Cheapest Liability Car Insurance [2025]: Where To Find Low Rates

Liability car insurance covers medical expenses and damages for other drivers when you're at fault for an accident. Most U.S. states have laws requiring drivers to carry liability coverage, with set amounts that vary by state. You may see this type of coverage referred to as minimum car insurance, and it's generally what people think about when they're looking for cheap policies.

Liability-only car insurance tends to be the cheapest car insurance you can carry, but rates for this vary widely by company and location. To help you find the lowest rates for liability coverage, I've researched top insurers to find those with the best premiums and policies for this type of insurance. Auto-Owners, USAA, and GEICO are just a few companies I recommend.

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Methodology

To compile this list of the best car insurance companies for cheap liability-only insurance policies, I gathered and compared average rates for dozens of the most prominent companies, as well as some regional carriers. To narrow down these options, I arranged companies in order from those with the lowest to the highest rates. Then, I applied the following factors to refine the top results further:

Rates: For the purposes of this list, I primarily considered average premiums for liability policies. Full-coverage rates vary among the companies recommended here, and some insurers are similarly competitive for these rates, while others are not.
Reputation: I considered each company's overall reputation for customer satisfaction, claims satisfaction, and financial stability when analyzing this data. Only companies with overall positive reputations are featured on this list.
Availability: Liability-only coverage is required for drivers in most states; however, not all car insurance companies issue policies in every state. For my research, I gave significant preference to companies offering coverage in every state and excluded some insurers with very limited or regional availability, despite low liability rates.

Here are the average rates for liability coverage for the five companies that stood out in my research, as well as who each insurer is best for.

Company name	Best for	Average monthly liability-only cost
Auto-Owners	Lowest liability-only rates	$38
USAA	Military members and their families	$50
GEICO	Teens and students	$111
Erie	Customer service	$90
State Farm	High-risk drivers	$55
Allstate	Good drivers	$66

Editor's note

Farm Bureau is another company with low average liability-only rates, but I didn't include it on this list because you must be a member of the organization to be eligible for car insurance. Membership dues vary by state but can be upwards of $100, increasing your overall costs.

Auto-Owners

Best for lowest liability-only rates

Company details

AM Best: A+
J.D. Power claims satisfaction: 692/1,000 (study average 697)
BBB: A+
NAIC complaints: 0.46 (Private Passenger)

Auto-Owners is consistently one of the most affordable car insurance companies, even when rates fluctuate. Compared to both national averages and rates from other insurers, including the most competitive among them, Auto-Owners offers the potential to save on car insurance to just about anyone.

But I can't talk about Auto-Owners without mentioning that it isn't available in every state. In fact, its car insurance policies are only offered in 26 states, so this will only be the best option for half the country. If you live in an eligible state, consider getting a quote. Everyone else, keep reading.

Pros

Very low average rates for liability-only and full coverage
Low complaint index with the NAIC
Access to local, independent agents

Cons

Quotes only available through an agent, not online
Only available in 26 states

Learn more in our Auto-Owners insurance review.

USAA

Best for military members and their families

Company details

AM Best: A++
J.D. Power claims satisfaction: 726/1,000 (study average 697)
BBB: A+
NAIC complaints: 0.96 (Private Passenger)

There's no question USAA is a great car insurance company, with consistently low premiums and positive ratings across the board for customer satisfaction and stability. But this company's greatest weakness is that it's out of reach for many of us — it's only available to active or retired military servicemembers and their families.

Of course, this is also a strength for people who can qualify. The company tailors its offerings specifically to military families, offering perks like military-specific discounts and policy flexibility you won't find with many companies.

Pros

Very low average rates for liability-only and full coverage
Many military discounts
Offers a usage-based insurance program (SafePilot Miles)

Cons

Policies only available to people affiliated with the military
Fewer specialty coverage policies and add-ons than some insurers

Learn more in our USAA car insurance review.

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GEICO

Best for teens and students

Company details

AM Best: A++
J.D. Power claims satisfaction: 692/1,000 (study average 697)
BBB: A+
NAIC complaints: 0.75 (Private Passenger)

GEICO stands out from other car insurance companies for its average liability-only rates for teen drivers, which are lower than those of most insurers. GEICO's rates are competitive, especially when you look just at companies anyone can qualify for (as opposed to insurers with limited statewide availability).

The insurer is an especially good choice for higher-risk drivers, including students and teens, because its premiums for this demographic are low even compared to other demographics with the company. Often, you'll see the highest rates given to this group of drivers, and sometimes it isn't even close. With GEICO, average rates for teens can be similar to average rates for people with accidents.

