Cheap Liability-Only Car Insurance: Which Companies Have the Cheapest Liability Car Insurance in 2021

Liability insurance is the most affordable type of car coverage for most drivers. If you are at fault in an accident, liability insurance ensures that you are not responsible for coming up with the money to pay for the damages and injuries you cause. Any costs that exceed your insurance limits will have to be paid by you, so it's important that you purchase the right amount of liability car insurance.

Liability car insurance is generally more affordable than full coverage insurance. Still, it is a riskier option because it doesn't cover your medical bills or damage to your vehicle in an accident. MoneyGeek compared costs from top companies to help you find cheap liability insurance that meets your needs.

MoneyGeek analyzed dozens of car insurance companies across hundreds of cities and all 50 states to find the cheapest car insurance companies for liability coverage. We analyzed only companies that provide coverage in at least 30 states.

USAA is at the top for the lowest state minimum and 50/100/50 liability coverages, while MetLife is at the bottom. The average annual premiums range from $628 to $1,835 for the state minimum and range from $756 to $2,141 for 50/100/50 liability coverage.

These rates are based on a 40-year-old driver with a clean driving record. Rates will differ depending on an individual’s age, driving record, gender and the type of car insured.

Liability auto insurance is the most basic policy you can purchase in most states. Liability auto insurance covers the other driver's expenses in an accident if you are at fault. It covers the other car's occupants' medical expenses and property damage, but it does not cover your own injuries and property damage. Minimum coverage levels vary by state. The average cost of state-minimum liability car insurance is $728 annually.

The next step up in coverage from state-minimum liability coverage is 50/100/50 liability insurance, with an average annual premium of $864. This type of insurance covers the expenses for the other vehicle, with $50,000 in bodily injury protection per person, $100,000 in bodily injury protection per accident and $50,000 in property damage coverage per accident. It does not cover your injuries, medical costs or property damage.

Comprehensive and collision coverage, sometimes known as full coverage, is the best option if you want additional coverage. This type of insurance includes liability coverage, but also provides other benefits, like coverage to replace or repair your vehicle if it is damaged in an accident or event other than an accident. Comprehensive and collision coverage costs an average of $1,270 per year.

State-minimum liability insurance is 42.7% cheaper than collision and comprehensive, while 50/100/50 liability insurance is 32% cheaper than collision.

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 insurance may be more than your car is worth.

For example, say your car insurance company charges you $500 for comprehensive and collision insurance with a $1,000 deductible. If an accident totals your car, you’re effectively paying $1,500 that year for insurance to cover the costs, the sum of your premium and deductible. If your car is worth less than $1,500, you’re paying more for the insurance 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 value of your vehicle.

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 insurance.

Safe drivers with a clean driving record will typically be able to source the most affordable liability car insurance. Getting a ticket or having an accident will usually increase the cost of liability car insurance. If you've recently received a citation or been found at fault in an accident, comparing car insurance quotes may help you find a lower premium if your current insurer increases your rate.

USAA is not available to all drivers — the company offers its products to military members and veterans only.

The table below shows the average annual premiums for state-minimum liability and 50/100/50 liability-only coverage after a ticket for the top nine insurers nationally.

USAA is at the top of the list with an average yearly premium of $473 for state-minimum liability and $566 for 50/100/50 liability coverage, while MetLife is at the bottom with the highest average annual premiums for both state-minimum and 50/100/50 coverage.

According to MoneyGeek's research, USAA, GEICO and Nationwide offer the lowest rates for liability insurance for drivers with a ticket on their record are.

After an accident, your liability car insurance rates are likely to increase as well.

The three lowest-cost insurance companies following an accident for state-minimum liability insurance and 50/100/50 are USAA, GEICO and State Farm.

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 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; and your current address, former addresses and the occupations of all the drivers on the policy.

Liability auto insurance is 42.7% cheaper than comprehensive collision coverage, but it can be risky to choose the cheapest amount of coverage. Cheap liability insurance does not take into account that liability claims for accidents could run into the hundreds of thousands of dollars. Knowing the limits and risks of liability insurance can help you make an informed decision when selecting auto insurance coverage.

Where you live is a factor in determining costs when shopping for car insurance. To find the cheapest liability car insurance where you live, click on your state below.

Average annual car insurance costs are based on a 40-year-old driver with a Toyota Camry LE. Unless otherwise stated, rates are based on a driver without a record of tickets or accidents. Learn more about MoneyGeek’s average premium methodology.