Cheapest Liability Car Insurance (2024)
- Expertise: Auto insurance, home insurance and renters insurance
- Education: University of California-Berkeley (BA in History)
Rob Bhatt is a licensed insurance agent and joined the staff of Lending Tree in 2021. Previously, he spent more than 20 years writing for and editing regional publications in California, Nevada and Washington. Rob enjoys helping readers understand how different coverages work so they can make informed purchasing decisions, and he specializes in producing research-backed content for LendingTree about auto, home and renters insurance. His work has been cited by ABC, Business Insider, MSN and Yahoo.
State Farm has the cheapest liability-only car insurance rates among major companies at an average rate of $597 a year.
You may find an even better rate from a smaller company, depending on where you live.
Savings Tips
Among national car insurance companies, State Farm, Geico and American Family offer the cheapest liability rates for most drivers.
Raising your deductible, comparing quotes and keeping a good driving record can drive your rate down.
Liability-only coverage rates can range from $351 a year in South Dakota to $1,849 in Michigan.
Which company offers the cheapest liability car insurance?
Hanover and MMG offer the cheapest average car insurance rates at $336 and $375 a year respectively. However, these companies are not available nationally. Among major companies, State Farm has the cheapest liability-only rates. Its rates average $597 a year, or $50 a month.
| Company | Annual rate |
|---|---|
| Hanover | $336 |
| MMG | $375 |
| USAA* | $412 |
| Grinnell Mutual | $421 |
| Co-Op | $437 |
| Westfield | $439 |
| Acuity | $478 |
| Concord | $478 |
| Erie | $497 |
| Mercury | $511 |
| Auto-Owners | $516 |
| Farm Bureau | $548 |
| Grange | $570 |
| State Farm | $597 |
| Country Financial | $623 |
| Arbella | $720 |
| Geico | $727 |
| American Family | $728 |
| Shelter | $762 |
| Progressive | $791 |
| Travelers | $835 |
| Plymouth Rock | $853 |
| Nationwide | $963 |
| The Hartford | $1,007 |
| Amica | $1,098 |
| Allstate | $1,158 |
| Farmers | $1,188 |
| Safeway | $1,391 |
| AAA | $1,520 |
| UAIC | $1,577 |
| NJM | $3,125 |
*USAA is only available to current and former military members and their families.
Who has the cheapest liability car insurance in my state?
Although Hanover and MMG offer the cheapest car insurance rates nationally, you may find cheaper rates with other insurance companies depending on where you live.
State Farm has the cheapest liability car insurance in 18 states, while Geico is the cheapest in seven states, plus Washington, D.C.
| State | Cheapest company | Annual rate |
|---|---|---|
| Alabama | State Farm | $313 |
| Alaska | State Farm | $551 |
| Arizona | State Farm | $660 |
| Arkansas | State Farm | $377 |
| California | Geico | $425 |
| Colorado | State Farm | $519 |
| Connecticut | State Farm | $713 |
| Delaware | Travelers | $858 |
| Florida | Geico | $469 |
| Georgia | Auto-Owners | $500 |
| Hawaii | Geico | $364 |
| Idaho | State Farm | $227 |
| Illinois | State Farm | $521 |
| Indiana | Auto-Owners | $339 |
| Iowa | State Farm | $237 |
| Kansas | Farm Bureau | $427 |
| Kentucky | Travelers | $800 |
| Louisiana | Farm Bureau | $666 |
| Maine | State Farm | $363 |
| Maryland | Geico | $803 |
| Massachusetts | Hanover | $484 |
| Michigan | Auto-Owners | $1,134 |
| Minnesota | State Farm | $484 |
| Mississippi | State Farm | $344 |
| Missouri | Progressive | $474 |
| Montana | Geico | $432 |
| Nebraska | Farmers | $302 |
| Nevada | State Farm | $753 |
| New Hampshire | Hanover | $187 |
| New Jersey | Geico | $583 |
| New Mexico | State Farm | $393 |
| New York | Progressive | $627 |
| North Carolina | Erie | $317 |
| North Dakota | American Family | $292 |
| Ohio | State Farm | $309 |
| Oklahoma | Progressive | $343 |
| Oregon | State Farm | $651 |
| Pennsylvania | Erie | $338 |
| Rhode Island | Travelers | $729 |
| South Carolina | Auto-Owners | $512 |
| South Dakota | Auto-Owners | $234 |
| Tennessee | Farm Bureau | $394 |
| Texas | Texas Farm Bureau | $401 |
| Utah | Auto-Owners | $615 |
| Vermont | State Farm | $229 |
| Virginia | Erie | $450 |
| Washington | State Farm | $401 |
| Washington DC | Geico | $657 |
| West Virginia | Erie | $399 |
| Wisconsin | Erie | $293 |
| Wyoming | Geico | $212 |
How much does liability car insurance cost?
