Cheapest Companies for Liability Car Insurance
Key auto liability takeaways
- State Farm has the cheapest liability car insurance for most drivers at $55 a month.
- Auto liability covers injuries and damage you cause to others.
- Liability coverage is required by law in almost every state.
Best cheap liability car insurance
Who has the cheapest liability car insurance?
State Farm has the cheapest liability car insurance for most drivers at $661 a year, or $55 a month. USAA is cheaper, but it’s only available to the military community. America Family is the next-cheapest major company after State Farm, at $63 a month.
Liability car insurance rates by company
| Company | Annual rate | LendingTree score | |
|---|---|---|---|
 | State Farm | $661 |  |
 | American Family | $751 |  |
 | Travelers | $792 | |
 | Geico | $797 |  |
 | Progressive | $801 | |
 | Nationwide | $1,024 |  |
 | AAA | $1,086 |  |
 | Amica | $1,120 | |
 | Allstate | $1,344 | |
 | Farmers | $1,363 | |
 | USAA* | $437 | |
Liability car insurance costs an average of $829 a year, or $69 a month.
Your actual rate depends on factors like your driving record, location and vehicle. Each company’s rates vary by customer. This makes it good to compare car insurance quotes from a few different companies to find the cheapest rate.
Cheapest regional companies for auto liability insurance
At $43 a month, Erie has the cheapest liability insurance quotes for regional companies.
Erie is cheaper than State Farm and also has a better satisfaction score — or happier customers.
However, Erie is only available in 12 states Erie is available in IL, IN, KY, MD, NY, NC, Ohio, PA, TN, VA, DC, WV and WI. and the District of Columbia. State Farm is in nearly every state. Auto-Owners Auto-Owners car insurance is available in 26 states: AL, AR, AK, CO, FL, GA, ID, IL, IN, IA, KS, KY, MI, MN, MO, NE, NC, ND, OH, PA, SC, SD, TN, UT, VA and WI. and Farm Bureau Farm Bureau car insurance is available in 31 states. are among the other regional companies with cheap liability insurance rates.
Regional company liability rates
| Company | Annual rate | LendingTree score | |
|---|---|---|---|
 | Erie | $516 | |
 | Auto-Owners | $632 |  |
 | Farm Bureau | $637 | |
 | Country Financial | $679 | |
 | Mercury | $687 | |
 | Grange | $728 | |
Who has the cheapest liability car insurance in my state?
Large companies like State Farm and Geico have the cheapest liability insurance in 31 states. Regional companies like Auto-Owners and Erie are the cheapest companies in 19 states, plus the District of Columbia.
It’s good to compare liability insurance quotes from your state’s cheapest company to others in your area.
Cheapest liability insurance quotes by state
| State | Cheapest company | Cheapest annual rate |
|---|---|---|
| Alabama | State Farm | $432 |
| Alaska | Geico | $548 |
| Arizona | State Farm | $711 |
| Arkansas | State Farm | $414 |
| California | Geico | $505 |
| Colorado | State Farm | $689 |
| Connecticut | Travelers | $569 |
| Delaware | Travelers | $914 |
| Florida | Geico | $468 |
| Georgia | Farm Bureau | $569 |
| Hawaii | Geico | $276 |
| Idaho | State Farm | $233 |
| Illinois | Country Financial | $468 |
| Indiana | Auto-Owners | $424 |
| Iowa | Progressive | $251 |
| Kansas | Progressive | $472 |
| Kentucky | Farm Bureau | $500 |
| Louisiana | Farm Bureau | $690 |
| Maine | MMG | $407 |
| Maryland | State Farm | $742 |
| Massachusetts | Geico | $430 |
| Michigan | Auto-Owners | $949 |
| Minnesota | State Farm | $475 |
| Mississippi | State Farm | $360 |
| Missouri | American Family | $546 |
| Montana | State Farm | $208 |
| Nebraska | Progressive | $382 |
| Nevada | Travelers | $980 |
| New Hampshire | Hanover | $187 |
| New Jersey | Geico | $500 |
| New Mexico | State Farm | $434 |
| New York | NYCM | $475 |
| North Carolina | Erie | $353 |
| North Dakota | State Farm | $371 |
| Ohio | Erie | $340 |
| Oklahoma | State Farm | $440 |
| Oregon | State Farm | $678 |
| Pennsylvania | Erie | $341 |
| Rhode Island | Travelers | $729 |
| South Carolina | Auto-Owners | $634 |
| South Dakota | State Farm | $284 |
| Tennessee | Erie | $468 |
| Texas | Texas Farm Bureau | $404 |
| Utah | Auto-Owners | $813 |
| Vermont | State Farm | $251 |
| Virginia | Farm Bureau | $504 |
| Washington | State Farm | $441 |
| Washington, D.C. | Erie | $794 |
| West Virginia | Erie | $436 |
| Wisconsin | Erie | $343 |
| Wyoming | Geico | $212 |
Best liability car insurance companies
State Farm, Erie and USAA are the best companies for liability car insurance. Along with affordable rates, each company has generally good customer service reviews. These include above-average customer satisfaction ratings from J.D. Power.
