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Cheapest Liability-Only Car Insurance (December 2023)


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Updated: Dec 1, 2023
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The cheapest liability-only car insurance is from State Farm, which also offers the most affordable option for high-risk drivers. For teens, State Farm offers the cheapest options. For young drivers and seniors, GEICO offers the lowest average annual rate. Nationwide is the cheapest insurer for drivers with poor credit. It’s smart to compare options in your state for a more accurate cost estimate.

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2023

Cheapest Liability-Only Car Insurance

Key Takeaways

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Liability insurance is usually the cheapest level of car insurance because it only covers the costs of injuries and damages for the other vehicle if you are at fault in an accident.

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Cheap liability insurance is best for drivers with a paid-off vehicle who have enough savings to cover the costs of repairing their vehicle.

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Although liability-only insurance is the cheapest option, it may not provide enough coverage for all of your expenses if you are at fault in an accident.


Which Companies Have Cheap Liability Car Insurance?

MoneyGeek compared average car insurance rates across the country and found that the cheapest providers for a liability-only policy are:

  • 22–29 years old: State Farm ($494 per year)
  • 30–59 years old: State Farm ($409 per year)
  • 60+ years old: State Farm ($391 per year)

The cheapest liability-only car insurance is typically the cheapest option available as it only covers the cost of damages or injuries other parties incur when you’re at fault. This type of policy may only meet the state minimum coverage requirements and can leave you on the hook for major losses.

Depending on how much car insurance you need, you may choose higher limits. Use the table below to view the cheapest companies and rates based on your age range and coverage limits.

Company
Annual Premium
Monthly Premium

State Farm

$629

$52

Nationwide

$767

$64

State Farm

$494

$41

Nationwide

$506

$42

Nationwide

$611

$51

State Farm

$409

$34

Nationwide

$495

$41

Nationwide

$587

$49

State Farm

$391

$33

Nationwide

$644

$54

State Farm

$768

$64

GEICO

$500

$42

State Farm

$523

$44

State Farm

$651

$54

GEICO

$424

$35

State Farm

$499

$42

State Farm

$615

$51

GEICO

$436

$36

Travelers

$679

$57

GEICO

$808

$67

Travelers

$548

$46

GEICO

$579

$48

GEICO

$686

$57

Nationwide

$462

$38

GEICO

$602

$50

GEICO

$705

$59

Nationwide

$456

$38

GEICO

$691

$58

Travelers

$821

$68

Progressive

$579

$48

Travelers

$621

$52

Travelers

$753

$63

Travelers

$504

$42

Travelers

$644

$54

Travelers

$775

$65

Progressive

$512

$43

Progressive

$757

$63

Progressive

$888

$74

Nationwide

$592

$49

Progressive

$666

$56

Progressive

$765

$64

Progressive

$514

$43

Progressive

$664

$55

Progressive

$776

$65

Travelers

$523

$44

Allstate

$784

$65

Allstate

$898

$75

Allstate

$641

$53

Farmers

$731

$61

Allstate

$851

$71

Farmers

$572

$48

Farmers

$769

$64

Allstate

$904

$75

Farmers

$594

$50

Farmers

$891

$74

Farmers

$1,069

$89

Farmers

$692

$58

Allstate

$738

$61

Farmers

$883

$74

Allstate

$604

$50

Allstate

$786

$66

Farmers

$929

$77

Allstate

$640

$53

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MoneyGeek Top Pick
State Farm

State Farm: $409 per year

Nationally, the top choice for most drivers looking for cheap liability car insurance is State Farm. State Farm also offers add-on coverages, such as roadside assistance and rental car and/or travel reimbursement, for drivers who want more protection. Drivers can lower premium rates by taking advantage of savings opportunities like bundling, defensive driving, safe driving and anti-theft system discounts.

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MONEYGEEK EXPERT TIP

You can opt for a liability-only no down payment car insurance policy which is being offered by different companies.

Cheapest Liability-Only Car Insurance by State

The cost of car insurance policies can vary greatly since car insurance companies calculate rates differently between states. The cheapest option at a national level may not necessarily be the most affordable choice in your state. Additionally, there may also be regional insurance providers that are only available where you live.

