Cheapest Liability-Only Car Insurance

GEICO is the cheapest liability only insurer nationally at $43 per month, 35% below the national average of $67. Travelers and National General are both affordable at $50 per month but serve very different driver profiles. Travelers is the better option for homeowners who can stack bundling discounts on top of an already competitive base rate. National General is the right starting point for drivers with violations or non-standard risk profiles that standard insurers decline to quote.

Liability only policies cost 60 to 70 percent less than full coverage for the same driver. The savings are real but come with a trade-off. If you cause an accident that exceeds your limits or your own vehicle is damaged, you pay out of pocket. See our guide to how much car insurance you need before deciding minimum coverage is right for your situation.

Not every driver gets the cheapest liability rate from the same insurer. Use the chart below to match your driving profile and find which company is the cheapest for you.

Liability rates vary across age groups. Teens pay two to three times the adult rate due to high accident frequency. Rates drop steadily through the 20s, reach their lowest point for drivers in their 50s and 60s and rise again after 65. The cheapest insurer shifts by age group, which is why a national average rate is rarely useful for drivers at either end of the age range.

National General is the cheapest insurer for young drivers aged 16-24 at $101 per month, 37% below the national average for this age group. GEICO's rate is similar at  $105 per month.  

National General leads on price but has an NAIC complaint index of 3.17, meaning significantly more customer complaints than its industry peers. For young drivers, GEICO's $4 monthly difference buys meaningfully better service and a fully digital experience that makes policy management straightforward. If price is the only consideration National General is the right call. If service quality matters, GEICO is worth the extra $48 per year.

Staying on a parent's policy is almost always the right call for drivers under 25 as long as you live at the same address. Families save 10 to 60 percent compared to a standalone policy for the same young driver depending on the age of the driver.

*Rates are based on adding a teen or young adult (Age 16–24) to a parent's established policy.

GEICO offers the cheapest liability only car insurance for seniors at $56 monthly, 35% below the $87 senior average. We found that GEICO leads on price but scores below average on claims satisfaction. Seniors file claims more frequently than middle-aged drivers, making that trade-off worth considering before defaulting to the lowest rate. State Farm at $62 is worth the extra $6 per month for seniors who want a local agent and a more hands-on claims experience.

Senior rates rise after 65 due to higher accident frequency, but drivers with clean records and low annual mileage can offset much of that increase through senior discounts. Seniors driving fewer than 10,000 miles per year should ask about low-mileage discounts at renewal. GEICO's DriveEasy and Progressive's Snapshot both reward low-mileage drivers with rate reductions and are worth enrolling in if your annual driving has decreased in retirement.

GEICO offers the cheapest liability only coverage in 13 states averaging $36 per month and State Farm leads in nine states at $28 per month. Regional insurers beat both in the remaining states. Farm Bureau, Westfield and other local insurers price regional risks.

The percent difference column in the table below tells you how much comparison shopping pays off in your state. In Alabama the cheapest insurer is 60 percent below the state average, meaning there is a clear winner and finding it saves more money. In other states that gap is smaller, meaning most insurers price similarly and switching insurers means less savings.

Here are our guides for deeper research on the cheapest liability car insurance rates in your state:

• Texas
• Illinois
• Ohio
• Georgia
• California
• Missouri
• Tennessee

A violation does not mean you are stuck overpaying. In our analysis the gap between the most and least forgiving insurer after a single at-fault accident is $400 per year for the same driver. The insurer that is cheapest with a clean record is rarely the cheapest after a violation, which is why shopping after any incident is worth the effort. 
State Farm is the cheapest for drivers with most violations while GEICO is the lowest cost for distracted driving and not-at-fault accidents. Here is what our data shows by violation type:

• At-fault accident: State Farm offers the most affordable liability coverage after an at-fault accident at $62 per month, 34% below the high-risk average. Most at-fault accidents stay on your record for three to five years.
• Speeding ticket: State Farm also has the cheapest rates after a speeding ticket at $56 per month. Most moving violations impact your rate for three to five years.
• Texting while driving: GEICO is the most affordable option after a distracted driving ticket at $55 per month. In our research insurers vary more on how they price texting violations than almost any other incident type.
• DUI conviction: State Farm offers the lowest rates after a DUI at $73 per month. DUI offenses stay on your record for three to 10 years and often require an SR-22 filing. Drivers with a suspended license and no vehicle may need non-owner car insurance.
• Not-at-fault accident: GEICO is cheapest at $45 per month. Most insurers still raise rates after a not-at-fault accident and GEICO keeps that increase lower than most competitors.

