Cheapest Liability-Only Car Insurance for You

GEICO offers the cheapest liability-only car insurance for most drivers, at average rates of about $45 per month or $543 per year for state liability coverage.  Your driving profile may be different, so see the table below to find the cheapest liability car insurance for you.

To find the cheapest liability-only car insurance rates, the MoneyGeek insurance team analyzed 83,056 quotes from 45 companies across 473 ZIP codes. Our analysis was based on data we collected from state insurance departments and the latest rates available this month.

Along with GEICO, Travelers, Progressive, State Farm, and Nationwide also offer affordable liability-only coverage. Use the table below to compare average liability-only rates and coverage levels across top insurers.

Although GEICO is cheapest for most drivers, the lowest rate available to you depends on your unique situation. We've highlighted the lowest average rates for each driver profile below: State Farm offers the best rates for seniors ($535/year), drivers with speeding tickets ($650/year), and after accidents ($719/year), while Progressive is cheapest for drivers with DUIs ($679/year), and Nationwide provides the most affordable coverage for those with bad credit ($865/year).

As the table below displays, the state you live in has a significant impact on car insurance rates. Here are the companies with the cheapest averages rated for minimum liability-only coverage policies for each state.

States across the U.S. set different minimum liability-only car insurance requirements, typically expressed as three numbers (like 25/50/25) representing thousands of dollars in coverage for bodily injury per person, bodily injury per accident, and property damage. See your state's minimum coverage requirements.

While national insurers like GEICO and State Farm offer competitive rates across many states, regional insurance companies often provide the cheapest liability-only coverage in specific areas they serve. Companies like Cincinnati Insurance, Auto-Owners, and Farm Bureau insurers in rural areas frequently offer rates below the national average—sometimes 10-20% cheaper than major carriers.

A ticket, at-fault accident, or DUI on your record will increase your liability car insurance cost because your driver profile is more risky for the insurance company. Violations will stay on your record and impact your liability insurance cost for an average of 3-5 years.

For those with a ticket, State Farm has the cheapest liability-only car insurance for $650 annually ($54/month). State Farm also offers the cheapest liability-only after an accident for $719 annually ($60/month). Below are the cheapest companies for each violation type.

State Farm offers the cheapest liability-only coverage for drivers after a speeding ticket, with average rates of $650 per year or $54 per month. See the table below to compare providers offering liability-only coverage for drivers with a speeding ticket.

More Information: Ranking the cheapest car insurance for high risk drivers with a ticket.

With rates averaging $719 per year ($60 per month), State Farm provides the cheapest liability-only coverage for drivers after an at-fault accident.  

Major auto insurers offering accident forgiveness include Allstate, Nationwide, Progressive, Liberty Mutual, GEICO, State Farm, Farmers, The Hartford, American Family, and USAA.  While some providers include accident forgiveness automatically after a clean driving period, others offer it as a paid add-on, and availability may be limited by state regulations, with California notably prohibiting these programs entirely.

The table below shows a list of major insurers offering affordable coverage for at-fault drivers.

For drivers with a DUI or DWI, Progressive offers the cheapest rates for liability-only coverage, averaging $679 per year ($56 per month). Check the table below for a list of insurance providers and their average annual cost for drivers with DUIs.

More Information: See the Best Cheap Car Insurance with a DUI

Insurers may use a credit-based insurance score to calculate insurance premiums in all states except California, Hawaii, Massachusetts and Michigan. With rates averaging $865 per year, Nationwide is the cheapest company offering minimum liability-only coverage for drivers with poor credit.

Improving your credit score can result in cheaper liability-only car insurance premiums. For liability-only policies specifically, the savings might typically range from 20-45%, depending on the insurer and state.

More Information: Ranking of the best cheap car insurance if you have bad credit

Age is one of the most important considerations when determining the cost of car insurance. Insurers tend to charge higher rates to teens, younger drivers and drivers over 75 due to inexperience or perceived risk factors, including higher accident rates and potential health issues affecting driving ability in seniors. Despite these higher premiums, finding inexpensive car insurance for these age groups is still possible.

GEICO is the cheapest liability-only car insurance for young drivers and teens aged 16 to 19. 

Teens and young drivers can often find the cheapest liability coverage when added to a family policy, potentially saving 40-60% compared to individual policies. Below are the cheapest liability rates available for family policies that include young drivers:

Although rates tend to decrease as you age, premiums typically rise again for seniors because drivers aged 65 and older account for nearly 10% of crashes.   See our ranking of the cheapest car insurance for seniors and car insurance discounts for seniors.

Below are the cheapest average minimum coverage rates for senior drivers.

The cheapest car to insure with state-minimum liability-only insurance is the Mazda CX-5, which costs $364 per year from Nationwide. The Ford Expedition is the most expensive on the list to insure, costing about $384 per year.

Liability-only car insurance provides financial protection when you're at fault in an accident. It specifically covers:

1. Bodily Injury Liability: This covers medical expenses, lost wages, and potentially legal costs for injuries you cause to others in an accident.
2. Property Damage Liability: This pays for damage you cause to other people's property, such as their vehicle, home, fence, or other structures.

