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.

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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

Best for affordable coverage

Company details:

AM Best: A++ (Superior)
J.D. Power claims satisfaction: 692 out of 1,000
BBB: A+
NAIC complaints: 61 in 2024

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.

Pros

Auto-Owners had the most affordable average liability-only coverage.
It has multiple policies like GAP and Rental Auto GAP policies.
Auto-Owners has multiple discounts, including several for students.

Cons

It earned a below-average claim satisfaction score from J.D. Power.
Auto-Owners is not available in every state.
You must contact an agent to get a quote.

Learn more in our Auto-Owners review

USAA

Best for military discounts

Company details:

AM Best: A++ (Superior)
J.D. Power claims satisfaction: 726 out of 1,000
BBB: A+
NAIC complaints: 422 in 2024

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.

Pros

USAA has the second most affordable average liability-only coverage.
It offers military-specific discounts, such as saving 15% for storing your car on base.
Its telematics program, SafePilot, can help you save up to 30% for driving safely.

Cons

USAA policies are not available to non-military members.
Some competitors have more coverage options.
It has an above-average number of complaints according to NAIC.

Learn more in our USAA review

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Erie

Best for extra benefits

Company details:

AM Best: A+ (Superior)
J.D. Power claims satisfaction: 733 out of 1,000
BBB: A+
NAIC complaints: 23 in 2024

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.

Pros

Erie has high claims satisfaction scores.
It has various coverage options, including some policy perks like locksmith services.
Erie was more affordable than many other carriers.

Cons

You may find more coverage options with a competitor.
Erie doesn't have as many discounts as some other insurance companies.
Erie's auto coverage is not available nationwide.

Learn more in our Erie Insurance review

GEICO

Best for high-risk drivers

Company details:

AM Best: A++ (Superior)
J.D. Power claims satisfaction: 692 out of 1,000
BBB: A+
NAIC complaints: 53 in 2024

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.

Pros

Geico had lower-than-average customer complaints in NAIC's 2024 complaint index.
It has multiple discounts that can help you lower your insurance premiums.
Geico can file SR-22 forms with the state, which may be required after certain moving violations.

Cons

Geico scored lower-than-average in J.D. Power's 2024 claims satisfaction survey.
Finding a local agent can be challenging, depending on where you live.
Geico does not offer some policies such as GAP insurance.

Learn more in our Geico review

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State Farm

Best for new drivers

Company details:

AM Best: A++ (Superior)
J.D. Power claims satisfaction: 710 out of 1,000
BBB: F
NAIC complaints: 1,854 in 2024

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.

Pros

State Farm earned above-average scores in J.D. Power's claims satisfaction survey.
It has local agents nationwide.
It offers multiple discounts and policy options.

Cons

State Farm doesn't have some specialty coverages like GAP insurance.
It has an F rating with the Better Business Bureau.
You can't get a quote online and must work directly with an agent.

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

When should I get liability instead of full coverage?

Your lender generally requires full coverage car insurance if you have a loan or lease. Additionally, it's a good idea to have full coverage if your car is worth more than you can afford to replace out of pocket. If your vehicle is not worth much, or you're confident you could replace your car without insurance, you may only need to keep liability coverage.

What are the different levels of liability coverage?

The liability coverage levels, or limits, refer to how much your insurance company will cover after an accident. Car insurance companies typically show the limits of your policy as three numbers. For example, you may see 25/50/10 on your insurance policy, which means your insurance company will pay expenses up to $25,000 per person, $50,000 per accident, and $10,000 per property damage claim.

Each state sets minimum coverage limits required to drive legally, but carrying more than your state's minimum is generally wise.

What does 100/300/100 mean?

The numbers on your auto liability policy are the maximum amount, or limit, your insurance carrier will pay after an accident. In this case, your insurance agent will cover up to $100,000 per person, $300,000 per accident, and $100,000 in property damage. If the damages after an accident exceed those amounts, you may have to cover the cost out of pocket.

What is the 50/100/50 rule for liability insurance?

The 50/100/50 rule for liability coverage refers to the most your auto insurance will pay after an accident. The insurer will cover $50,000 per person, $100,000 per accident, and $50,000 in property damage per accident. Whether this is enough coverage depends on your situation and your assets. Choosing higher liability coverage limits can offer more protection, especially if you have a lot of financial assets to protect.

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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.

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Author Details

Kate Daugherty

Kate Daugherty is a writer for FinanceBuzz with a passion for providing others the head start they deserve on their financial journeys. Largely self-taught, Kate relied on books, blogs, and trial-and-error to learn how to budget and save for the future, all while working to pay back about $15,000 in student loans.