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The cheapest car liability insurance costs an average of $28 per month. USAA, Auto-Owners and Erie tend to offer the most affordable average fares
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Written by: Daniel Robinson Written by: Daniel Robinson Author Daniel is a staff writer for Guides and has written for many automotive news sites and marketing companies in the US, UK and Australia specializing in car finance and car care. Daniel is the team leader at Guides for car insurance, loans, warranty options, car services and more.
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Editor: Rashon Michner Editor: Rashon Michner Managing Editor Rashon Michner is a team editor with over 10 years of experience covering personal finance and insurance topics.
Liability-only car insurance is the cheapest coverage you can buy. However, it usually only provides the minimum coverage required by state law. In this article, we at Guides will show you which major providers offer the cheapest car liability insurance on average. We’ll also explore the average cost of liability insurance by state and how liability coverage compares to full coverage insurance.
When looking for cheap auto insurance, we recommend getting quotes from the best auto insurance companies in the industry. It helps to compare car insurance quotes to find the best possible rates.
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The Guides team is committed to providing reliable information to help you make the best possible decision about your car insurance. Because consumers rely on us to provide objective and accurate information, we’ve created a comprehensive rating system to form our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to rank the companies on a wide range of ranking factors. After 800 hours of research, the final result was an overall score for each provider, with insurers receiving the most points at the top of the list.
If you want cheap auto insurance, you may want to consider purchasing liability-only coverage that meets your state’s minimum auto insurance requirements.
We 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 faith and a clean driving record.
Based on our research, USAA generally offers the cheapest liability coverage on average, at $28 per month or $333 per year. The next cheapest auto liability coverage often comes from Auto-Owners Insurance, which charges an average of $29 per month or $349 per year.
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According to our estimates, the state with the cheapest car insurance is Vermont. The average cost of a liability-only insurance policy in the Green Mountain State is typically $23 per month or $282 per year. Michigan has the most expensive liability insurance with prices averaging $133 per month or $1,604 per year.
Car liability insurance covers the cost of property damage and bodily injury to another party if you are found to be at fault in a car accident. Your insurance provider pays for the cost of repairing 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 drivers to have auto insurance.
Liability coverage amounts are indicated by three numbers. Each number represents one of the following types of liability coverage:
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An example of a liability insurance policy might be 25/50/25, which would mean you would have $25,000 in bodily injury liability coverage, $50,000 in personal accident liability coverage, and $25,000 in accident property damage liability coverage.
Car liability insurance does not cover damage to your car or expenses related to your injuries. Collision insurance covers the cost of repairing your car. Medical payments cover (MedPay) or personal injury protection (PIP insurance) covers your medical bills.
If you are not found to be at fault for the accident, you and your insurance company will not be liable for property damage or injuries to the other person.
If you have a car loan or lease, you will likely need to maintain full auto insurance coverage. With this in mind, you should only consider liability car insurance if you own your vehicle.
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You should also remember that comprehensive and collision coverage are better deals when your car is new. As your vehicle ages, the maximum payout you can receive on a claim decreases. When your car is 10 to 12 years old and its total value drops below $10,000, it’s hard to see full coverage insurance as a good deal.
A comprehensive coverage policy usually includes state-mandated liability limits, as well as collision coverage and comprehensive coverage. Some comprehensive policies may also include uninsured motorist (UM) coverage, as required by some states.
Liability-only car insurance often has the lowest rates in the industry – especially with comprehensive coverage. This is because liability coverage does not provide as many types of protection. Here’s how the average annual projections for the two types of coverage compare:
As you can see, it is not uncommon for liability-only car insurance to cost 60% less than a full coverage policy. Again, it’s all about getting what you pay for, as a full coverage car insurance policy offers much more protection than just liability coverage.
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When calculating your car insurance premiums, insurance companies look at several factors to calculate what you will pay.
To find more affordable car insurance, you can improve your credit score and avoid traffic violations. We also recommend asking your provider about any car insurance discounts available. Some providers offer discounts to good drivers or policyholders who combine their car insurance with homeowner’s or renter’s insurance. Discounts for good students and members of various professional organizations are also common.
The cheapest auto liability insurance is usually the minimum level of coverage your state requires to drive legally. Each state sets its own requirements, so the cost of liability-only insurance varies from state to state.
If you are considering purchasing an auto-only liability insurance policy, we recommend checking out the policies offered by USAA and Erie Insurance.
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From researching the top insurance companies in the country, we’ve found that USAA consistently offers some of the lowest auto insurance rates available. In addition to the average cheapest liability coverage, USAA offers a wide range of coverage options that include accident waivers and classic auto insurance.
USAA also holds an A++ rating from AM Best, which demonstrates its financial strength and soundness as a business. Please note that US coverage is only available to active duty military members, veterans and their family members.
If you live in Washington, DC or any of the 12 states served by Erie, this may be the right choice for cheap auto insurance. The company is known for its affordable rates, charging an average of 28% less for both liability and comprehensive coverage than the national average.
In addition to low cost liability coverage, Erie offers a number of comprehensive coverage options and many optional extras. The provider has good financial strength, according to AM Best, which suggests it is likely to pay claims.
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In most states, you need at least $50,000 in bodily injury liability coverage per accident ($25,000 per person) and $25,000 in property damage liability coverage. Some states also require uninsured motorist coverage along with bodily injury coverage or medical payments coverage.
The lowest you can pay for auto insurance is usually the cost of your state’s minimum liability coverage, which varies based on factors like your vehicle and your location. Based on our research, USAA has the cheapest liability auto insurance at an average of $28 per month or $333 per year. Vermont has the lowest average liability insurance rates in the US at $24 per month or $282 per year.
Liability insurance is usually the cheapest car insurance coverage because it only covers the cost of bodily injury and property damage to another party if you are at fault in an accident. It does not cover damage to your vehicle or expenses related to your injuries.
Driving without insurance is illegal in every state except Virginia and New Hampshire. Penalties for being caught driving without insurance vary by location..