The Cheapest Liability-Only Car Insurance in February 2023

MoneyGeek analyzed dozens of car insurance companies across hundreds of cities and all 50 states to find the cheapest car insurance companies for liability-only coverage and found that GEICO is the cheapest widely-available insurer for minimum liability-only insurance, at a cost of $513 per year. It's also the cheapest for increased liability limits, with an average rate of $628 per year.

If you're an active or former military member, USAA is usually the cheapest insurer on average. It's more affordable than GEICO for both state minimum and increased liability.

MoneyGeek defines state minimum as an insurance policy only meeting minimum car insurance requirements in a given state, while an increased liability policy has 50/100/50 limits as defined in our methodology.

These rates are limited to companies offering car insurance in 30 states or more. MoneyGeek gathered rates using the sample driver profile as defined in our methodology, but rates will differ depending on an individual’s age, driving record, gender and the type of car insured. If you want a deeper look at what rates might look like for you based on your profile, MoneyGeek has a car insurance cost calculator that allows you to get estimates on the cheapest companies for several different coverage levels.

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. MoneyGeek found that GEICO typically offers the cheapest liability-only insurance to those with a violation on their record.

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.

If you have a ticket on your record, GEICO is the cheapest widely-available insurer on average for drivers with a ticket on their record for both state minimum liability and increased liability. Getting a speeding ticket can add hundreds of dollars per year to your insurance costs.

USAA is most affordable overall but most drivers won't be eligible for a policy. MetLife is at the bottom with the highest average annual premiums.

After an accident, your liability car insurance rates are likely to increase by even more than they would after a speeding ticket. GEICO is the cheapest insurer for state minimum liability insurance after an at-fault accident at $819 per year. An accident can increase your insurance costs by hundreds of dollars per year and cancel out benefits you could obtain by comparing quotes across insurers. For example, if you paid $819 per year as a safe driver, it would be one of the most expensive policies in the country.

State Farm and Nationwide are similarly affordable for drivers with an accident, while USAA remains the cheapest for those who are eligible.

Liability-only car insurance that only meets state requirements for car insurance coverage costs an average of $728 per year. That's almost $150 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; a policy that increases liability limits and adds comprehensive and collision insurance.

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. 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.

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 insurance may be more than your car is worth.

When to buy liability-only insurance:

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.

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 insurance.

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

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.