the cheapest liability auto insurance?
For most drivers, State Farm has the cheapest rates, at an average of $70 a month. But for active duty military members and veterans, USAA offers the cheapest rates at $43 a month.
Depending on the state you drive in, some regional insurance companies like Erie and Farm Bureau will offer the cheapest rates.
| Company | Monthly rate | |
|---|---|---|
 |
State Farm | $70 |
 |
American Family | $72 |
 |
Progressive | $79 |
 |
GEICO | $86 |
 |
Nationwide | $96 |
 |
Allstate | $106 |
 |
Travelers | $115 |
 |
Farmers | $117 |
 |
USAA* | $43 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. *USAA is only available to current and former members of the military and their families. |
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To find your best and cheapest rate for liability-only coverage, compare car insurance quotes from several companies.
How to find cheap liability-only car insurance
The best way to find the cheapest liability-only rates is to compare quotes from multiple insurance providers.
It’s also important to look for additional auto insurance discounts. Some companies offer discounts for bundling home and auto insurance, being a good student or low-mileage driving.
Do your research before committing to a policy.
What is liability-only car insurance?
Liability-only car insurance covers medical bills, car repair bills and other expenses for other drivers if you cause a car accident. Unlike full-coverage car insurance, liability-only does not cover any damage to your vehicle.
In most states, liability coverage consists of bodily injury liability and property damage liability.
- Bodily injury liability: This pays for the injuries you cause to another party in an at-fault accident.
- Property damage liability: This portion of your liability coverage pays for any damage you cause to someone else’s property, such as another vehicle or a building.
How much does liability-only car insurance cost compared to full coverage?
With liability car insurance, only the injuries and repairs of others are covered under your policy. With full-coverage car insurance, you can get reimbursed for your own medical and repair bills that arise after an accident you cause.
Because of this, full-coverage car insurance tends to cost more. Full-coverage car insurance costs an average of $82 more per month than liability-only car insurance.
The graph below shows the cost differences between minimum-coverage and full-coverage policies offered by major providers.
| Company | Liability coverage | Full coverage | Difference per month |
|---|---|---|---|
| American Family | $72 | $125 | $52 |
| State Farm | $70 | $130 | $61 |
| Nationwide | $96 | $179 | $83 |
| Progressive | $79 | $166 | $87 |
| Farmers | $117 | $213 | $98 |
| Travelers | $115 | $213 | $98 |
| GEICO | $86 | $185 | $99 |
| Allstate | $106 | $215 | $109 |
| USAA* | $43 | $93 | $49 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. *USAA is only available to current and former members of the military and their families. |
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Get cheap liability car insurance where you live
Cheapest liability car insurance by state
Below is a table showing the average monthly rate in each of the 50 states for liability-only car insurance. South Dakota has the cheapest average rate of $29 a month, while Michigan has the highest at $237 a month.
| State | Cheapest insurer | Monthly rate |
|---|---|---|
| Alabama | State Farm | $80 |
| Alaska | Allstate | $69 |
| Arizona | State Farm | $98 |
| Arkansas | GEICO | $56 |
| California | CSAA | $70 |
| Colorado | State Farm | $106 |
| Connecticut | Travelers | $109 |
| Delaware | State Farm | $119 |
| Florida | GEICO | $30 |
| Georgia | Auto-Owners | $84 |
| Hawaii | GEICO | $60 |
| Idaho | State Farm | $41 |
| Illinois | State Farm | $75 |
| Indiana | Auto-Owners | $51 |
| Iowa | State Farm | $43 |
| Kansas | State Farm | $50 |
| Kentucky | State Farm | $96 |
| Louisiana | State Farm | $127 |
| Maine | State Farm | $41 |
| Maryland | State Farm | $105 |
| Massachusetts | Safety | $89 |
| Michigan | Progressive | $237 |
| Minnesota | State Farm | $71 |
| Mississippi | State Farm | $64 |
| Missouri | State Farm | $75 |
| Montana | State Farm | $63 |
| Nebraska | Farm Bureau | $57 |
| Nevada | State Farm | $147 |
| New Hampshire | Hanover | $47 |
| New Jersey | GEICO | $104 |
| New Mexico | State Farm | $71 |
| New York | Progressive | $131 |
| North Carolina | Farm Bureau | $46 |
| North Dakota | American Family | $44 |
| Ohio | Progressive | $85 |
| Oklahoma | Progressive | $82 |
| Oregon | State Farm | $138 |
| Pennsylvania | Progressive | $71 |
| Rhode Island | Amica | $135 |
| South Carolina | Auto-Owners | $89 |
| South Dakota | Farmers | $29 |
| Tennessee | Farm Bureau | $65 |
| Texas | GEICO | $81 |
| Utah | State Farm | $83 |
| Vermont | State Farm | $34 |
| Virginia | Farm Bureau | $85 |
| Washington | State Farm | $94 |
| Washington D.C. | Erie | $65 |
| West Virginia | State Farm | $62 |
| Wisconsin | State Farm | $63 |
| Wyoming | GEICO | $38 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Should I switch to liability car insurance?