Most violations fall off your record after three to five years and your rate drops at each renewal as they age off. A DUI typically takes five to seven years to fully clear depending on your state, while a speeding ticket or at-fault accident usually stops affecting your rate after three years. Set a reminder to requote at that three year mark. That is often the first point where switching back to a standard carrier saves meaningful money.

National General is the cheapest insurer for drivers with poor credit at $61 per month, with GEICO one dollar behind at $62. At that range, the decision comes down to claims experience rather than price. National General carries an NAIC complaint index of 3.17, more than three times the industry average. GEICO's complaint index is well below average, its app handles most policy needs without a call and it scores higher on customer satisfaction across every profile we analyzed. For a $1 monthly difference, GEICO is the stronger pick for most drivers with poor credit.

Poor credit raises liability premiums by 34% or more in most states, making it one of the largest rate factors outside of a DUI. California, Hawaii and Massachusetts prohibit credit-based pricing entirely, so drivers in those states pay the same rate regardless of credit history. Everywhere else, moving from poor to good credit cuts premiums by $20 to $50 per month without changing your coverage or carrier, making credit improvement one of the most effective long-term rate levers available.

USAA is the cheapest insurer for active duty military, veterans and their eligible family members at $28 per month, 47% below the national average. GEICO is the strongest alternative. It uniquely offers a dedicated military discount cuts 12 to 15 percent off the base rate and it has a dedicated military customer service team staffed with veterans available 24 hours a day. In our analysis GEICO's effective rate after the military discount is often competitive with or cheaper than non-military specialized carriers for this profile.

In our analysis of liability rate factors, these six strategies produce the most consistent savings on liability only policies.

We get it, car insurance is expensive and liability-only coverage is cheaper than full coverage. See the table below to see the difference in coverage between the two.

It works best when your car is paid off and worth less than $5,000. At that point the annual cost of comprehensive and collision (full coverage) is expensive to insure a low value car.  See our guide to how much car insurance you need.

As Mark Friedlander of the Insurance Information Institute puts it: "Liability only coverage leaves drivers financially responsible when it comes to their own vehicle. If you cause an accident and cannot afford to repair or replace your car out of pocket, full coverage is worth the extra cost."

If you are financing or leasing, liability-only is not an option. Your lender requires full coverage and if you drop it they will force-place insurance at two to three times the cost. 

Here is the comparison of liability-only cost vs full coverage.

For most clean-record adult drivers, GEICO at $43 monthly is the right starting point for liability only coverage. If you own a home or bundle policies, Travelers at $50 is worth comparing since its bundling discount can close or eliminate the gap. For drivers with violations or non-standard risk profiles, National General is the right starting point despite its lower claims satisfaction scores. Military families should check USAA first at $28 monthly before comparing anyone else.

The biggest mistake we see drivers make is staying with their current carrier after a violation. In our analysis the gap between the most and least forgiving insurer after a single at-fault accident is $400 per year for the same driver. That gap is worth an hour of your time at every renewal.

Next Steps

1. Find your profile in the tables above and note the two cheapest carriers for your situation.
2. Get quotes from both, plus the leading regional carrier in your state from the state table above.
3. If you have poor credit, prioritize GEICO over National General for the better claims experience at nearly the same price.

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

We designed this research to identify the most accessible liability coverage options without sacrificing accuracy.

Data Collection

Our team gathered 2,474,515 quotes from 607 insurance companies in 3,523 ZIP codes nationwide. We got this information directly from state insurance departments and Quadrant Information Services, then compared the actual prices people pay.

Sample Driver Profile

We calculated average annual car insurance rates using this sample driver profile:

• 40-year-old male driver
• Driving a Toyota Camry LE
• No on-record violations
• Good credit score
• Clean driving record with no claims history

We adjusted this profile by age, driving record, credit score and car type to get rates for different driver types, including high-risk profiles with violations and drivers with poor credit.  See our full methodology.