Cheap Liability-Only Car Insurance in 2022

How much cheaper is liability-only coverage?

Liability-only car insurance is significantly cheaper than full-coverage insurance. Your insurance bill could be reduced by more than half by dropping optional coverage: Across 37 insurers, liability-only cost an average of 60% less.

Liability insurance makes up nearly half of the total cost of a full coverage insurance policy , with the lion’s share of the difference in price being contributed by collision coverage.

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Full-coverage insurance generally includes:

Liability protection above the minimum requirement Collision and comprehensive coverage Any other coverages required by law, such as personal injury protection (PIP)

It’s free, simple and secure.

Dropping collision and comprehensive coverage puts you at much greater financial risk if you are ever in an accident. If you opt for liability-only coverage, insurance would not pay for damages to your vehicle in any of the following situations:

You are at fault in an accident. You are the victim of a hit and run (if you aren’t required to have UIM coverage). Your car is damaged by weather, hail or animals. Your car is keyed or vandalized.

The difference in cost between liability-only and full coverage policies varies by an average of 61% across top car insurance companies.

Company Minimum coverage cost Full coverage cost Difference USAA$437$1,170$733Farm Bureau$472$1,576$1,104Auto-Owners$484$1,579$1,095Erie$503$1,379$876State Farm$532$1,310$778Show All Rows

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When You Should Consider Liability Only Coverage?

Here are four situations where liability-only coverage is most suitable, check out if these apply to you:

  1. You have an alternate vehicle and you don’t drive the car much: Do you prefer to move around on a bicycle or a bus and use your car only in emergencies? If yes then you can perfectly rely on liability-only coverage. Because at the end you know that your car is going to be in the garage only most of the time.
  2. You can afford a new car if this one is stolen: If you know that your present car is not that valuable and it would be better to replace it. In such situations, you can skip the full coverage insurance and get the basic liability-only coverage.
  3. The damage risk is low: If you are a responsible and experienced driver then the chances of getting into an accident are low. You avoid driving at night, you never drive under the influence and you are not younger. As a result; you can try your luck to get liability-only coverage.
  4. The chances of your car getting stolen are low: If you know that the crime rate in your area is comparatively low and you have high security. Also; if you park your car in a garage or you have a dedicated parking space in your office. In such situations, the car is usually safer and you can go for liability-only coverage.

Liability-only Insurance Rates After Ticket or Accident

A risky driver always gets higher insurance rates for any type of coverage. So who exactly is a Risky driver? A driver with a traffic violation ticket with a DUI or speeding ticket or a driver with an at-fault accident. These two factors define if a driver is going to file huge claims or not.

So if a driver already had an at-fault accident on the record then there are chances of getting into an accident again. Similarly, if a driver already got a DUI ticket that means the driver is irresponsible and can get into an accident.

Now let’s have a look at the top companies which provide affordable rates of liability-only insurance after a ticket.

CompanyState Minimum Liability
USAA*$459
GEICO$762
Nationwide$834
State Farm$802
Allstate$887
Progressive$956
Farmers$1,123
Travelers$1,078
MetLife$1,168

It is clear from the table that USAA provides the lowest rates but it provides coverage to only military members and veterans. If you are neither a military member nor a veteran then you can go for GEICO.

Frequently asked questions

Liability car insurance is coverage that pays for damage to others when you’re at fault in an accident. It includes coverage for bodily injuries as well as property damage. Liability coverage is required in nearly every state.

Liability-only car insurance only includes liability protection and no other optional coverages like comprehensive or collision. People with older, less expensive cars should consider getting liability-only car insurance instead of full coverage. Older cars are worth less than newer ones, so carrying comprehensive and collision has a lower maximum payout.

All cars on the road are required to have the legal minimum amount of liability car insurance, including rental cars — you’ll get the legal minimum coverage automatically as part of your rental. You have the option to purchase supplemental liability coverage, which boosts your coverage beyond the legal minimum.

The cheapest widely available liability-only car insurance we found comes from Farm Bureau at $39 per month. USAA is cheaper but is not available to all drivers, while Auto-Owners, Erie and State Farm are all affordable options.

If your car is totaled (the cost to repair it exceeds its value) or stolen and you only have liability insurance, you’ll have to pay to replace your car yourself unless another driver was at fault. Liability insurance only pays for damage to other people’s cars, not your own.

