Introduction: Liability car insurance (often called “liability-only” insurance) is the legally required minimum auto coverage in almost every U.S. state.
It pays for bodily injury liability and property damage liability that you cause to others in an at-fault accident. This means it covers the other driver’s injuries and vehicle damage, but not your own vehicle or medical bills. Liability-only is far cheaper than full coverage, making it ideal for older or low-value cars.
In this guide, we rank and explain the 10 best liability car insurance companies in the USA for 2025. We cover key terms like minimum liability coverage, state liability requirements, liability-only insurance, and liability vs full coverage. We also show sample quotes, discounts, Liability Car Insuranc, and tips for finding cheap liability car insurance quotes.
What Is Liability Car Insurance?
Liability car insurance covers your legal responsibility when you cause an accident. It typically consists of two parts: bodily injury liability (which pays for the other person’s medical bills) and property damage liability (which pays for damage to the other person’s vehicle or property).
It does not cover your own vehicle or injuries – for that, you would need collision, comprehensive, or personal injury protection. Because liability-only plans exclude these, they can be about 60–61% cheaper than full coverage. For example, the national average liability premium is roughly $617 per year vs $1,638 for full coverage. Liability Car Insurance
By law, every U.S. state except New Hampshire requires drivers to carry at least a minimum level of liability insurance.
These state liability requirements vary: for instance, Texas mandates limits of 30/60/25 (meaning $30k bodily injury per person, $60k per accident, $25k property damage), while California requires 15/30/5.
It’s crucial to check your state’s mandated minimum coverage before shopping for quotes. Liability policies often add optional features like uninsured motorist or personal injury protection, but the core is always injury and damage you cause to others.
Why Consider Liability-Only Insurance?
Liability-only or minimum coverage insurance makes sense when the car’s value is low or you want the cheapest policy.
If the cost of a full-coverage premium exceeds your car’s valuedropping liability car insurance to liability can save money. This is common for older vehicles. MoneyGeek data shows the cheapest liability-only rates are as low as $43 per month with GEICO (about $522/year), roughly 35% below the national average.
On average, drivers pay around $60/month for minimum coverage. Liability-only policies allow you to remain legally insured at a much lower cost, though you must pay out-of-pocket for any repairs or injuries to yourself. If keeping premiums low is a priority, liability-only insurance can be a smart choice.
Key Points about Liability Insurance:
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It protects others’ injuries/property when you’re at fault, but not your own vehicle.
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It’s required in 49 states (all but NH) under state law. Each state sets its own minimum liability coverage.
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Typical state splits like 30/60/25 or 15/30/5 represent the coverage limits.
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Liability-only is much cheaper than full coverage (about 60% less).
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Ideal for older cars, second vehicles, or drivers on a budget.
How Much Liability Insurance Do You Need? (State Minimums)
Each state’s Department of Motor Vehicles or Insurance Commission defines the minimum liability coverage you must carry. Most states use split limits (e.g., 25/50/25).
For example, Texas requires at least 30/60/25, meaning $30,000 per injured person, $60,000 per accident, and $25,000 property damage. California’s minimum is 15/30/5. New Hampshire is the only state that does not require liability insurance (though you must prove financial responsibility). Always carry more than the minimum if you can, since damages in a serious crash can easily exceed low limits.
For liability quotes, insurers typically provide multiple limit options. When getting liability insurance quotes, make sure to specify at least your state’s minimum limits. Comparing quotes from different insurers will help you find the lowest premium for that coverage level. Often, customers “bundle” liability with other insurance (home, renters) for discounts, even if just buying the minimum.Liability Car Insurance
Minimum coverage can vary: According to Insurify, 49 states (all but NH) mandate liability insurance. The exact amount varies — for instance, drivers in Michigan paid an average of $133 per month for minimum coverage (highest), while those in Wyoming averaged $31/month (lowest).
Liability vs Full Coverage: What’s the Difference?
The phrase “liability vs full coverage” contrasts minimum-required insurance against a more comprehensive policy. As noted, liability-only covers only third parties.