State Requirements for Liability-Only Policies

State Requirements for Liability-Only Policies Almost every state except New Hampshire requires drivers to carry at least some level of liability coverage. Florida is the only state that doesn't require bodily injury liability (it only requires property damage liability).

See your state's minimum requirements for liability coverage, PIP, UM, and MedPay.

Depending on your state, additional coverages may be required as part of what's considered a "minimum liability" policy:

1. Personal Injury Protection (PIP): In 12 "no-fault" states (Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah), drivers must also get PIP coverage. This pays for your medical expenses, lost wages, and other injury-related costs after an accident, regardless of who was at fault. In these states, drivers must file bodily injury claims with their own insurance through their PIP coverage first, regardless of who caused the accident.
2. Uninsured/Underinsured Motorist Coverage (UM/UIM): Many states require this coverage, which protects you if you're in an accident with a driver who either has no insurance or insufficient coverage to pay for your damages and injuries.
3. Medical Payments Coverage (MedPay): Some states require this coverage, which helps pay for medical expenses for you and your passengers regardless of fault. It's similar to PIP but typically more limited in scope.

What Liability-Only Car Insurance Does NOT Cover It's important to understand what liability-only insurance doesn't cover:

1. Your Vehicle: It doesn't cover repairs to your own car in accidents, regardless of fault (you'd need collision coverage for that).
2. Your Medical Expenses: Your own injuries aren't covered under basic liability (you'd need MedPay, PIP, or health insurance).
3. Natural Disasters/Weather Damage: Damage to your car from hail, floods, fires, etc. isn't covered (you'd need comprehensive coverage).
4. Theft or Vandalism: If your car is stolen or vandalized, liability-only won't pay for repairs or replacement (comprehensive coverage would).

Estimating how much car insurance you need depends on your state's minimum or higher coverage to protect you in the case of a bad accident. Liability-Only Coverage: Covers damage you cause to others (bodily injury + property damage), not damage to your own vehicle.  Here are the various levels of coverage and what they mean for you.

Three Numbers (e.g., 50/100/50):

• First: Bodily injury limit per person (in thousands of dollars).
• Second: Total bodily injury limit per accident (in thousands of dollars).
• Third: Property damage limit per accident (in thousands of dollars).

State Minimum Coverage:

• Varies by state; each state sets its own required minimums.
• Example: California requires 15/30/5; Texas requires 30/60/25.

Common Coverage Levels:

• 50/100/50: Moderate coverage; higher than many state minimums.
• 100/300/100: More robust protection; often recommended.
• 250/500/250: High-limit policy; offers significant financial protection.

State minimum liability requirements rarely provide adequate financial protection. Set your liability limits high enough to cover your net worth—including home, savings, investments, and other assets—which could be at risk in a lawsuit following a serious accident. With $300,000 in assets but only $50,000 in liability coverage, you could be personally liable for significant damages beyond your policy limits. Consider liability limits of at least 100/300/100 or higher, potentially supplemented with an umbrella policy for comprehensive protection.

Liability-only insurance won't cover your vehicle if you cause an accident or if your vehicle incurs damages outside your control. Adding comprehensive and collision insurance to create a full coverage policy provides additional financial protection against expenses from repairs and replacements resulting from an at-fault or single-car collision.

If you're unsure whether to choose a liability-only policy or full coverage policy, we highlight scenarios below that help you consider the costs, associated risks, and when each coverage level is more appropriate. On average, full coverage costs $800-1,200 more annually than liability-only insurance, but this difference can be worth the investment for newer or more valuable vehicles where repair or replacement costs would be substantial.

Your vehicle's characteristics should strongly influence your decision between liability-only and full coverage insurance:

When Liability-Only Makes Sense for Your Vehicle

• Older Vehicles: For cars 10+ years old with market values under $3,000-$4,000, liability-only coverage often makes financial sense. If your comprehensive and collision premiums plus deductible exceed 10% of your car's value annually, liability-only is typically more cost-effective.
• Low-Value Vehicles: The average cost of collision coverage is $290 annually plus a deductible of $500-$1,000. If your vehicle is worth $2,000, paying for collision coverage doesn't make mathematical sense.
• Secondary or Rarely-Used Vehicles: Cars driven infrequently have lower accident risk, making liability-only coverage a reasonable choice, especially for "backup" vehicles.

When Your Vehicle Needs More Than Liability-Only

• Newer Vehicles: Cars less than 5 years old typically retain enough value to warrant full coverage protection. The average new car costs $48,000 in 2025, representing a significant asset worth protecting.
• Leased or Financed Vehicles: Lenders typically require full coverage with deductibles of $500 or less until the loan is paid off, making liability-only coverage not an option for these vehicles.
• High-Value Vehicles: Luxury cars, sports cars, and specialized vehicles have higher repair and replacement costs, making comprehensive and collision coverage essential even if they're several years old.

