Best Liability Coverage Car Insurance [2025]: Which Company Protects Me Most?

Liability coverage is one of the most important types of auto insurance you can have. It protects you by paying for the other person's injuries or property damage when you are at fault in an accident. Without it, you may have to pay out of pocket for any damage or injuries you cause.

Comparing liability coverage car insurance pricing with multiple companies is a smart move to help you get the best deal. But price isn't the only thing that matters. Factors like customer claim satisfaction, policy options, and availability are also important.

For example, a company like USAA has relatively low prices and often earns high customer satisfaction marks, but not everyone qualifies for their coverage. Similarly, Auto-Owners Insurance offers the most affordable liability-only policies but is not available nationwide. Other carriers, like State Farm and Geico, may be more expensive but may be cheaper in the long run for young or high-risk drivers.

How we evaluate products

FinanceBuzz uses multiple factors when comparing auto insurance companies. These include cost and discounts, complaints and customer satisfaction, policy options, and ease of use. We also gather information from sites such as Insurify, J.D. Power, AM Best, the National Association of Insurance Commissioners (NAIC), and the Better Business Bureau (BBB).

Cheapest liability-only insurance

• Auto-Owners
• USAA
• Erie
• GEICO
• State Farm

Company name	Best for	Average monthly liability-only cost
Auto-Owners	Affordable coverage	$31
USAA	Military discounts	$46
Erie	Policy perks	$49
GEICO	High-risk drivers	$52
State Farm	Young drivers	$102
Mile Auto	Pay-per-mile insurance	$53
Allstate	Policy options	$59
Metromile	Low-mileage drivers	$60
Root	Personalized rates	$64
American Family	Bundling policies	$68

Auto-Owners

Auto-Owners Insurance offers the cheapest liability-only policies among major carriers. It averages just $31 a month. Auto-Owners is a mutual insurance company that provides auto, life, and property insurance. It offers bodily injury and property damage liability policies and other options such as collision, comprehensive, and diminished value insurance.

Auto-Owners had a relatively low number of customer complaints in 2024 but below-average claims satisfaction ratings from J.D. Power. Additionally, its car insurance is only available in 26 states, and it only provides policies through independent agents.

Learn more in our Auto-Owners review

USAA

USAA is generally known for affordable car insurance and is on lists of the best car insurance companies. It has one of the highest claim satisfaction ratings in J.D. Power's 2024 survey, scoring 726 out of 1,000. Additionally, it has the second-most affordable rate according to Insurify, averaging $46 per month, for just liability coverage.

However, one of USAA's biggest drawbacks is that it's unavailable to the general public. It only offers policies to active-duty military personnel, veterans, National Guard members, reservists, and other military members. Additionally, spouses and children of USAA members are also eligible.

Learn more in our USAA review

Erie

Erie Insurance is a little more expensive than USAA or Auto-Owners' liability-only coverage, averaging $49 per month. It is also only available in 12 states and Washington, D.C., and you must request a quote through an agent.

However, despite being the cheapest, Erie had the highest claims satisfaction score on our list, earning 733 out of 1,000 in J.D. Power's 2024 survey. It also had lower-than-average customer complaints in 2024 according to the NAIC complaint index.

What I like most about Erie Insurance is the extra perks included in some policies. For example, its comprehensive coverage provides locksmith services and auto glass repair, which waives the deductible for repairs. Erie's coverage will also cover up to $500 per pet (total limit of $1,000) of your pet's vet bills if they are injured in a car accident.

Learn more in our Erie Insurance review

GEICO

Geico is a more expensive option for liability-only car insurance, but it still averages a monthly cost of $52. However, if you're a high-risk driver with a DUI, speeding tickets, or multiple accidents on your record, you may find a better rate using Geico than with other insurance companies.

Drivers with a DUI who use Geico paid an average of $85 a month for liability-only insurance, compared to $155 monthly for Progressive's coverage. Geico can also file an SR-22 form to prove that you have car insurance meeting your state's minimum requirements.

Learn more in our Geico review

State Farm

If you have a young driver and are looking for ways to lower your car insurance, consider State Farm. State Farm's liability-only coverage averages $102 a month. However, you may find a lower rate when adding a teen driver to your policy using State Farm, especially when combined with their new driver discounts.

If your high school or college student maintains a 3.0 GPA, you can save up to 25% through the Good Student Discount. You may also qualify for a discount if your student takes a driver's education course or doesn't take their car with them when they move away to school.

Learn more in our State Farm review

What is liability coverage?

Liability coverage protects you financially if you are found at fault (i.e., legally responsible) after an accident. Nearly every state requires you to have auto liability insurance, and each state sets its minimum amounts of insurance or other financial security requirements.

An auto liability policy typically has two components: bodily injury liability and property damage liability.

Bodily injury liability covers the medical expenses and lost wages for the person injured in a car accident. Sometimes, it may also help pay for your legal fees if the other driver sues you after the accident.

Bodily injury liability limits generally contain two parts.

• Per-person limit: The first number is the most your bodily liability coverage will pay per person injured in an accident and is limited by the per-accident limit.

• Per-accident limit: This is the most your coverage will pay per accident. So even if the other person's medical bills exceed your coverage amount, your insurance company won't pay more than the stated limit. You may be responsible for making up the difference.

Similarly, property damage liability covers any damage you cause to someone else's property after an accident. That might be the other driver's vehicle, but it can also pay for damage to a home or other building, fences, street signs, or other property that doesn't belong to you.

Typically, liability coverage only covers third-party expenses like those of the other driver in an accident. It does not cover any of your medical costs or damages to your vehicle. For that, you would need other insurance policies, such as collision or comprehensive coverage and medical payments (MedPay) or Personal Injury Protection (PIP) insurance.

If you are found responsible for an accident and don't have enough liability insurance to cover the damages, you may have to cover any remaining expenses out of pocket.

FAQs

Bottom line

Having enough liability insurance is a vital part of your financial well-being. It's generally wise to carry more than your state's minimum limits if you can afford to. As you search for new car insurance with liability coverage, consider factors beyond price such as customer satisfaction, policy options, and discounts.

Compare pricing from at least three companies to help you save money on car insurance, and consider working with an agent to help you ensure your coverage fully protects you and your family.