The average cost of liability car insurance is $776 a year, or $65 a month. Average rates range from $351 a year in South Dakota to $1,849 in Michigan.
Car insurance rates can vary by state due to factors like different state coverage requirements, accident rates and crime rates.
| State | Annual rate |
|---|---|
| Alabama | $717 |
| Alaska | $663 |
| Arizona | $1,079 |
| Arkansas | $622 |
| California | $571 |
| Colorado | $897 |
| Connecticut | $1,088 |
| Delaware | $1,283 |
| Florida | $1,206 |
| Georgia | $790 |
| Hawaii | $609 |
| Idaho | $413 |
| Illinois | $848 |
| Indiana | $533 |
| Iowa | $444 |
| Kansas | $616 |
| Kentucky | $1,183 |
| Louisiana | $948 |
| Maine | $501 |
| Maryland | $1,093 |
| Massachusetts | $757 |
| Michigan | $1,849 |
| Minnesota | $743 |
| Mississippi | $662 |
| Missouri | $686 |
| Montana | $574 |
| Nebraska | $470 |
| Nevada | $1,368 |
| New Hampshire | $537 |
| New Jersey | $1,393 |
| New Mexico | $632 |
| New York | $1,059 |
| North Carolina | $532 |
| North Dakota | $522 |
| Ohio | $532 |
| Oklahoma | $656 |
| Oregon | $1,092 |
| Pennsylvania | $603 |
| Rhode Island | $1,213 |
| South Carolina | $803 |
| South Dakota | $351 |
| Tennessee | $505 |
| Texas | $696 |
| Utah | $989 |
| Vermont | $417 |
| Virginia | $715 |
| Washington | $651 |
| Washington, D.C. | $949 |
| West Virginia | $659 |
| Wisconsin | $503 |
| Wyoming | $370 |
In no-fault insurance states like Florida, New Jersey and New York, liability policies also include personal injury protection (PIP). Liability policies include uninsured motorist coverage in states that require this coverage.
Liability vs. full-coverage car insurance costs
Liability car insurance costs 61% less than full-coverage car insurance, on average. Full coverage includes higher liability limits as well as collision and comprehensive coverage, which protects your own vehicle.
| Company | Liability coverage | Full coverage | Cost difference |
|---|---|---|---|
| Hanover | $336 | $1,372 | $1,036 |
| MMG | $375 | $902 | $527 |
| USAA | $412 | $1,203 | $791 |
| Grinnell Mutual | $421 | $2,015 | $1,594 |
| Co-Op | $437 | $1,635 | $1,198 |
| Westfield | $439 | $1,481 | $1,042 |
| Acuity | $478 | $1,361 | $883 |
| Concord | $478 | $977 | $499 |
| Erie | $497 | $1,270 | $773 |
| Mercury | $511 | $1,596 | $1,085 |
| Auto-Owners | $516 | $1,690 | $1,174 |
| Farm Bureau | $548 | $1,931 | $1,383 |
| Grange | $570 | $1,638 | $1,068 |
| Safety | $571 | $1,392 | $821 |
| State Farm | $597 | $1,487 | $890 |
| Country Financial | $623 | $1,600 | $977 |
| Arbella | $720 | $1,629 | $909 |
| Geico | $727 | $1,937 | $1,210 |
| American Family | $728 | $1,920 | $1,192 |
| Shelter | $762 | $1,927 | $1,165 |
| Progressive | $791 | $2,032 | $1,241 |
| Travelers | $835 | $1,919 | $1,084 |
| Plymouth Rock | $853 | $2,236 | $1,383 |
| Nationwide | $963 | $2,226 | $1,263 |
| The Hartford | $1,007 | $2,688 | $1,681 |
| Amica | $1,098 | $2,548 | $1,450 |
| Allstate | $1,158 | $2,609 | $1,451 |
| Farmers | $1,188 | $3,091 | $1,903 |
| Safeway | $1,391 | $3,080 | $1,689 |
| AAA | $1,520 | $3,835 | $2,315 |
| UAIC | $1,577 | $2,886 | $1,309 |
| NJM | $3,125 | $3,382 | $257 |
What is liability car insurance?