Select your age range and state to see which company offers the cheapest state minimum coverage policy for you.

State
Company
Annual Premium
Monthly Premium

Alabama

Cincinnati Insurance

$256

$21

Alabama

Cincinnati Insurance

$201

$17

Alabama

Cincinnati Insurance

$175

$15

Alaska

GEICO

$352

$29

Alaska

State Farm

$322

$27

Alaska

State Farm

$300

$25

Arizona

Travelers

$359

$30

Arizona

Mercury

$305

$25

Arizona

Mercury

$321

$27

Arkansas

Hanover

$260

$22

Arkansas

State Farm

$232

$19

Arkansas

Hanover

$191

$16

California

CSAA

$428

$36

California

GEICO

$419

$35

California

GEICO

$411

$34

Colorado

American National P&C

$259

$22

Colorado

American National P&C

$216

$18

Colorado

American National P&C

$248

$21

Connecticut

GEICO

$405

$34

Connecticut

GEICO

$319

$27

Connecticut

GEICO

$326

$27

Delaware

Travelers

$459

$38

Delaware

Travelers

$464

$39

Delaware

Travelers

$444

$37

District of Columbia

GEICO

$474

$40

District of Columbia

GEICO

$372

$31

District of Columbia

Chubb

$372

$31

District of Columbia

Chubb

$345

$29

Florida

State Farm

$581

$48

Florida

GEICO

$485

$40

Florida

GEICO

$446

$37

Georgia

Auto-Owners Insurance Co

$441

$37

Georgia

Auto-Owners Insurance Co

$311

$26

Georgia

Country Financial

$285

$24

Hawaii

GEICO

$217

$18

Hawaii

GEICO

$217

$18

Hawaii

GEICO

$217

$18

Idaho

American National P&C

$152

$13

Idaho

American National P&C

$127

$11

Idaho

State Farm

$145

$12

Illinois

Mercury

$329

$27

Illinois

Mercury

$226

$19

Illinois

Mercury

$235

$20

Indiana

State Farm

$287

$24

Indiana

Auto-Owners Insurance Co

$228

$19

Indiana

State Farm

$222

$18

Iowa

State Farm

$175

$15

Iowa

State Farm

$144

$12

Iowa

State Farm

$136

$11

Kansas

Nationwide

$275

$23

Kansas

Nationwide

$221

$18

Kansas

Nationwide

$218

$18

Kentucky

Cincinnati Insurance

$330

$28

Kentucky

Cincinnati Insurance

$257

$21

Kentucky

Cincinnati Insurance

$228

$19

Louisiana

GEICO

$535

$45

Louisiana

Louisiana Farm Bureau

$484

$40

Louisiana

State Farm

$541

$45

Maine

Countryway Insurance

$266

$22

Maine

Countryway Insurance

$221

$18

Maine

Countryway Insurance

$221

$18

Maryland

Progressive

$572

$48

Maryland

Kemper

$538

$45

Maryland

Progressive

$538

$45

Massachusetts

State Farm

$221

$18

Massachusetts

State Farm

$221

$18

Massachusetts

State Farm

$167

$14

Michigan

Travelers

$111

$9

Michigan

Travelers

$101

$8

Michigan

Travelers

$94

$8

Minnesota

Auto-Owners Insurance Co

$370

$31

Minnesota

Westfield

$317

$26

Minnesota

State Farm

$305

$25

Mississippi

Progressive

$304

$25

Mississippi

Direct General Insurance

$275

$23

Mississippi

Progressive

$227

$19

Missouri

State Farm

$479

$40

Missouri

State Farm

$388

$32

Missouri

State Farm

$381

$32

Montana

State Farm

$185

$15

Montana

State Farm

$168

$14

Montana

State Farm

$154

$13

Nebraska

American National P&C

$163

$14

Nebraska

American National P&C