Read More: Cheap No Down Payment / No Deposit Car insurance

Find out how much you could save with these liability-only insurance discounts from top providers that were ranked cheapest in our analysis:

GEICO — Cheapest Liability-Only Overall

• Multi-policy bundle: 15-25% savings ($80-$135/year)
• Military discount: 15% average savings ($80/year)
• Good student discount: Up to 15% off ($80/year)
• Vehicle safety features: 5-23% savings ($25-$125/year)
• Defensive driving course: 10-15% discount ($55-$80/year)
• Federal employee discount: 8% average savings ($45/year)

State Farm — Cheapest for Violations & Seniors

• Drive Safe & Save: Up to 30% savings ($170/year)
• Steer Clear program: Up to 15% off for young drivers ($80/year)
• Good student discount: Up to 25% savings ($140/year)
• Defensive driving course: 10-15% discount ($55-$80/year)
• Vehicle safety features: 5-15% savings ($25-$80/year)
• Multi-policy bundle: Up to 20% off ($110/year)

Progressive — Cheapest for DUI Coverage

• Snapshot program: Average $146/year savings
• Multi-policy bundle: Up to 12% discount ($65/year)
• Continuous insurance: Up to 15% savings ($80/year)
• Paperless billing: 7% average discount ($40/year)
• Pay in full discount: 10% average savings ($55/year)
• Safe driver discount: Up to 20% off ($110/year)

Travelers — Second Cheapest Overall

• Multi-policy bundle: 10-12% discount ($55-$65/year)
• EFT & pay in full: 7.5% average savings ($40/year)
• Good student discount: 8% average discount ($45/year)
• IntelliDrive program: Up to 20% savings ($110/year)
• New car discount: 10% average savings ($55/year)
• Home ownership discount: 5% average off ($25/year)

Nationwide — Cheapest Liability Coverage for Bad Credit

• SmartRide program: Up to 40% savings ($215/year)
• Multi-policy bundle: Up to 20% discount ($110/year)
• Good student discount: Up to 15% off ($80/year)
• Defensive driving course: 10% average savings ($55/year)
• Automatic payment: 5% average discount ($25/year)
• Safe driver discount: Up to 10% off ($55/year)

Note: Actual savings vary based on your driving history, location, and personal factors. Discount availability varies by state. Dollar amounts based on average liability-only policy costs.

Regardless of your coverage limits, liability-only car insurance tends to be significantly cheaper than full coverage because full coverage has added comprehensive and collision insurance, which financially protects your vehicle after a covered incident.

Although it's more expensive, experts recommend full coverage insurance to avoid higher out-of-pocket costs for repair. In the table below, we compared average rates for a minimum coverage policy and full coverage policy (with a $1,000 deductible) from different leading companies. See our ranking to find cheap full coverage car insurance policies.

"No deposit" liability-only insurance typically means you're paying for your first month of coverage rather than a separate deposit. Most insurers require the first month's premium upfront but will refund unused premium if you cancel, making this different from a non-refundable deposit.

Companies with Flexible Payment Options for Liability-Only Car Insurance

• GEICO: First month payment as low as $30 with flexible payment dates to align with your paycheck.
• Progressive: Name Your Price® tool helps find coverage within your budget with first month payments starting around $50 for liability-only.
• State Farm: Offers first month payment options starting at $54 with no fees for monthly payment plans at many locations.
• Travelers: Provides electronic funds transfer discounts with first payments averaging $47 for liability coverage.
• Nationwide: Features flexible payment scheduling with initial payments starting from $55 for minimum liability policies.

In this guide, we identified the cheapest liability-only providers across major driver segments. GEICO leads with $45 monthly rates for most drivers, while State Farm, Progressive, and Nationwide offer better deals for drivers with violations, DUIs, and poor credit, respectively. We've provided strategies to lower your premiums and guidance on when liability-only makes financial sense for low-value vehicles.

Below are some frequently asked questions and answers about liability-only car insurance:

Cheap Liability-Only Rankings and Quote Data
MoneyGeek gathered and analyzed rates using a sample driver profile to determine company averages for the cost of liability-only insurance, how liability-only rates compare to full coverage rates and how rates may change for risky driver profiles (drivers with at-fault accidents and tickets).

Data Sources and Depth

We collected data from state insurance departments and Quadrant Information Services and analyzed 83,056 quotes from 46 companies across 473 ZIP codes.

Sample Driver Profile

To determine overall average annual car insurance rates, we used the following sample driver profile:

• 40-year-old male driver
• Driving a Toyota Camry LE
• No on-record violations

We modified this sample profile by age, driving record and car make/model where specified to provide average rates for a variety of drivers.

Coverage Levels Explained

Rates collected were for policies meeting the minimum requirements in a given state or for increased liability coverage. Increased liability coverage refers to a policy with 50/100/50 liability limits, which is shorthand for the following:

• $50,000 in bodily injury liability per person
• $100,000 in bodily injury liability per accident
• $50,000 in property damage liability per accident

You can choose how much liability coverage you want on either a liability-only or full coverage policy. The difference between liability-only and full coverage insurance is the addition of comprehensive and collision coverage. A liability-only policy does not include comprehensive and collision coverage.