Full coverage includes liability plus collision (repairs your car after your fault) and comprehensive (theft, vandalism, weather, etc.). Because full coverage pays for your own damages, it costs much more. ValuePenguin and BusinessInsider data both confirm liability-only policies run roughly 60% cheaper than their full-coverage equivalents.
For example, one analysis found the average full-coverage premium is $1,638/year vs $617 for liability-only. That’s a $1,021 difference! In practice, dropping collision/comprehensive can cut an auto insurance bill in half or more. But remember:
Liability-only means you pay for any repairs or medical costs for yourself. Use the rule of thumb: if your car is worth less than a few thousand dollars or you could afford out-of-pocket repairs, liability-only can be cost-effective.
1. GEICO Auto Insurance – Best Overall Liability Rates
GEICO stands out as one of the cheapest liability insurers nationwide. It offers liability-only policies in all 50 states, and MoneyGeek reports GEICO’s average minimum liability rate is just $43 per month (about $522/year).
Business Insider notes GEICO’s state-minimum liability costs around $400 per year, well under the national average of $617. GEICO also has top financial strength (A++) and a high JD Power satisfaction score (824).
Why GEICO? It has a vast national presence and many discounts (good driver, multi-car, military, airbags, anti-theft, bundling, etc.). GEICO also offers perks like accident forgiveness on qualifying policies. Its mobile app is highly rated and makes quoting easy. In short, GEICO often delivers the lowest liability rates with solid convenience.
Citations: MoneyGeek and Business Insider rank GEICO highest for cheap liability coverage.
2. USAA Auto Insurance – Best for Military and Veterans
USAA is consistently one of the cheapest liability insurers – its average liability premium can be as low as $36 per month. However, eligibility is strictly limited to U.S. military members, veterans, and their families. If you qualify, USAA offers outstanding value. Insurance experts rate USAA very highly, and it holds an A++ financial rating.
USAA’s liability policies come with many discounts (safe driving, multiple cars, bundling home and auto, etc.). According to Business Insider, “coverage is available in all 50 states, and premiums are generally affordable” for eligible members. USAA customers also benefit from programs like SafePilot (usage-based safe-driving discount) and excellent customer service.
Eligibility: Note that only current/former military members and their families may join USAA. Non-military drivers cannot get a USAA quote.
3. State Farm Auto Insurance – Best Nationwide Affordability
State Farm is the largest auto insurer in the country and offers liability insurance nationwide. It often has some of the lowest rates among major insurers. Business Insider notes State Farm has “one of the lowest average car insurance rates in the country, second to USAA”. For liability-only coverage, State Farm’s average was about $51 per month.
State Farm’s strengths are its wide availability (all 50 states + DC) and a vast network of local agents. Liability Car Insurance
It has strong customer satisfaction ratings (JD Power 817) and a long record of stability (A++ rating). State Farm provides many discounts (bundling, good student, safe driver, etc.) and even offers free rideshare coverage. Even young drivers see relatively low liability rates (under $1,000 per year) with State Farm.
Why consider State Farm? It’s easy to find an agent to help customize a policy. As a national brand, State Farm’s rates are consistently competitive for minimum coverage.
4. Travelers Auto Insurance – Best for Seniors & Discounts
Travelers is known for affordable policies and special programs. It ranked highly in Business Insider’s review for liability coverage. Travelers introduced IntelliDrivePlus, a telematics app that can save up to 30% for low-mileage, safe drivers. This is particularly valuable for retirees or anyone with minimal driving.
Travelers also offers discounts for good students, safe drivers, bundling, and even electric vehicles. According to Business Insider, Travelers’ online quoting is convenient, and it offers a wide range of discounts, making “cheap liability insurance” accessible. On average, Travelers’ minimum coverage costs about $50/month, tying it for the second-cheapest with National General.
Who should choose Travelers? Drivers (especially seniors or retirees) who drive infrequently can benefit from IntelliDrive. If you prefer online tools and a wide discount menu, Travelers is a solid choice. Its financial strength is strong (A++), and customer satisfaction (JD Power 854) is good.