Good to know

It's worth noting that GEICO's rates are less competitive for full-coverage policies, so this company could make a little more sense for people willing to take less coverage for lower rates.

Pros

Available in all 50 states
Very high customer satisfaction and financial stability ratings
Many discounts and coverage options

Cons

Limited access to local agents
Doesn't offer GAP insurance
Rates can be confusing or unexpected when purchasing or renewing

Learn more in our GEICO car insurance review.

Erie

Best for customer service

Company details

AM Best: A+ (Superior)
J.D. Power claims satisfaction: 733/1,000 (study average 697)
BBB: A+
NAIC complaints: 0.82 (Private Passenger)

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If getting good customer service is your priority, it's hard to go wrong with Erie — if you're lucky to live where it offers coverage, that is. It also offers numerous cost-saving measures like an optional add-on that keeps your rates stable. Plus, after you've been a customer for three years, Erie won't raise your rates after your first accident.

One area where it's not on par with competitors is its telematics program, which can be a great way to save money with other insurers. Rather than offering the usual discount, Erie provides biweekly rewards of up to $5 (for adults) or $10 (for youthful drivers), which are redeemable for gift cards or charitable donations.

Erie's rewards are based on your driving habits, and you must drive at least 50 miles. At-home workers like me are less likely to qualify (womp womp). It's a bit uninspiring, to say the least.

Pros

Very high claims satisfaction
Offers a rate lock option to avoid future price increases
Provides first accident forgiveness for customers after three years

Cons

Unimpressive telematics program
Offers fewer discounts than some other insurers
Only available in 12 states and Washington, D.C.

Learn more in our Erie review.

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State Farm

Best for high-risk drivers

Company details

AM Best: A++
J.D. Power claims satisfaction: 710/1,000 (study average 697)
BBB: F
NAIC complaints: 0.84 (Private Passenger)

Like GEICO, State Farm's rates are good even for the riskier drivers out there, which is why I recommend it for people with accidents or incidents in their driving histories. You're likely to beat the national average by going with this insurer for liability-only coverage with an imperfect record, no matter where you live. However, its rates are less competitive for those with DUIs, which is often true no matter the company.

If your record is clean or you're a senior who enjoys the lowest average prices available (and can qualify for a defensive driving discount), State Farm is also a good company to check with when comparing rates between insurers.

Pros

Ranked above average for overall customer satisfaction
Available in 48 states
Large network of agents

Cons

New car insurance policies not offered in Massachusetts or Rhode Island
Doesn't offer GAP insurance

Learn more in our State Farm review.

Allstate

Best for good drivers

Company details

AM Best: A+
J.D. Power claims satisfaction: 691/1,000 (study average 697)
BBB: A+
NAIC complaints: 1.02 (Private Passenger)

Allstate is available in all 50 states, like GEICO, which gives it an edge over some of the other companies on this list. But it's probably going to be the best option for cheap car insurance if you're a careful driver, as its Drivewise telematics program, which tracks your driving to determine how safely you drive, offers savings up to 40%. Many other companies, such as Progressive's Snapshot, offer discounts up to around 20% or maybe 30% for this type of program.

Allstate's rates are a little higher than the other companies I've included on this list, but they still come in well below national averages on the whole. Allstate also differs from other insurers in offering very broad coverage, with unique specialty options such as classic car insurance and rideshare insurance coverage.

Pros

Available in all 50 states
Much broader coverage and more policy options than many companies
Offers a usage-based insurance program (Milewise)

Cons

Higher rates for teen drivers and full coverage than other insurers
Only offers six-month policies
Slightly above-average number of complaints

Learn more in our Allstate auto insurance review.

What does liability-only car insurance cover?

Liability insurance only covers your legal financial responsibility if you hit someone (or something) else in a car crash. It's split up into two parts: bodily injury liability coverage and property damage liability coverage. For example, if you hit someone and send them to the hospital, your bodily injury coverage would pay their medical bills while your property damage coverage would pay for the damage to their car.

Some states require you to carry other types of insurance too. "No-fault" states, like Michigan and New York, generally require you to buy personal injury protection (PIP) to cover your own medical bills and those of your passengers. Some states also require you to buy uninsured and underinsured motorist coverage in case you're hit by someone who doesn't have insurance or doesn't carry enough coverage to fully reimburse you in a bad accident.

Keep in mind that if you finance your car (with a car loan or lease, that is), you'll usually have to pay for comprehensive and collision coverage too. This results in a "full coverage" policy that protects your own car, which your lender or leaseholder has a financial stake in.