$138

$12

Nebraska

American National P&C

$157

$13

Nevada

CSAA

$565

$47

Nevada

CSAA

$444

$37

Nevada

CSAA

$402

$33

New Hampshire

State Farm

$296

$25

New Hampshire

State Farm

$247

$21

New Hampshire

State Farm

$233

$19

New Jersey

Amica Mutual

$460

$38

New Jersey

GEICO

$428

$36

New Jersey

GEICO

$420

$35

New Mexico

State Farm

$310

$26

New Mexico

State Farm

$254

$21

New Mexico

State Farm

$239

$20

New York

Kemper

$540

$45

New York

Kemper

$464

$39

New York

Kemper

$468

$39

North Carolina

Nationwide

$293

$24

North Carolina

Nationwide

$242

$20

North Carolina

Nationwide

$230

$19

North Dakota

Nodak Mutual

$211

$18

North Dakota

Nodak Mutual

$190

$16

North Dakota

Nodak Mutual

$158

$13

Ohio

Erie

$220

$18

Ohio

Erie

$176

$15

Ohio

Erie

$170

$14

Oklahoma

State Farm

$258

$22

Oklahoma

State Farm

$215

$18

Oklahoma

State Farm

$200

$17

Oregon

State Farm

$411

$34

Oregon

State Farm

$381

$32

Oregon

State Farm

$360

$30

Pennsylvania

Travelers

$286

$24

Pennsylvania

Erie

$238

$20

Pennsylvania

Erie

$242

$20

Rhode Island

Travelers

$376

$31

Rhode Island

State Farm

$344

$29

Rhode Island

State Farm

$356

$30

South Carolina

American National P&C

$285

$24

South Carolina

American National P&C

$251

$21

South Carolina

American National P&C

$283

$24

South Dakota

State Farm

$260

$22

South Dakota

Farmers Mutual of Nebraska

$207

$17

South Dakota

State Farm

$204

$17

Tennessee

State Farm

$256

$21

Tennessee

Auto-Owners Insurance Co

$207

$17

Tennessee

State Farm

$197

$16

Texas

State Farm

$392

$33

Texas

State Farm

$321

$27

Texas

Texas Farm Bureau

$295

$25

Utah

GEICO

$490

$41

Utah

Farmers Union Insurance

$388

$32

Utah

Farmers Union Insurance

$369

$31

Vermont

State Farm

$233

$19

Vermont

State Farm

$198

$17

Vermont

State Farm

$188

$16

Virginia

Virginia Farm Bureau

$300

$25

Virginia

American Family

$243

$20

Virginia

Mercury

$251

$21

Washington

PEMCO

$326

$27

Washington

PEMCO

$262

$22

Washington

PEMCO

$284

$24

West Virginia

Erie

$361

$30

West Virginia

Erie

$303

$25

West Virginia

Erie

$300

$25

Wisconsin

GEICO

$273

$23

Wisconsin

Erie

$230

$19

Wisconsin

State Farm

$232

$19

Wyoming

GEICO

$201

$17

Wyoming

GEICO

$176

$15

Wyoming

State Farm

$182

$15

Cheapest Liability-Only Car Insurance by Age

Age is one of the most important considerations when determining the cost of car insurance. Insurers tend to charge higher premiums for teens, young drivers and seniors due to inexperience and/or risk.

For instance, the National Safety Council reports that 16–19-year-old drivers are only 3.5% of licensed drivers. However, 8.9% of drivers in car crashes fall within this age range. Drivers 65–74 and those 75 and older account for 6.9% and 3.4% of all crashes, respectively.

Use the table below to compare average rates by age range for different liability-only policies, including state minimum and increased coverage options.

