If you're looking for liability-only car insurance, USAA has the cheapest average rate at $102 a month. However, USAA only sells insurance products to military personnel and veterans. For everyone else, State Farm is the cheapest option at $136 a month, with American Family being the next in line at $151 a month.
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Who has the cheapest liability auto insurance?
We looked at companies providing liability car insurance and found USAA has the lowest rate of $102 a month. USAA limits its insurance offerings to active duty and veteran military members. Everyone else gets the best rate with State Farm, at an average of $136 a month.
| Company | Monthly rate |
|---|---|
| USAA | $102 |
| State Farm | $136 |
| American Family | $151 |
| GEICO | $164 |
| Allstate | $185 |
| Progressive | $201 |
| Nationwide | $223 |
| Farmers | $242 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
To find your best and cheapest rate for liability-only coverage, compare car insurance quotes from several companies.
How does liability-only car insurance work?
Liability car insurance covers bodily injury and property damage. Some states require uninsured and underinsured motorist coverage as well. Also referred to as "minimum-coverage car insurance," it is designed to cover medical costs, legal fees and repair or replacement of property you are responsible for damaging.
Most states have legally-required liability car insurance limits. It should be kept in mind that these limits are minimum requirements and usually do not provide sufficient coverage in the event of a major accident.
It should be apparent that liability-only car insurance does not cover your own costs if you're in an accident, or if your car is stolen or vandalized. In order to cover your own expenses, you would need full-coverage car insurance. Full-coverage car insurance combines liability car insurance with collision and comprehensive coverage.
How much cheaper is liability-only coverage than full coverage?
Liability-only coverage is cheaper than full coverage due to the more limited range of protection. The graph below shows the cost differences between minimum-coverage and full-coverage policies offered by major providers.
| Company | Liability coverage | Full coverage | Difference |
|---|---|---|---|
| Allstate | $185 | $415 | $230 |
| American Family | $151 | $294 | $143 |
| Farmers | $242 | $427 | $185 |
| GEICO | $164 | $418 | $254 |
| Nationwide | $223 | $445 | $222 |
| Progressive | $201 | $378 | $177 |
| State Farm | $136 | $266 | $130 |
| Travelers | $368 | $660 | $292 |
| USAA | $102 | $228 | $126 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |||
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. North Carolina has the cheapest average rate of $44 a month, while Arizona has the highest at $228 a month.
| State | Average rate |
|---|---|
| Alabama | $158 |
| Alaska | $112 |
| Arizona | $228 |
| Arkansas | $118 |
| California | $140 |
| Colorado | $165 |
| Connecticut | $202 |
| Delaware | $184 |
| Florida | $219 |
| Georgia | $141 |
| Hawaii | $119 |
| Idaho | $46 |
| Illinois | $95 |
| Indiana | $60 |
| Iowa | $49 |
| Kansas | $126 |
| Kentucky | $151 |
| Louisiana | $136 |
| Maine | $45 |
| Maryland | $108 |
| Massachusetts | $87 |
| Michigan | $208 |
| Minnesota | $116 |
| Mississippi | $86 |
| Missouri | $69 |
| Montana | $50 |
| Nebraska | $61 |
| Nevada | $133 |
| New Hampshire | $67 |
| New Jersey | $162 |
| New Mexico | $68 |
| New York | $177 |
| North Carolina | $44 |
| North Dakota | $53 |
| Ohio | $61 |
| Oklahoma | $81 |
| Oregon | $108 |
| Pennsylvania | $83 |
| Rhode Island | $170 |
| South Carolina | $124 |
| South Dakota | $39 |
| Tennessee | $55 |
| Texas | $109 |
| Utah | $95 |
| Vermont | $49 |
| Virginia | $71 |
| Washington | $119 |
| Washington DC | $75 |
| West Virginia | $62 |
| Wisconsin | $56 |
| Wyoming | $39 |
| 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.
Methodology
We used Quadrant Information Services to generate thousands of car insurance quotes from every state from the following providers:
- Allstate
- American Family
- Farmers
- GEICO
- Nationwide
- Progressive
- State Farm
- Travelers
- USAA
Our sample driver is a 35-year-old male with a clean record who drives a 2012 Honda Accord LX 13,500 miles per year.
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