Paying for the minimum required coverage is a good way to save money on car insurance premiums, but keep in mind it could end up costing you more in the long run if you get into a car wreck. You could end up footing more of the bill if you or your car are damaged in an accident or if someone sues you for damage that you caused.

How to find the cheapest liability-only coverage in your state

Liability-only car insurance tends to be some of the cheapest car insurance you can buy, but exactly how much it costs — and how much you need — depends on where you live. Each state sets its own minimum requirements, and these state minimums can range from around $20,000 in protection to upwards of $100,000.

Car insurance minimums are broken into a few coverage requirements. These can include:

Bodily injury liability coverage (with both per-person and per-accident minimums)
Property damage liability coverage (per accident)
Personal injury protection (with both per-person and per-accident minimums)

Not all states require personal injury protection (PIP), and some also require uninsured/underinsured motorist coverage. To find the cheapest liability car insurance in your state, start by finding out the minimum amount of coverage you're required, by law, to carry. Then, decide the minimum amount of coverage you'd be comfortable with to choose the right policy.

Car insurance minimum requirements by state

I'll give you an example of what car insurance minimums can look like. In Ohio, the minimum liability coverage you must carry by state law is:

$25,000 for the injury or death of one person
$50,000 for the injury or death of two or more people
$25,000 for property damage

In California, the state minimum requirements are:

$30,000 for the injury or death of one person
$60,000 for the injury or death of two or more people
$15,000 for property damage

These are the minimum coverage requirements. But if the expenses associated with an at-fault accident, like medical bills and vehicle repair costs, exceed those liability limits, you could be responsible for paying the difference. Even if you stick with a liability-only policy, consider higher coverage limits or a lower deductible based on your budget and priorities.

Liability-only vs. full-coverage car insurance costs

Liability-only car insurance covers the basics required by law in most states, protecting other drivers and their property when you're at fault in an accident. This coverage includes bodily injury liability (for medical expenses of others you injure) and property damage liability (for damage to other vehicles or property), but it won't pay a dime to repair or replace your car. Think of it this way — you're covered if you cause damage to someone else, but you're on your own if your car gets totaled, stolen, or damaged by weather. The upside? Liability-only policies are significantly cheaper, often costing hundreds less per year than full coverage.

Full-coverage car insurance, on the other hand, includes liability coverage, as well as comprehensive and collision insurance, which protect your vehicle. Comprehensive insurance covers non-collision incidents like theft, vandalism, hail damage, or hitting a deer, while collision insurance takes care of damage from accidents regardless of who's at fault. You'll pay more, but your car and finances will be more protected. "Full coverage" is a term that refers to more robust coverage and a combination of policies, but it isn't a specific type of policy on its own.

The choice between these options comes down to your car's value, your finances, and your risk tolerance. If you're driving a newer or more expensive vehicle, or if you can't afford to replace your car out of pocket, full coverage could be worth the extra cost. But if you're driving an older car with low value and/or have enough savings to cover repairs or replacement, liability-only might make financial sense.

FAQs

How much should liability-only car insurance cost?

Nationwide, the average driver pays $102 per month for liability-only insurance, according to data published by Insurify. That liability-only rate can vary quite a bit, though, depending on many different factors, especially the state you live in. Iowa drivers typically pay $64 per month, for example, compared to New York drivers who pay $188 per month.

Is it OK to buy just liability car insurance?

Maybe, but it depends on a few factors. Liability car insurance coverage is required in just about every state, but many states require that you carry other coverages too. If you're repaying an auto loan or leasing a car, you'll likely need to carry full coverage car insurance instead. And if you have a lot of assets to protect in a potential lawsuit or you can't absorb the cost of losing your car in an accident, it's good to buy coverage beyond the bare minimum.

What happens if my car is totaled but I only have liability coverage?

If you only carry liability coverage and your car is totaled, you won't receive any money from your own insurer to cover the cost of your lost car. That's what collision or comprehensive coverage is for. Liability coverage will only pay out to someone else if you injure them or damage their property in an accident or if you're sued. If someone hits you, though, you may be able to recoup the cost of your vehicle from the at-fault driver's insurance.

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Bottom line

There are plenty of places to turn for cheap car insurance coverage, but Auto-Owners, USAA, GEICO, State Farm, and Allstate stand out from the rest. Not only do these companies provide some of the lowest rates, but they also offer strong customer experiences and benefits such as broad coverage or a variety of discounts. When shopping for liability-only car insurance, resist the temptation to look only at premiums to find the cheapest option. It's also important to choose an insurer you can trust that offers the exact policy you need.

And as always, I can't recommend getting multiple quotes enough, especially when you're hunting for the best rates.

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