Age
Company
Annual Premium
Monthly Premium

16

State Farm

2,214

185

16

State Farm

2,651

221

16

State Farm

1,764

147

17

State Farm

1,942

162

17

State Farm

2,328

194

17

State Farm

1,546

129

18

State Farm

1,703

142

18

State Farm

2,043

170

18

State Farm

1,354

113

19

State Farm

1,444

120

19

State Farm

1,736

145

19

State Farm

1,148

96

20

State Farm

1,268

106

20

State Farm

1,526

127

20

State Farm

1,007

84

21

Nationwide

993

83

21

Nationwide

1,179

98

21

GEICO

787

66

22

Nationwide

907

76

22

Nationwide

1,078

90

22

GEICO

728

61

23

Nationwide

820

68

23

Nationwide

975

81

23

GEICO

633

53

24

Nationwide

765

64

24

Nationwide

911

76

24

GEICO

600

50

25

Nationwide

674

56

25

Nationwide

804

67

25

GEICO

531

44

26

Nationwide

625

52

26

Nationwide

742

62

26

GEICO

515

43

27

Nationwide

601

50

27

Nationwide

714

59

27

GEICO

494

41

28

Nationwide

590

49

28

Nationwide

701

58

28

State Farm

489

41

29

Nationwide

571

48

29

Nationwide

679

57

29

State Farm

476

40

30

Nationwide

563

47

30

Nationwide

670

56

30

GEICO

462

38

35

Nationwide

550

46

35

Nationwide

654

55

35

GEICO

457

38

40

Nationwide

538

45

40

Nationwide

640

53

40

GEICO

455

38

45

Nationwide

525

44

45

Nationwide

626

52

45

GEICO

449

37

50

Nationwide

504

42

50

Nationwide

600

50

50

GEICO

438

37

55

Nationwide

481

40

55

Nationwide

574

48

55

Nationwide

436

36

60

Nationwide

477

40

60

Nationwide

569

47

60

Nationwide

432

36

65

Nationwide

517

43

65

Nationwide

615

51

65

State Farm

432

36

70

Nationwide

563

47

70

Nationwide

669

56

70

State Farm

452

38

75

Nationwide

624

52

75

Nationwide

741

62

75

State Farm

498

41

80

State Farm

702

58

80

Nationwide

838

70

80

State Farm

554

46

85

Nationwide

718

60

85

Nationwide

852

71

85

State Farm

617

51

90

Nationwide

727

61

90

Nationwide

862

72

90

GEICO

640

53

Cheap Liability Car Insurance for High-Risk Drivers

Drivers with a clean record typically get lower car insurance rates compared to those who have a ticket, at-fault accident or DUI on record. Individuals with bad credit also tend to pay more for auto insurance.

  • Cheapest for Drivers with a Ticket: State Farm — $480 per year
  • Cheapest for Drivers with an At-Fault Accident: State Farm — $523 per year
  • Cheapest for Drivers with a DUI: State Farm — $614 per year
  • Cheapest for Drivers with Poor Credit: Nationwide — $621 per year

Cheapest Liability-Only Car Insurance for Drivers With a Ticket

The cheapest liability car insurance for drivers who have a ticket on their record may vary, depending on their age.

  • 22–29 years old: State Farm ($571 per year)
  • 30–59 years old: State Farm ($480 per year)
  • 60+ years old: State Farm ($450 per year)

There are various factors to consider when searching for the cheapest car insurance after a ticket. Use the table below to see the most affordable options and coverage limits across ages.