Best companies for liability insurance
| Company | Annual rate | Satisfaction rating | LendingTree score |
|---|---|---|---|
| State Farm | $661 | 657 | |
| Erie | $516 | 700 | |
| USAA | $437 | 739 | |
Best overall: State Farm
State Farm’s rates and availability make it the best liability insurance choice for most drivers. You can get personalized service from a State Farm agent in most communities. You can also get quotes from State Farm’s website if you prefer to shop on your own.
The company also offers several discounts that make its rates more affordable. These include a large discount for bundling car insurance with a home or renters policy. Safe driving can get you a discount if you let its Drive Safe & Save app track your driving.
Pros
Cheapest auto liability rates for large companies
Good satisfaction rating from J.D. Power
Several discounts can make its rates more affordable
Cons
Regional companies have cheaper rates in some areas
Best regional company: Erie
Erie charges less for liability insurance than most large companies. It also has a better satisfaction rating than many of them.
Its Rate Lock feature can be especially useful. It protects you from annual rate increases. Although Erie is cheaper than State Farm, State Farm offers more discounts. This may make State Farm a better deal for you.
Pros
Cheaper rates than most large companies
Excellent satisfaction rating from J.D. Power
Rate Lock protects you from annual rate increases
Cons
Not available in every state
Best for military: USAA
USAA’s high satisfaction score shows that it doesn’t cut corners to keep its rates low. You’ll get an even lower rate if you bundle your car insurance with a home or renters policy. USAA also has a discount for drivers who keep their car on a military base during deployments.
USAA’s website and smartphone app make it easy to get quotes and manage your policy. However, you usually talk to a different agent each time you call for help. USAA’s high satisfaction score suggests that its customers don’t mind this arrangement.
Pros
Cheaper liability rates than most other companies
Higher satisfaction rating than every other company
Special perks for active duty military
Cons
You work with a different agent each time you call for help
What does liability car insurance cover?
Liability car insurance policies meet the minimum car insurance requirements in most states.
If you cause an accident, your liability coverage pays your victim’s medical and car repair costs. Your liability insurance does not cover:
- Your own injuries
- Damage to your own car
Liability coverage is required by law in almost every state. Although specific requirements vary by state, they usually include about:
- $20,000 to $30,000 in bodily injury (BI) liability per injured person
- $50,000 to $60,000 in BI liability per accident
- $10,000 to $25,000 in property damage (PD) liability
You can find your state’s specific auto insurance requirements on your DMV’s website.
Liability only car insurance vs. minimum coverage
Liability-only car insurance is sometimes called minimum coverage. However, the two terms are not exactly the same.
Some states require uninsured motorist coverage Uninsured motorist covers you and your passengers for injuries caused by a driver with no insurance. It’s required in about 20 states and optional everywhere else. or personal injury protection PIP covers injuries to you and your passengers, whether you or another driver causes the accident. It also covers lost wages and certain other expenses. (PIP), along with liability coverage. In these states, minimum coverage includes liability plus these other coverages.
How much cheaper is liability insurance than full coverage?
Liability insurance is 61% cheaper than full coverage, which costs an average of $175 a month. Full coverage includes collision and comprehensive, which cover your car for damage and theft.
Collision and comprehensive are not required by law in any state. However, you usually need both for a car loan or lease. Both are usually also good to have if your car is worth more than $5,000 with no loan.
