Liability-only auto insurance is the cheapest coverage you can buy. However, it usually only provides the minimum coverage required by state law. In this article, we from the Home Media review team show which major providers offer the cheapest liability car insurance on average. We’ll also examine average liability insurance costs by state and how liability coverage compares to full coverage.
If you are looking for cheap car insurance, we recommend that you get quotes from the best car insurance companies in the industry. It helps to compare car insurance to find the best possible rates.
Cheapest liability auto insurance
If you want cheap car insuranceconsider purchasing only liability coverage that matches your state’s minimum auto insurance requirements.
We’ve researched the cheapest auto insurance companies and the states that have the most affordable liability insurance. The estimates in the sections below are based on a married 35 year old driver with good credit and a clean driving record.
Which companies offer the cheapest car liability insurance?
Based on our research, USAA typically offers the least expensive liability coverage on average viz $28 per month or $333 per year. The next cheapest car liability insurance often comes from Auto-Owners Insurance, which charges an average of €50 $29 per month or $349 per year.
*USAA is only available to active duty military personnel, veterans and members of their immediate family.
Cheapest liability auto insurance by state
By our estimates, it’s the state with the cheapest liability auto insurance Vermont. The average cost of a liability policy in the Green Mountain State is typical $23 per month or $282 per year. Michigan has the most expensive liability insurance, with average rates $133 per month or $1,604 per year.
What is Liability Auto Insurance?
Auto insurance liability covers the cost of property damage and personal injury to another party if you are found guilty of a car accident. Your insurance company will pay the cost of repairs to someone else’s vehicle or the cost of medical bills if the other party is injured.
Each state sets its own minimum coverage required by law, which usually includes some form of liability insurance. Virginia and New Hampshire are the only exceptions, as neither state requires motorists to have auto insurance.
Liability Auto insurance
The coverage amounts for the liability insurance are indicated with three digits. Each number represents one of the following types of liability coverage:
- Personal Injury Liability (BI) per person: This covers medical bills, lost wages, and pain and suffering costs.
- Personal injury liability per accident: This is the maximum amount of personal injury that the insurance company pays out per accident.
- Material liability (PD) per accident: This covers vehicle and other property damage, as well as any cleanup costs associated with the accident. If you are sued, this will also help pay court costs.
An example of a liability insurance policy might be 25/50/25, which would mean you would have $25,000 in personal injury liability coverage per person, $50,000 in accidental bodily injury liability coverage, and $25,000 in property liability coverage per accident.
What does the liability insurance not cover?
Liability auto insurance does not cover damage to your vehicle or costs related to your injuries. Collision insurance covers the cost of repairing your car. Coverage of medical payments (MedPay) or personal injury protection (PIP insurance) covers your medical bills.
If you are found not at fault in the accident, you and your insurance company are not responsible for the property damage or injuries of the other person.
Liability auto insurance versus full coverage auto insurance
A full coverage policy typically includes state-required limits of liability, as well as collision and comprehensive coverage. Some full coverage policies may also include uninsured motorist coverage (UM) as some states require it.
Factors that affect car insurance rates
When calculating car insurance quotes, insurance companies look at several factors to estimate what you will pay.
Here are some items that greatly affect your car insurance rates:
- Place: Drivers in areas with high levels of theft, vandalism, and car accidents tend to pay more for car insurance.
- Age: Insurers consider young drivers a Higher risk than drivers with more experience, hence teen insurance usually costs more.
- Driving record: If you have a good driving history, you are likely to pay less for insurance. Drivers with speeding or DUI convictions often pay much more for coverage.
- Credit history: Insurance companies view drivers with a higher credit score as less likely to make claims than those with poor credit, so drivers with good credit pay lower insurance premiums in most states.
- Sex: Women tend to have fewer accidents and fewer traffic violations than men, so they often pay less for coverage in most states.
- Marital status: Married drivers find cheap auto insurance more easily than single drivers because they are considered safer drivers and more financially stable.
- Vehicle details: Insurers charge higher rates for cars that are more expensive, cost more to repair after an accident and are more likely to be stolen. A vehicle’s safety record also plays a role in determining insurance costs.
- Cover optionsYour auto insurance rates are affected by the type of auto insurance policy you purchase, the amount of coverage you purchase, and the deductible you choose.
To find a more affordable car insurance policy, you can try to boost your credit score and avoid traffic violations. We also recommend asking your carrier about any available ones auto insurance discounts. Some providers offer discounts to good drivers or to policyholders who bundle their car insurance with homeowners or renters insurance.
Cheapest Liability Auto Insurance: Conclusion
The cheapest auto liability insurance policy is usually the minimum level of coverage required by your state to legally drive. Each state has its own requirements, so the cost of liability insurance varies from state to state.
Cheapest Liability Auto Insurance: Recommended Providers
If you’re planning to buy a liability-only auto insurance policy, we recommend looking at policies from USAA and Erie Insurance.
USAA: low rates for military personnel
By researching the best insurance companies in the country, we found that USAA consistently offers some of the lowest auto insurance rates available. In addition to having the cheapest liability coverage on average, USAA offers a wide variety of coverage options, including accident forgiveness and classic car insurance.
USAA also has one A++ rating from AM Best as well as a A review from the Better Business Bureau, demonstrating its financial strength and credibility as a company. Please note that USAA coverage is only available to active duty military personnel, veterans and their immediate family members.
read more: USAA insurance rating
To compare: USAA vs. Geico
Erie Insurance: Affordable for basic coverage
If you live in Washington, D.C. or one of the 12 states that Erie serves, this may be the right choice for cheap car insurance. The company is known for its affordable rates and charges an average of 28% less for both liability and full coverage coverage than the national average.
In addition to low-cost liability coverage, Erie offers a slew of full coverage options and many optional add-ons. The provider has one A+ rating for financial strength from AM Best and a A+ from the BBB.
read more: Erie Insurance assessment
Cheapest Liability Auto Insurance: Frequently Asked Questions
Below are frequently asked questions about the cheapest third-party car insurance.
Because consumers trust us to provide objective and accurate information, we’ve developed an extensive rating system to formulate our ranking of the best auto insurance companies. We’ve collected data from dozens of auto insurers to rate the companies on a wide variety of ranking factors. The end result was a total score per provider, with the insurers with the most points at the top of the list.
Here are the factors our ratings take into account:
- Cost (30% of the total score): Auto insurance estimates generated by Quadrant Information Services and discount opportunities were both considered.
- Coverage (30% of total score): Businesses that offer different options for insurance coverage are more likely to meet consumer needs.
- Reputation (15% of total score): Our research team took into account market share, assessments from industry experts and years of experience when giving this score.
- Availability (10% of the total score): Auto insurance companies with more state availability and few eligibility requirements scored highest in this category.
- Customer experience (15% of total score): This score is based on the number of complaints reported by the NAIC and customer satisfaction ratings reported by JD Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own customer analysis.
*Data correct at time of publication.