Company
Annual Premium
Monthly Premium

State Farm

$723

$60

State Farm

$879

$73

State Farm

$571

$48

State Farm

$609

$51

State Farm

$743

$62

State Farm

$480

$40

State Farm

$572

$48

State Farm

$699

$58

State Farm

$450

$37

Nationwide

$780

$65

Nationwide

$928

$77

GEICO

$621

$52

Nationwide

$637

$53

Nationwide

$756

$63

GEICO

$542

$45

Nationwide

$620

$52

Nationwide

$736

$61

GEICO

$564

$47

Travelers

$854

$71

GEICO

$1,015

$85

Travelers

$681

$57

GEICO

$757

$63

GEICO

$885

$74

Nationwide

$580

$48

GEICO

$795

$66

GEICO

$933

$78

Nationwide

$565

$47

GEICO

$868

$72

Travelers

$1,035

$86

Nationwide

$720

$60

Travelers

$823

$69

Allstate

$987

$82

Progressive

$639

$53

Travelers

$898

$75

Allstate

$1,057

$88

Progressive

$691

$58

Allstate

$913

$76

Allstate

$1,046

$87

Progressive

$722

$60

Progressive

$846

$71

Travelers

$999

$83

Travelers

$659

$55

Progressive

$919

$77

Progressive

$1,084

$90

Travelers

$720

$60

Progressive

$961

$80

Progressive

$1,134

$94

Allstate

$745

$62

Allstate

$862

$72

Progressive

$1,000

$83

Allstate

$704

$59

Allstate

$920

$77

Travelers

$1,085

$90

Allstate

$746

$62

Farmers

$1,062

$89

Farmers

$1,274

$106

Farmers

$824

$69

Farmers

$902

$75

Farmers

$1,082

$90

Farmers

$705

$59

Farmers

$979

$82

Farmers

$1,180

$98

Farmers

$758

$63

Cheapest Liability-Only Car Insurance for Drivers With an Accident

An at-fault accident will likely increase the cost of your car insurance, even more than a speeding ticket, unless you have accident forgiveness coverage. Based on average rates, the top options for cheap car insurance for drivers after an accident are:

  • 22–29 years old: State Farm ($623 per year)
  • 30–59 years old: State Farm ($523 per year)
  • 60+ years old: State Farm ($491 per year)

The table below provides information on the cheapest liability car insurance for different ages and coverage limits.

Company
Annual Premium
Monthly Premium

State Farm

$790

$66

State Farm

$957

$80

State Farm

$623

$52

State Farm

$665

$55

State Farm

$808

$67

State Farm

$523

$44

State Farm

$624

$52

State Farm

$761

$63

State Farm

$491

$41

Travelers

$915

$76

Travelers

$1,105

$92

Travelers

$731

$61

Nationwide

$765

$64

Nationwide

$913

$76

GEICO

$688

$57

Nationwide

$746

$62

Nationwide

$890

$74

Nationwide

$689

$57

Nationwide

$944

$79

Nationwide

$1,129

$94

GEICO

$776

$65

Travelers

$881

$73

Travelers

$1,065

$89

Travelers

$706

$59

Travelers

$962

$80

Travelers

$1,158

$96

GEICO

$736

$61

GEICO

$1,081

$90

GEICO

$1,269

$106

Nationwide

$865

$72

GEICO

$955

$80

GEICO

$1,119

$93

Nationwide

$708

$59

GEICO

$1,034

$86

GEICO

$1,218

$101

Travelers

$773

$64

Allstate

$1,109

$92

Allstate

$1,277

$106

Progressive

$890

$74

Allstate

$1,041

$87

Allstate

$1,198

$100

Progressive

$798

$67

Allstate

$1,118

$93

Allstate

$1,290

$108

Progressive

$877

$73

Progressive

$1,207

$101

Progressive

$1,435

$120

Allstate

$890

$74

Progressive

$1,080

$90

Progressive

$1,286

$107

Allstate

$835

$70

Progressive

$1,190

$99

Progressive

$1,415

$118

Allstate

$890

$74

Farmers

$1,338

$112

Farmers

$1,609

$134

Farmers

$1,026

$86

Farmers

$1,168

$97

Farmers

$1,402

$117

Farmers

$899

$75

Farmers

$1,291

$108

Farmers

$1,558

$130

Farmers

$984

$82

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WHAT IS ACCIDENT FORGIVENESS?

Accident forgiveness is an optional coverage you may be able to add to your auto policy. With it, your first at-fault accident won't cause your premium to increase. You must have a clean driving record to qualify for accident forgiveness coverage. With some companies, you pay for the coverage, and with others, such as GEICO, you may get it for free because of your driving record. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute

Cheapest Liability-Only Car Insurance for Drivers With a DUI

Driving under the influence typically causes a significant premium rate increase. For a liability-only policy, the cheapest car insurance companies for drivers with a DUI are:

  • 22–29 years old: Progressive ($726 per year)
  • 30–59 years old: State Farm ($614 per year)
  • 60+ years old: State Farm ($572 per year)

Select your age and preferred coverage limits below to see the cheapest insurer for you.