5. Erie Insurance – Best for Customer Satisfaction
Erie Insurance stands out for service quality. It is available in 12 states plus DC, primarily in the Midwest and East. Erie specializes in affordability and customer care, earning a very high JD Power score. Business Insider notes Erie offers “cheap liability insurance and fantastic customer service”.
Erie’s average minimum liability premium is about $43/month (similar to GEICO). It has one of the highest customer retention rates (90%) in the industry. Erie also offers dividends to policyholders and unique programs like YourTurn (safe driving cash rewards). If you live in one of its service states, Erie is a top pick: it earned the third-best national satisfaction rating in 2024.
Key points: Erie’s liability coverage is widely regarded as very affordable in its markets. Combined with strong agent support and claims service, Erie is ideal for drivers in the states it serves.
6. National General – Best for Budget Rates
National General often appears in “cheapest liability” rankings. MoneyGeek analysis lists National General’s minimum liability at $50/month. It ties with Travelers as the second-cheapest option nationwide. National General is known for being accessible (available in most states) and competitive on price for clean-risk drivers.
For example, one MoneyGeek study found National General offers the lowest rates for adding a young driver ($101/month with a clean record), and very affordable rates for drivers with poor credit. Thus, National General can be a bargain for families or drivers with less-than-ideal credit.
Offers: While National General may not have as many discounts as the biggest brands, it often undercuts them on price for standard liability. It’s worth quoting for anyone shopping strictly for minimum coverage, especially if others quote high.
7. Amica Insurance – Best for Comprehensive Support
Amica Mutual isn’t usually the cheapest, but it deserves mention. MoneyGeek shows Amica’s average liability premium is about $56/month, which is still low. Amica consistently ranks #1 in customer satisfaction for full coverage, and its liability customers report similarly high satisfaction. Liability Car Insurance
Amica’s key benefits include dividends (it’s a mutual insurer), accident forgiveness, and personalized service. If you prefer a company that treats customers well, Amica is a contender. Its mobile app and website are user-friendly for getting quotes. While Amica is not available in every state (they cover 45 states), it’s often worth getting a quote if you can.
8. Farmers Insurance – Best for Bundling & Discounts
Farmers Insurance is a large, nationwide carrier. For pure liability-only rates, Farmers tends to be a bit higher (average ~$83/month). However, Farmers shines when you bundle multiple policies. Its customers save about 20% on average when combining home or renters insurance with their auto. Farmers also offers dozens of discounts: students, multi-car, safety devices, homeowner, eco-vehicles, and more.
For example, Farmers gives 20% off for students with good grades, up to 5% for owning a hybrid vehicle, and several more safe-driving discounts. It also offers uncommon coverages like custom parts, rideshare liability, and accident forgiveness.
Why pick Farmers? If you have other Farmers policies or want many ways to save, bundling with Farmers can offset its higher base rate. Farmers also has a highly rated mobile app and 4.8/4.6 stars on app stores. In short, Farmers is recommended for drivers who bundle and want maximum discounts.
9. Direct Auto Insurance – Best for High-Risk Drivers
Direct Auto specializes in high-risk drivers (those with DUI, accidents, or poor records). While its standard rates are higher (around $83/month for minimum coverage, similar to Farmers), it’s often more affordable than most for drivers who have trouble finding insurance elsewhere. Direct Auto will write minimum liability policies and even SR-22 filings.
Key features of Direct Auto’s liability insurance:
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Flexible payment options: You can pay weekly, monthly, or annually to fit your budget.
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Discounts for challenging drivers: Active-duty military get up to 25% off, accident-free customers save 10%, good students save 10%, seniors save 5%, etc..
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High availability: It offers non-owner liability policies (for drivers without a car) in many states, which most major insurers do not.
Consider Direct Auto if: You have driving violations or need an SR-,22 and find that most insurers are declining you. It’s specifically geared to keep even high-risk drivers insured. Just remember that you may pay more until your record clears.