Liability-only car insurance is auto coverage that pays for injuries and property damage you cause to others in a car accident. Liability coverage is broken down into two parts:
- Bodily injury liability coverage: Bodily injury coverage helps pay for medical costs of someone injured in an accident you caused.
- Property damage liability coverage: Property damage coverage helps pay for another vehicle or any property you damaged in an accident.
If you need to dispute a liability claim against you, your car insurance company also covers the costs of your legal defense.
Almost every state requires you to have liability coverage. Several states require other coverages, too.
What does liability car insurance not cover?
Liability car insurance doesn’t cover your own injuries or damage to your own vehicle. To cover these costs, you can add these coverages to your car insurance policy:
- Collision coverage: Collision covers damage your vehicle sustains in a collision with another vehicle or object, or if it overturns.
- Comprehensive coverage: Comprehensive covers your vehicle for theft or damage from non-collision causes, like fires, floods, falling objects and vandalism.
You may also need to buy these types of car insurance coverage in some states:
- PIP and medical payments (MedPay): These coverages protect you if you and your passengers are injured in a car accident, regardless of fault. PIP is required in about a dozen states. PIP and/or MedPay are optional in most other states.
- Uninsured motorist protection: This covers injuries you and your passengers suffer in an accident caused by a driver without insurance. About 20 states require this coverage, and it’s optional in most others.
How much liability car insurance do I need?
The amount of liability car insurance you need to drive legally varies by state. However, the minimum liability limits your state requires may not provide enough financial protection, regardless of where you live.
If the amounts needed to cover an accident victim’s injuries or car repairs are higher than your policy’s liability limits, you may need to pay the difference. This could put your savings or other assets at risk.
Choosing liability limits that match your net worth protects your assets if you cause severe injuries or damage in an accident.
If you have a high net worth and/or a high salary, consider buying an umbrella policy for more protection.
How can I get cheaper liability car insurance?
There are several ways to lower your liability car insurance rate:
- Compare quotes from multiple companies: Since insurance company rates vary by customer, it’s important to compare quotes from multiple companies to find the cheapest liability car insurance for you.
- Take advantage of discounts: Insurance companies offer a variety of discounts, including multi-policy discounts, claims-free discounts and good student discounts.
- Keep a good driving record: If you have any violations on your driving record, your car insurance rate can go up. Some insurance companies also offer a safe driving program that customizes your rates based on your driving habits.
Methodology
LendingTree obtains rates from insurance company filings reported to Quadrant Information Services. Rates shown in this article are based on an analysis of thousands of car insurance quotes for sample drivers in every state. Your rates may vary.
Unless stated otherwise, our sample driver is a 30-year-old man with good credit and no tickets, accidents or DUIs driving a 2015 Honda Civic EX.
Minimum-liability policies provide liability coverage with the state’s required minimum limits.
Full-coverage policies include the following limits and deductibles:
- Bodily injury liability: $50,000 per person, $100,000 per accident
- Property damage liability: $25,000
- Collision: $500 deductible
- Comprehensive: $500 deductible