Company
Annual Premium
Monthly Premium

State Farm

$912

$76

State Farm

$1,092

$91

Progressive

$726

$60

State Farm

$767

$64

State Farm

$921

$77

State Farm

$614

$51

State Farm

$716

$60

State Farm

$861

$72

State Farm

$572

$48

Progressive

$973

$81

Progressive

$1,144

$95

State Farm

$731

$61

Progressive

$858

$71

Progressive

$1,009

$84

Progressive

$644

$54

Progressive

$930

$78

Progressive

$1,094

$91

Progressive

$695

$58

Travelers

$1,044

$87

Travelers

$1,274

$106

Travelers

$821

$68

Travelers

$1,005

$84

Farmers

$1,216

$101

Farmers

$791

$66

Nationwide

$1,011

$84

Nationwide

$1,204

$100

Farmers

$858

$71

Farmers

$1,174

$98

Allstate

$1,347

$112

Farmers

$912

$76

Farmers

$1,011

$84

Travelers

$1,228

$102

Travelers

$795

$66

Travelers

$1,103

$92

Allstate

$1,332

$111

Travelers

$874

$73

Allstate

$1,179

$98

Farmers

$1,411

$118

Allstate

$963

$80

Nationwide

$1,033

$86

Nationwide

$1,229

$102

Allstate

$903

$75

Farmers

$1,104

$92

Farmers

$1,335

$111

Nationwide

$936

$78

Nationwide

$1,235

$103

Nationwide

$1,472

$123

Nationwide

$1,126

$94

Allstate

$1,106

$92

Allstate

$1,264

$105

Nationwide

$958

$80

Allstate

$1,162

$97

Travelers

$1,344

$112

Allstate

$944

$79

GEICO

$1,635

$136

GEICO

$1,909

$159

GEICO

$1,186

$99

GEICO

$1,540

$128

GEICO

$1,803

$150

GEICO

$1,116

$93

GEICO

$1,657

$138

GEICO

$1,946

$162

GEICO

$1,190

$99

Cheapest Liability-Only Car Insurance for Drivers With Poor Credit

Insurance companies also consider a driver’s credit history when calculating car insurance premiums in most states, excluding California, Hawaii, Massachusetts and Michigan. Typically, drivers with poor credit tend to pay more on auto insurance because insurers consider them a higher risk.

The cheapest company for state minimum liability-only coverage for drivers with poor credit is:

  • 22–29 years old: Nationwide ($793 per year)
  • 30–59 years old: Nationwide ($621 per year)
  • 60+ years old: Nationwide ($601 per year)

Credit scores falling in the 300–579 range for FICO and 300–600 for VantageScore are considered poor.

Company
Annual Premium
Monthly Premium

Nationwide

$601

$50

Nationwide

$621

$52

Nationwide

$656

$55

Nationwide

$676

$56

GEICO

$696

$58

GEICO

$710

$59

Nationwide

$789

$66

Nationwide

$793

$66

Nationwide

$814

$68

GEICO

$822

$68

Nationwide

$859

$72

Farmers

$889

$74

Allstate

$897

$75

Progressive

$905

$75

Travelers

$908

$76

Farmers

$913

$76

Progressive

$926

$77

Travelers

$933

$78

Allstate

$948

$79

Allstate

$953

$79

Travelers

$969

$81

GEICO

$973

$81

GEICO

$1,000

$83

Progressive

$1,010

$84

Nationwide

$1,034

$86

State Farm

$1,051

$88

Farmers

$1,059

$88

State Farm

$1,114

$93

Travelers

$1,116

$93

Allstate

$1,121

$93

GEICO

$1,149

$96

Travelers

$1,156

$96

GEICO

$1,159

$97

Progressive

$1,165

$97

Farmers

$1,167

$97

GEICO

$1,184

$99

Allstate

$1,186

$99

Progressive

$1,190

$99

Allstate

$1,201

$100

Travelers

$1,201

$100

Farmers

$1,214

$101

Allstate

$1,305

$109

Progressive

$1,315

$110

State Farm

$1,320

$110

State Farm

$1,336

$111

Travelers

$1,350

$113

Progressive

$1,355

$113

GEICO

$1,368

$114

Allstate

$1,378

$115

Progressive

$1,381

$115

State Farm

$1,396

$116

Farmers

$1,400

$117

Travelers

$1,402

$117

Farmers

$1,403

$117

Allstate

$1,403

$117

Travelers

$1,459

$122

Farmers

$1,472

$123

Progressive

$1,535

$128

State Farm

$1,593

$133

State Farm

$1,673

$139

State Farm

$1,680

$140

Farmers

$1,683

$140

State Farm

$2,008

$167

Cheapest Liability-Only Car Insurance by Car Model

Another important factor that insurance companies consider when determining car insurance rates is the make and model of the car. For the average driver with an Acura MDX 2012, the cheapest state minimum coverage insurance is from State Farm at $395 per year on average.

