Cheapest Liability-Only Car Insurance Companies [2024]: Get Insured for Less

INSURANCE - CAR INSURANCE
The state you live in most likely requires you to carry liability car insurance. Here are the cheapest companies.
Updated April 7, 2023
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Liability car insurance helps pay for medical care for an injured person and vehicle repairs for a car accident where you’re at fault. Most U.S. states have laws requiring drivers to carry liability car insurance.

You can typically save money on your premiums by carrying liability-only car insurance. But what companies offer the cheapest liability-only car insurance? We’ve looked at some of the cheapest companies for liability-only coverage and compared their offerings to help you decide the best option for you.

In this article

Key takeaways

  • Liability insurance covers the other driver's injuries and property damages in an accident in which you’re found at fault.
  • Most states require all drivers to carry liability insurance.
  • Insurers offering the cheapest liability-only insurance may not be available in your state.

The 10 cheapest car insurance companies for liability-only coverage

  1. Auto-Owners
  2. Erie Insurance
  3. Farm Bureau
  4. USAA
  5. Travelers
  6. State Farm
  7. GEICO
  8. American Family
  9. Allstate
  10. Progressive

Cheapest liability-only car insurance comparison

Best for Company Average monthly premium
Personalized service Auto-Owners $32
Customer satisfaction Erie $35
Farm Bureau members Farm Bureau $42
Military members USAA $50
Discounts Travelers $64
Reputation State Farm $68
Mobile app access GEICO $73
Safe drivers American Family $102
Teen drivers Allstate $108
Customizable policies Progressive $108

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1. Best for personalized service: Auto-Owners

Pros Cons
  • High financial rating with AM Best
  • Personalized one-on-one service with local, independent agents
  • Quotes only available through an agent, not online
  • Not available in all states

Auto-Owners Insurance Group was established in 1916 and today provides insurance to about 3 million policyholders in 26 states across the country. If you like getting personalized, one-on-one service from your car insurance agent, Auto-Owners could be a good option.

Why we like it: Auto-Owners is offered through independent insurance agents. Independent agents work with multiple insurance companies, which means they can get car insurance quotes from multiple companies to help you get the best coverage.

What we don’t like about it: Unfortunately, Auto-Owners doesn’t offer an online quote process. To get a quote for car insurance, you need to contact a local agent, and agents are only located in 26 states. People who prefer in-person service may not have a problem with that, but this is a drawback if you want to get a quick online quote.

Read our full Auto-Owners review.

2. Best for customer satisfaction: Erie

Pros Cons
  • Excellent customer satisfaction ratings
  • Low number of customer complaints
  • Many types of coverage available
  • Only available in 12 states and Washington, D.C.

Established in 1925, Erie Insurance provides cheap liability-only car insurance and other coverages for drivers who live in the Midwest and the mid-Atlantic regions of the U.S. The insurer is available in 12 states in those regions along with D.C.

If you are lucky enough to live in a state where Erie Insurance is available, it may be a good option for your car insurance. According to the J.D. Power 2022 U.S. Auto Claims Satisfaction Study, Erie Insurance ranks third in customer satisfaction. Erie also has less than the average number of customer complaints with the National Association of Insurance Commissioners (NAIC).

Why we like it: Erie Insurance has the second-lowest rate for liability-only coverage and keeps its customers happy. It also offers many different types of coverage if you decide to opt for more than the minimum coverage.

What we don’t like about it: Erie Insurance is only available in 12 states, which limits the number of drivers who can take advantage of its low prices and customer service.

Read our full Erie review.

3. Best for Farm Bureau members: Farm Bureau

Pros Cons
  • Offers several discounts
  • Very low number of customer complaints
  • Available to paying members only
  • Operates primarily through local agents

Farm Bureau is a membership-based financial services organization that offers insurance for auto, home, life, business, health, and farm and ranch. When Farm Bureau was founded in 1939, it primarily provided insurance for local farmers. Since then, the insurer has expanded to offer many insurance and financial products to people in all 50 U.S. states, Washington, D.C., and Puerto Rico.

Farm Bureau provides cheap liability-only car insurance as well as other standard coverage types, such as collision, comprehensive, and uninsured motorist coverage. The insurer also offers several discount options, including its Driveology program, where a small device is placed in your car to monitor your driving and reward you for safe driving.

Why we like it: Farm Bureau offers several discounts to help you save even more money. Discounts vary by state but could include discounts on farm equipment and machinery and travel discounts.

What we don’t like about it: Farm Bureau’s car insurance is available only to members, and memberships cost at least $20 annually. That could cut into the money you may able to save with discounts.

Read our full Farm Bureau review.