There are some factors such as the state of your car and how often you drive to consider if you're wondering about going from full-coverage to liability-only car insurance.
Overall, you're going to want to gauge if the premium cost difference is enough to justify not keeping the benefits of full-coverage car insurance.
The first thing to consider is how old your car is. An automobile starts losing value the second you drive it off the lot, then keeps depreciating from there. If you have an older car, your payout on a claim if it's destroyed may not be enough to justify paying full-coverage costs.
If you rarely or never drive, you may consider downgrading your full-coverage insurance to liability coverage. Less time on the road means fewer chances of an accident. However, this means you would also be getting rid of comprehensive auto insurance. You would be giving up coverage if your car is vandalized or stolen, which can happen no matter how often you drive.
If you can afford to repair or replace your car out of your own pocket and don't mind spending the money if you have to, consider dropping full coverage for liability coverage. Another good reason to change your policy is if you're going to be selling your car soon.
Frequently asked questions
If you drive an older, less-expensive car that you own outright, liability-only car insurance could be a good option for you. Also, if you wouldn’t repair the car if it got damaged, it may not be worth it to pay for full coverage.
If you owe money on your vehicle or wouldn’t be able to afford to replace your vehicle if it was damaged, liability-only car insurance may not be the right option for you.
For most drivers, State Farm has the cheapest rates, at an average of $70 a month.
Depending on the state you drive in, some regional insurance companies like Erie and Farm Bureau will offer the cheapest rates.
State Farm has the cheapest rates for young drivers, followed by American Family.
For military members and their families, USAA has the cheapest car insurance rates for young drivers, starting with an average of $215 a month for 16-year-olds.
Depending on who is at fault for the accident, you will have to pay to replace the vehicle yourself or file a claim with the other driver’s insurance company.
The Insurance Information Institute lists the minimum liability coverage required for all states. With the exception of New Hampshire, which does not require car insurance, all 50 states plus Washington D.C. require some liability car insurance.
Methodology
We gathered rates across 50 states and Washington, D.C., in all ZIP codes in each state. For liability-only rates, we included the top insurance companies in the U.S. by market share.
Rates shown in this analysis are based on non-binding quotes for car insurance obtained from Quadrant Information Services.
The providers used in this analysis include:
- Allstate
- American Family
- Farmers
- GEICO
- Nationwide
- Progressive
- State Farm
- Travelers
- USAA
Unless otherwise noted, the typical driver is a 35-year-old male who drives a 2014 Honda LX for an average of 13,500 miles a year.
- Liability-only car insurance rates are derived from the average cost of a policy that meets a state's minimum required auto insurance coverage.
Full-coverage car insurance includes the following coverages, limits and deductibles:
- Bodily injury liability: $100,000 per person/$300,000 per year
- Property damage liability: $100,000
- Collision: $500 deductible
- Comprehensive: $500 deductible
In states where uninsured/underinsured motorist coverage and personal injury protection are required, the minimum limits required by law are included in the quoted policy.
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