You can also use this information when evaluating your auto insurance needs. For instance, new car models may require higher coverage limits than used cars. If you’re financing your vehicle through a loan, your lender will likely require full coverage car insurance. The same applies if you lease a vehicle.

Input your car make and model and model year to find the cheapest minimum coverage car insurance provider and rate for you.

How Much Does Liability Insurance Cost vs. Full Coverage

Liability-only car insurance that only meets state requirements for car insurance coverage costs an average of $489 per year. That's $126 cheaper per year than a policy that increases liability limits — as defined in our methodology— and more than $500 cheaper per year than a full coverage policy that increases liability limits and adds comprehensive and collision insurance.

Coverage
Annual Premium
Monthly Premium

State Minimum Liability Only

$489

$41

State Minimum Liability Only

$496

$41

State Minimum Liability Only

$591

$49

100/300/100 Liability Only

$615

$51

100/300/100 Liability Only

$626

$52

100/300/100 Liability Only

$745

$62

100/300/100 Full Cov. w/$1,000 Ded.

$1,020

$85

100/300/100 Full Cov. w/$1,000 Ded.

$1,054

$88

100/300/100 Full Cov. w/$1,000 Ded.

$1,302

$109

Adding comprehensive and collision coverage creates a full coverage policy. It is the best option if you want additional financial protection. Full coverage includes liability, and comprehensive and collision provide other benefits: replacing or repairing your vehicle if it is damaged in an at-fault accident with a vehicle or collision with an object like a light pole or another event, such as fire, flood or animal damage. Full coverage costs an average of $1,270 per year.

You can use the MoneyGeek car insurance calculator to figure out how much car insurance will cost for you depending on how much coverage you select.

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Should You Buy Liability-Only Insurance Instead of Full Coverage?

How much car insurance you should get depends on the risks you think are worth protecting against. If you fully own your car, and if it's an older vehicle, you should consider purchasing liability-only car insurance. For lower-value vehicles, the cost of adding comprehensive and collision may be more than your car is worth.

When to buy liability-only insurance:

Say your car insurance company charges you $500 a year for collision coverage with a $1,000 deductible. If an at-fault accident with another vehicle totals your car, you are effectively paying $1,500 that year for the insurance to cover replacing your vehicle, the sum of the cost of collision coverage and the deductible. If your car is worth less than $1,500, you’re paying more for the added coverage on the car than the car itself is worth. Drivers in this situation should consider buying liability-only insurance. You can check Kelly Blue Book to find the approximate market value of your vehicle.

When to add comprehensive and collision insurance:

Generally, if you own a newer, more valuable vehicle, you should consider buying comprehensive and collision insurance in addition to liability insurance. It will compensate you in the event that your vehicle is badly damaged, on or off the road, or stolen. If you lease your vehicle or took out a loan to finance the purchase, you will generally be required by your lender to buy comprehensive and collision coverage.

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The type of car insurance policy that’s best for you will depend on several factors, most notably the value of your vehicle.

  • If you have a less-valuable vehicle, it may make the most sense to buy liability-only insurance, the cheapest type of car insurance policy. Minimum liability policies cost $728 per year on average.
  • Liability-only insurance will not cover damages to your vehicle after an at-fault accident. For that, you’ll have to add comprehensive and collision coverage, creating a full coverage policy.
  • Full coverage policies cost $1,270 per year on average. Only pay extra for full coverage if your car is valuable enough to be worth the extra cost.

How to Shop for a Cheap Liability-Only Policy

MoneyGeek’s analysis found that drivers can save up to 47% on their insurance policies by shopping around for car insurance online and getting multiple quotes.