10. Allstate Insurance – Major Brand (Check Quotes)
Allstate is one of the largest insurers with wide availability, but it generally does not offer the cheapest liability-only rates. In fact, analysis shows Allstate (and even Farmers) tend to be relatively expensive for minimum coverage. For example, in many states, the cheapest companies are GEICO, State Farm, or local mutuals, not Allstate.
However, Allstate does have advantages: a huge agent network and plenty of optional features (like accident forgiveness, deductible savings bank, etc.). If you prefer an agent and are comparing quotes, it doesn’t hurt to get an Allstate quote. Just be aware that other carriers may undercut Allstate on price for the same coverage levels.
Other Companies to Consider: Progressive, Liberty Mutual,Liability Car Insurance Nationwide and many smaller regional insurers also sell liability insurance. Progressives’s and Nationwide’s liability rates tend to be moderate, while mutual insurers like Auto-Owners may offer competitive local rates. Always compare quotes – the “best” company can vary by ZIP code and driver profile.
Tips for Comparing Liability Insurance Quotes
Shopping around is key to finding cheap liability coverage. Here are some proven tips:
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Compare Quotes from Multiple Insurers: Rates vary widely. Use online tools or an insurance broker to get instant liability insurance quotes. Don’t settle on the first offer. A small change in insurer can save hundreds per year.
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Maintain a Clean Driving Record: Tickets, accidents, and DUIs drastically raise liability premiums. Staying violation-free helps you lock in the lowest rates. Some insurers even offer usage-based programs (like safe-driving tracking) for extra discounts.
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Bundle Policies: Bundling auto liability with home/renters or other policies usually triggers multi-policy discounts (20% off on average for Farmers, for instance). Even liability-only can be bundled.
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Raise Your Deductibles (on Added Coverage): Liability claims have no deductible, but if you ever add collision/comprehensive, a higher deductible lowers the premium.
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Look for Hidden Discounts: Many insurers give discounts for things like paying in full, anti-theft devices, low annual mileage, or being a good student. Ask your agent or look for discounts when quoting. For example, Liability Car Insurance GEICO and State Farm both have generous good-student discounts; USAA and State Farm offer safe-driver program credits.
Remember that coverage and service quality matter too. Sometimes paying a bit more for better service (especially at Direct Auto or Erie) can be worthwhile. But if budget is the main concern, focus on the companies noted above as having the lowest liability premiums.
Frequently Asked Questions
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Q: What does liability car insurance cover? A: Liability insurance covers other people’s injuries and property damage when you’re at fault. It includes bodily injury liability (medical/legal costs for others) and property damage liability (repairing the other vehicle). It does not cover your own car or medical bills.
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Q: How much liability insurance do I legally need? A: State laws require at least a minimum split limit. For example, Texas requires 30/60/25 and California requires 15/30/5. Drivers in 49 states (all but NH) must carry liability insurance. Your insurer’s quotes will usually list the state-required limit, which is the minimum you should buy (more is often better).
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Q: Is liability-only coverage enough for my car? A: Liability-only is usually best for older or inexpensive cars. If your vehicle is old enough that collision repairs would cost more than the car’s value, liability-only insurance can save money. Insurify notes that liability-only “can be a good choice for drivers with older, paid-for, and less valuable vehicles”. If your car is newer or valuable, full coverage is safer.
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Q: How can I get cheap liability insurance quotes? A: Shop around online or with an independent agent. Provide the same coverage limits to each insurer and compare quotes. Using a tool like Insurify or MoneyGeek’s quote comparison can help. Check insurers like GEICO, State Farm, and local mutuals first, as they often offer the lowest minimum Liability Car Insurance coverage rates. Don’t forget to enter discount information (good student, anti-lock brakes, etc.) to get the best possible quote.
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Q: What’s the difference between “liability-only” and “full coverage”? A: Liability-only covers others. Full coverage includes liability plus your own collision and comprehensive coverage. Liability-only premiums are much lower (around 60% cheaper) because you’re giving up coverage for your own vehicle. Liability Car Insurance. The tradeoff is that with liability-only, you pay out of pocket for any repairs to your car after an accident. Full coverage protects you but costs more.