4. Best for military members: USAA

Pros Cons
  • Available in all U.S. states and many overseas locations
  • Ranked above average on overall customer satisfaction
  • Many discounts available
  • Only available for members of the military and their families

Coming in fourth for average liability-only car insurance rates is United Services Automobile Association (USAA), which provides car insurance to military members and their families. If you don’t have a military connection, you can’t get car insurance through USAA.

Why we like it: USAA provides several discounts for drivers to save money on their car insurance premiums, including a USAA SafePilot driving tracking discount and a discount for garaging your car on a military base.

What we don’t like about it: USAA car insurance is available only to current and veteran military members and their families.

Read our full USAA review.

5. Best for discounts: Travelers

Pros Cons
  • Many coverage types available
  • Tons of discounts
  • Low ranking for customer satisfaction
  • Car insurance not available in all states

Travelers Insurance has been in business for more than 165 years. The company offers cheap liability-only insurance and many other options, from collision coverage and comprehensive coverage to new car replacement and non-owner insurance. However, coverage is not available in all states.

Why we like it: Travelers provides a multitude of discounts that may help you save money on your car insurance. The company’s IntelliDrive app enables you to monitor your driving habits over three months, and if you prove you’re a safe driver, you may qualify for a discount of up to 30% off your car insurance premiums.

You can also get a discount on Travelers car insurance if you’re affiliated with certain employers, credit unions, and associations.

What we don’t like about it: Travelers is ranked below average for overall customer satisfaction on auto claims, according to J.D. Power.

Read our full Travelers review.

6. Best for reputation: State Farm

Pros Cons
  • Ranked above average for overall customer satisfaction
  • Outstanding financial strength
  • Large network of agents
  • Not available in Massachusetts or Rhode Island
  • Doesn’t offer gap insurance

State Farm has been providing car insurance for more than 100 years. It offers liability-only car insurance protection as well as other standard coverage such as collision insurance, comprehensive, medical payment coverage, personal injury protection (PIP), and more.

State Farm offers numerous discounts to help you save money, especially for good drivers. You can also get discounts by bundling your car insurance with State Farm homeowners, condo, or renter’s insurance.

Why we like it: State Farm has established itself as a leader in the car insurance industry in the more than 100 years it has been in business. J.D. Power ranks State Farm above average for its overall satisfaction with claims, and the insurer has an excellent A++ financial rating from AM Best.

What we don’t like about it: State Farm doesn’t offer gap insurance.

Read our full State Farm review.

7. Best for mobile app access: GEICO

Pros Cons
  • Ranks above average for claims satisfaction
  • Low number of customer complaints
  • Offers convenient access via mobile app
  • Handles much of customer service online or via mobile app
  • Doesn’t offer gap insurance coverage

GEICO is one of the largest auto insurers in the country. In 2022, it insured more than 30 million vehicles. Drivers may find affordable liability-only auto insurance rates with GEICO as well as many other types of coverage. GEICO also offers several discounts you can take advantage of to save on its already low rates.

Why we like it: GEICO is a great option for drivers who want easy access to their car insurance on their mobile phones. The GEICO app puts all your insurance documents, claims, quotes, and other information right in the palm of your hand.

What we don’t like about it: Because so much of GEICO is done online or through your mobile phone, fewer insurance agents are available to meet with in person. GEICO may not be the best choice for car insurance for people who prefer to talk or meet face-to-face with an agent.

Read our full GEICO review.

8. Best for safe drivers: American Family

Pros Cons
  • Several pay-as-you-drive programs provide better rates for safe drivers
  • High claims satisfaction
  • Minimal number of customer complaints
  • Some discounts aren’t available in certain states
  • Not available in all states

Wisconsin-based American Family Insurance has been providing insurance coverage since 1927. It is a Fortune 500 company ranked as the nation's 12th-largest property/casualty insurance group.

American Family has insurance products for your car, home, condo, renter’s, pet, travel, boat and much more. It offers liability-only auto insurance coverage as well as other coverage options such as collision, comprehensive, gap insurance, and accidental death and dismemberment coverage.

Why we like it: American Family has a number of discounts that reward policyholders for their safe driving habits. Drivers can save up to 20% off car insurance premiums by using the KnowYourDrive smartphone app to track their driving behavior. You can also save 10% by signing up for American Family’s Pay-How-You-Drive safe driving program.

What we don’t like about it: Unfortunately, American Family car insurance is available only in 19 states.

9. Best for teen drivers: Allstate

Pros Cons
  • Available in all 50 states
  • Ranks high for claims satisfaction
  • Coverage for rideshare drivers
  • Above average number of customer complaints
  • Only offers six-month policies

When Allstate insurance was founded in 1931, it originally sold insurance exclusively through mail order. Today, Allstate has agents available in all 50 states and Washington, D.C. The company offers all the standard car insurance coverages, including liability-only coverage and optional coverages such as classic car insurance and Mexico tourist auto insurance.