When searching for the best auto insurance, consider getting quotes from at least three different companies. Keep in mind that many factors influence liability-only car insurance rates. The easiest way to shop and compare is to get multiple online quotes for free. In most cases, shopping online can also get you a policy on the same day.

In order to get an accurate quote, make sure you have the following information at the ready: the make, model and year of the vehicle that needs to be insured; the information for any drivers in the household (such as birthdate and driver's license number); and your current address, former addresses and the occupations of all the drivers on the policy.

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Frequently Asked Questions About Liability Car Insurance

On average, liability auto insurance is over 40% cheaper than full coverage insurance, but there are risks associated with getting the lowest amount of coverage. Low liability insurance limits will not cover you for claims running upwards of hundreds of thousands of dollars. And your own vehicle won't be covered at all. Knowing the limits and risks of liability insurance can help you make an informed decision when selecting auto insurance coverage.

Expert Advice: Understanding Liability-Only Car Insurance

  1. What type of driver should consider liability-only car insurance?
  2. Why is liability-only car insurance less expensive than full coverage?
  3. What are the primary risks for liability-only car insurance and who should consider full coverage?
  4. Is there anything state and local governments can do to promote cheap car insurance rates?
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Assistant Professor of Finance at California State University, Fullerton

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Emeritus Professor of Economics at the University of California, Irvine

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Assistant Professor of Finance at Southern Illinois University Edwardsville

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Clinical Assistant Professor of Marketing and MS Marketing Program Director at the McCombs School of Business at The University of Texas at Austin

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Assistant Professor at the University of San Francisco School of Management

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Professor of Economics at Stephen F. Austin State University

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Director, Center for Innovation and Professional Development at Webster University

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Professor of Marketing at Winthrop University

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Continuing Lecturer at The Rady School of Management, UC San Diego

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Lecturer of Finance, Gies College of Business at the University of Illinois

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Assistant Professor of Marketing at the University of Wisconsin-Green Bay

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Dr. Ashford Maharaj

Adjunct Professor of Finance at Metropolitan College of New York

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Professor of Economics and History at Eastern Florida State College

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Assistant Professor of Marketing at Southwestern Oklahoma State University

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Professor of Marketing at The University of Scranton

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Dr. Kevin E. McEvoy

Assistant Professor in Residence at the University of Connecticut

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Kenneth Roskelley

Professor of Finance at Mississippi State University, College of Business

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Associate Professor of Finance at California State University, Long Beach

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Professor of Business and Economics at Johns Hopkins University

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Professor of Finance, Risk Management and Insurance at the University of Hawaiʻi

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Department Chair and Professor of Economics and Management at Albion College

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Entrepreneurship Program Director at Milwaukee Area Technical College

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Money Education Advisor III at Texas A&M University

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Associate Professor and ​Graduate Program Coordinator at The University of Alabama

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Associate Professor of Marketing at the University of Wisconsin-Parkside

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Assistant Professor of Business and Management at Palm Beach Atlantic University

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Clinical Professor of Finance at the University of San Diego School of Business

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Associate Professor of Marketing at George Mason University

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Associate Professor of Marketing at Duquesne University

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Professor of Economics at Sonoma State University

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Executive in Residence and Lecturer, Wealth Management at Fairleigh Dickinson University

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Assistant Professor, School of Business at Endicott College

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Associate Professor at the Daytona Beach Campus of Embry Riddle Aeronautical University

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Professor & Dean, School of Business and Family & Consumer Sciences at Carson-Newman University

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Clinical Professor of Law at the University of Notre Dame

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Professor of Marketing at the University of West Georgia

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Associate Professor of Entrepreneurship at Gonzaga University

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Assistant Professor of Marketing at Northern Michigan University

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Assistant Professor of Finance at California State University, Bakersfield

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Assistant Professor of Marketing at Southern Illinois University

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About Laura Longero


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Laura Longero Holman is an award-winning writer and editor who lives in sunny Reno, Nevada. Nevada is home to some of the country's highest auto insurance rates, so she is experienced in shopping around for coverage.


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