Cheapest Liability-Only Car Insurance

GEICO typically offers the cheapest liability-only coverage for most drivers, at average rates of about $45 per month or $543 per year for state liability coverage.

To find the cheapest liability-only car insurance rates, the MoneyGeek insurance team analyzed 83,056 quotes from 45 companies across 473 ZIP codes. Our analysis was based on data we collected from state insurance departments and the latest rates available from Quadrant Information Services.

Although GEICO is cheapest for most drivers, the lowest rate available to you depends on your unique situation. We’ve highlighted the lowest average rates for each driver profile below:

Along with GEICO, Travelers, Progressive, State Farm and Nationwide also offer affordable liability-only coverage. Use the table below to compare average liability-only rates and coverage levels across top insurers.

As the table below displays, the state you live in has a significant impact car insurance rates. Here are the companies with the cheapest averages for minimum coverage policies for each state.

Drivers with a clean record typically pay less for car insurance than those with a ticket, at-fault accident or DUI on record. That's because insurers perceive drivers with violations as riskier to insure. Rates vary across each major high-risk category.

State Farm offers the cheapest liability-only coverage for drivers after a speeding ticket, with average rates of $650 per year or $54 per month. See the table below to compare providers offering liability-only coverage for drivers with a speeding ticket.

With rates averaging $719 per year ($60 per month), State Farm provides the cheapest liability-only coverage for drivers after an at-fault accident. The table below shows a list of major insurers offering affordable coverage for at-fault drivers.

For drivers with a DUI or DWI, Progressive offers the cheapest rates for liability-only coverage, averaging $679 per year ($56 per month). Check the table below for a list of insurance providers and their average annual pemiums for drivers with DUIs.

Insurers may use a credit-based insurance score to calculate insurance premiums in all states except California, Hawaii, Massachusetts and Michigan. With rates averaging $865 per year, Nationwide is the cheapest company offering minimum liability-only coverage for drivers with poor credit.

Age is one of the most important considerations when determining the cost of car insurance. Insurers tend to charge higher rates to teens, younger drivers and drivers over 75 due to inexperience or perceived risk. Despite these higher premiums, finding inexpensive car insurance for these age groups is still possible.

According to the National Safety Council, 16- to 19-year-olds make up 3.5% of total drivers but they're involved in almost 9% of crashes. Although this contributes to higher auto insurance rates, teens and young drivers can often find the cheapest liability coverage when added to a family policy. Below are the cheapest liability rates available for family policies that include young drivers:

Although rates tend to decrease as you age, premiums typically rise again for seniors because drivers aged 65 and older account for nearly 10% of crashes. Below are the cheapest average minimum coverage rates for senior drivers.

The cheapest car to insure with state-minimum liability-only insurance is the Mazda CX-5, which costs $364 per year from Nationwide. The Ford Expedition is the most expensive on the list to insure, costing about $384 per year.

Average liability-only car insurance costs range from $615 to $914 per year, depending on several factors. One of the biggest determining factors is the liability limits you choose.

Estimating how much car insurance you need depends on your state's limits, your car's value and your budget. A policy with 100/300/100 liability limits is popular with most drivers, but industry experts recommend purchasing a policy with the highest limit you can afford. Know that there are significant financial risks with getting the lowest possible amount of coverage — like paying thousands out of pocket after an accident.

Regardless of your coverage limits, liability-only car insurance tends to be significantly cheaper than full coverage. This is because full coverage has added comprehensive and collision insurance, which financially protects your vehicle after a covered incident.

Although it's more expensive, experts recommend full coverage insurance to avoid higher out-of-pocket costs for repair. In the table below, we compared average rates for a minimum coverage policy and full coverage policy (with a $1,000 deductible) from different leading companies.

Liability-only insurance won’t cover your vehicle if you cause an accident or if your vehicle incurs damages outside your control. Adding comprehensive and collision insurance to create a full coverage policy provides additional financial protection against expenses from repairs and replacements resulting from an at-fault or single-car collision.

If you're unsure whether to choose a liability-only policy or full coverage policy, we highlight scenarios below that help you consider the costs, associated risks and when each coverage level is more appropriate.

If you have an old, lower-value car that is worth equal to or less than what you would pay for full coverage, adding comprehensive and collision policies wouldn’t be worth it. You’d be better off buying liability-only insurance.

For example, say your car is worth less than $1,500 and you pay $500 per year for a collision policy that includes a $1,000 deductible. In this scenario, if you got into an accident that resulted in you paying the entire deductible, your $1,500 annual cost would exceed the vehicle's value.

If you own a newer, more valuable vehicle that's worth the cost of insuring it, you should consider buying comprehensive and collision insurance in addition to liability insurance. In many cases, your lender may require you to purchase a full coverage policy if you take out a loan or lease.

Although liability-only policies tend to be less expensive on average, most experts will recommend buying full coverage car insurance to ensure adequate financial protection due to the associated risks.

In this guide, we looked at the cheapest minimum liability providers across every major driver segment. Additionally, we provided helpful tips on how to find the cheapest liability-only insurance and when liability-only coverage is and isn't appropriate based on your risk profile.

Below are some frequently asked questions and answers about liability-only car insurance:

MoneyGeek gathered and analyzed rates using a sample driver profile to determine company averages for the cost of liability-only insurance, how liability-only rates compare to full coverage rates and how rates may change for risky driver profiles (drivers with at-fault accidents and tickets).

Data Sources and Depth

We collected data from state insurance departments and Quadrant Information Services and analyzed 83,056 quotes from 46 companies across 473 ZIP codes.

Sample Driver Profile

To determine overall average annual car insurance rates, we used the following sample driver profile:

• 40-year-old male driver
• Driving a Toyota Camry LE
• No on-record violations

We modified this sample profile by age, driving record and car make/model where specified to provide average rates for a variety of drivers.

Coverage Levels Explained

Rates collected were for policies meeting the minimum requirements in a given state or for increased liability coverage. Increased liability coverage refers to a policy with 50/100/50 liability limits, which is shorthand for the following:

• $50,000 in bodily injury liability per person
• $100,000 in bodily injury liability per accident
• $50,000 in property damage liability per accident

You can choose how much liability coverage you want on either a liability-only or full coverage policy. The difference between liability-only and full coverage insurance is the addition of comprehensive and collision coverage. A liability-only policy does not include comprehensive and collision coverage.