The average costs of liability insurance and full coverage vary by state. If you’re currently paying more than your state’s average for either, it’s a good time to shop around.
Liability vs. full coverage car insurance by state
| State | Liability | Full coverage |
|---|---|---|
| Alabama | $907 | $2,322 |
| Alaska | $544 | $1,694 |
| Arizona | $1,094 | $2,618 |
| Arkansas | $717 | $2,314 |
| California | $700 | $2,017 |
| Colorado | $970 | $2,892 |
| Connecticut | $1,160 | $2,325 |
| Delaware | $1,407 | $2,758 |
| Florida | $1,216 | $3,267 |
| Georgia | $963 | $2,194 |
| Hawaii | $531 | $1,484 |
| Idaho | $460 | $1,330 |
| Illinois | $894 | $2,146 |
| Indiana | $574 | $1,560 |
| Iowa | $500 | $1,901 |
| Kansas | $682 | $2,099 |
| Kentucky | $978 | $2,378 |
| Louisiana | $1,042 | $2,989 |
| Maine | $543 | $1,243 |
| Maryland | $1,083 | $2,034 |
| Massachusetts | $612 | $1,740 |
| Michigan | $1,597 | $3,151 |
| Minnesota | $809 | $2,037 |
| Mississippi | $694 | $1,968 |
| Missouri | $746 | $2,041 |
| Montana | $586 | $2,218 |
| Nebraska | $570 | $1,933 |
| Nevada | $1,559 | $3,439 |
| New Hampshire | $575 | $1,278 |
| New Jersey | $1,266 | $2,384 |
| New Mexico | $688 | $2,037 |
| New York | $1,141 | $2,274 |
| North Carolina | $831 | $1,672 |
| North Dakota | $584 | $1,897 |
| Ohio | $565 | $1,373 |
| Oklahoma | $752 | $2,400 |
| Oregon | $1,137 | $2,218 |
| Pennsylvania | $650 | $2,060 |
| Rhode Island | $1,184 | $2,838 |
| South Carolina | $802 | $1,812 |
| South Dakota | $448 | $2,070 |
| Tennessee | $649 | $1,887 |
| Texas | $808 | $2,184 |
| Utah | $1,148 | $2,266 |
| Vermont | $428 | $1,283 |
| Virginia | $858 | $1,684 |
| Washington | $749 | $1,909 |
| Washington, D.C. | $1,097 | $2,371 |
| West Virginia | $716 | $1,788 |
| Wisconsin | $522 | $1,616 |
| Wyoming | $372 | $1,491 |
How to get cheaper liability-only car insurance
Shopping around and taking advantage of car insurance discounts are good ways to get cheaper liability car insurance.
Why shop around for car insurance?
Shopping around for car insurance helps you find the cheapest current rates. Insurance companies often change the way they set your rate. A company that offered you a higher rate a few years ago may be a cheaper option today.
Your own rate qualifications can also change from time to time. You may get better rates now than you did before if:
- Your credit has recently improved
- Two or three years have passed since your last ticket or accident
Best discounts for liability car insurance
The various discounts insurance companies offer can add up to big savings. You can usually save the most by:
- Bundling policies: Most companies give you a generous discount for combining auto liability with a home or renters policy.
- Joining a safe driver program: Several companies give you a discount for using their safe-driving app that tracks your driving. The safer you drive, the more you save.
- Getting good grades: Several companies give young drivers a good-student discount for getting a B average or better. Allstate only requires a B- average.
- Taking a driving course: A driver training program often gets young drivers a discount. Older drivers often get a discount for taking a defensive driving course.
Frequently asked questions
At $55 a month, State Farm has the cheapest liability car insurance for most drivers. Erie is cheaper, but it’s only in 12 states and the District of Columbia. USAA is cheapest overall, but only available to military families.
Liability-only car insurance is a policy that only covers injuries and damage you cause to others. In most states, this is all you need to drive legally. Some states also require other coverages like uninsured motorist and personal injury protection. These coverages are automatically included in your policy in states where they are required.
Liability-only car insurance may be all you need if your car is paid off and not worth much. It doesn’t provide much financial protection, but it lets you drive legally. If you have a car loan, your lender will require you to get full coverage.
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