Why we like it: Allstate provides some of the best car insurance coverage for young drivers. Car insurance for teens can be expensive, even if you opt for liability-only coverage. Allstate provides several discounts to save money on insuring your teen, such as the teenSMART driver safety program and good student discounts.

What we don’t like about it: Allstate has more customer complaints than other car insurance companies in the industry, according to the NAIC.

Read our full Allstate review.

10. Best for customizable policies: Progressive

Pros Cons
  • Name Your Price tool enables you to find car insurance within your budget
  • Low number of customer complaints
  • Available in all states
  • Ranks below average for claims satisfaction
  • You have to pay extra for roadside assistance

Progressive provides insurance coverage for over 18 million people. Car insurance coverage available ranges from cheap liability-only car insurance to rideshare coverage and coverage for custom car parts and equipment. Progressive is available for drivers in all 50 states and Washington, D.C.

Why we like it: Progressive enables you to build a car insurance policy to fit your budget with its Name Your Price Tool. You just tell Progressive how much you can afford to pay for insurance, and the insurer tells you what coverage is best for your budget, considering the state car insurance requirements where you live.

What we don’t like about it: Progressive ranks considerably lower than its competitors, and under the industry average, for customer satisfaction on car insurance claims, according to J.D. Power.

Read our full Progressive review.

How to choose the best car insurance companies for liability-only coverage

If you’re trying to buy affordable car insurance, you could opt for liability-only coverage. This coverage only pays for injuries to the other parties involved (known as bodily injury liability coverage) or property damage to another personal vehicle in an accident that is your fault. It doesn’t cover your medical expenses or damage to your vehicle.

Most states require you to at least carry a minimum of bodily injury and property damage liability coverage, so liability-only coverage is usually something you must have by law. How much coverage you’re required to carry depends on the state where you live.

For example, in Ohio, the minimum liability coverage you can carry by state law is:

  • $25,000 for the injury or death of one person
  • $50,000 for the injury or death of two or more people
  • $25,000 for property damage

In California, the state minimum requirements are:

  • $15,000 for the injury or death of one person
  • $30,000 for the injury or death of two or more people
  • $5,000 for property damage

These are the minimum coverage limits — and if the expenses associated with an at-fault accident — like medical bills and vehicle repair costs — exceed those liability limits, you could be responsible for paying the difference. Even if you stick with a liability-only policy, you may want to opt for higher coverage limits or a lower deductible depending on your budget and financial priorities.

When shopping for liability-only car insurance coverage, car insurance costs shouldn’t be the only factor that makes an insurer the best option for you. Other factors to consider include:

  • What is the insurer’s customer service record?
  • Does the insurer offer discounts you’d be eligible for?
  • How is the insurer ranked in the industry (J.D. Power, AM Best, NAIC)?
  • Can you buy coverage online?
  • Do you have a local agent?

FAQs about cheap liability-only car insurance

What is the difference between liability and comprehensive insurance?

The difference between liability and comprehensive insurance is that liability covers repairs or injuries sustained by the other person in an at-fault accident. Comprehensive insurance covers repairs or injuries that happen to you in a non-collision-related event. The types of incidents covered by comprehensive insurance include theft, vandalism, natural disasters, and accidents with animals.

What is the cheapest place to get car insurance?

We found that Auto-Owners Insurance is the cheapest place to get car insurance based on average rates. However, Auto-Owners is only available for drivers in 26 states. You may find more affordable liability-only car insurance with other insurers if you’re a safe driver, have a good credit score, and qualify for several discounts.

In addition, insurance companies take a lot of factors into consideration when deciding your rates, including your driving history (speeding tickets, DUIs, etc.), age, gender, the type of car you drive, and where you garage your vehicle.

Is GEICO really the cheapest car insurance?

For car insurance that is available in all U.S. states, GEICO does have some of the cheapest rates. Some insurers may offer cheaper liability-only car insurance coverage. Depending on your driving record, credit score, and the required insurance in your state, you may be able to find a car insurance policy cheaper than GEICO.

Best car insurance for liability-only coverage: bottom line

There are several options out there for cheap car insurance coverage. You should consider other factors like customer satisfaction ratings and available discounts when shopping for liability-only car insurance. Depending on your driving record, credit score, and discounts you qualify for, you may get a better premium rate from a company that’s not on this list.

Methodology

To develop our list of the best liability-only car insurance companies, we looked at popular auto insurance companies and evaluated them according to aggregated data on their average price for liability-only coverage. We did not evaluate all companies in the category.

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Author Details

Danielle Letenyei Danielle Letenyei is a professional writer living in Madison, Wisconsin. Her interests include budgeting, travel, credit cards, insurance, and creative side gigs. She hopes her work on these topics can help others navigate the intricate landscape of personal finance.

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