Do you need full coverage car insurance?

When is full coverage worth it?

Full coverage car insurance is worth buying in many situations. When you include comprehensive and collision insurance policies, you cover the actual cash value of your car. That means that if your vehicle is totaled in a car accident, you’ll get roughly as much for it as if you sold it. This can protect you financially and offer peace of mind.

Therefore, full coverage car insurance is probably worth it if you are in one of the following situations:

  • Your vehicle is leased or financed
  • You have a new vehicle (less than 10 years old)
  • You can’t afford to replace your vehicle out of pocket if it is destroyed in an accident or act of nature
  • Your vehicle is a high-value luxury vehicle

When is full coverage not worth it?

As your vehicle ages, its value drops. The general rule of thumb is that once your car is more than 10 years old, it is not worth purchasing full coverage insurance.

To decide if you should purchase full coverage insurance, calculate the value of your vehicle and compare this amount against your expected premiums. A good tool for calculating your car’s value is Kelley Blue Book. If the amount you spend on your annual premiums isn’t much less than your car’s value, you may want to skip full coverage.

Things to consider when purchasing liability-only car insurance coverage

Unless you live in New Hampshire or Virginia, where car insurance is not required, you will need to purchase at least the minimum car insurance limits to drive legally in your state. However, you can purchase higher liability limits and still have liability-only car insurance. Higher limits can better protect your finances.

For example, imagine that you cause an accident in Mississippi, where you carry just the required 25/50/25 minimum limits. This means that you have $25,000 in bodily injury liability coverage per person, $50,000 in bodily injury liability coverage per accident and $25,000 in property damage liability coverage. If you cause $100,000 in total injuries, your policy will still only pay up to $50,000. You will be responsible for the other $50,000. And if you total the other party’s car to the tune of $30,000, you’ll have to pay that extra $5,000 out of pocket, too.

If you had higher limits, say 100/300/100, your policy would have covered the entire $100,000 injury costs and the full $30,000 vehicle repair costs. Higher limits may cost more, but they could help you maintain financial stability if you cause an accident.

Liability-only coverage might be a good fit for you if:

  • You own your car outright: If you have a loan or lease on your vehicle, you will very likely be required to carry full coverage, so liability-only coverage is probably only an option if you own your car in full.
  • Budget is your primary concern: Because full coverage provides greater financial protection in the form of coverage for damage to your car, it is generally more expensive than minimum coverage or liability-only coverage.
  • Your vehicle is not worth much: If your vehicle is older and does not have a high value, it may not make financial sense to pay for full coverage.
  • You are not concerned about vehicle damage: If you are not worried about damage to your vehicle and do not think you would repair damages, liability-only might be a good choice.
  • You have the finances to repair or replace your car: If you own your car outright and have the finances to repair or replace it if it is damaged, without putting a significant strain on your financial health, liability-only coverage could be a viable option.

If you are unsure if liability-only coverage is right for you, working with an agent could be helpful. An agent can listen to your situation and help you choose coverage that is appropriate.

Cost of liability-only car insurance

Each state has unique laws and risk levels that affect the cost of liability car insurance. Because of this, buying only minimum coverage could save you more money in some states than it may in others. For example, the average annual cost of car insurance for minimum coverage in Maine is $294, which saves $671 compared to the cost of full coverage. But the annual cost of minimum coverage in Louisiana is $975, over $1,700 cheaper than full coverage in the state.

While full coverage insurance does usually cost more than minimum coverage, it provides a greater level of financial protection. Full coverage includes comprehensive coverage and collision coverage, which cover damage to your vehicle — something that is not included in minimum coverage.

State Average annual premium for minimum coverage Average annual premium for full coverage Difference
Alabama $469 $1,623 $1,154
Alaska $373 $1,559 $1,186
Arizona $555 $1,547 $992
Arkansas $470 $1,914 $1,444
California $733 $2,065 $1,332
Colorado $518 $2,016 $1,498
Connecticut $794 $1,845 $1,051
Delaware $787 $1,775 $988
Florida $1,101 $2,364 $1,263
Georgia $756 $1,982 $1,226
Hawaii $345 $1,127 $782
Idaho $307 $1,045 $738
Illinois $442 $1,485 $1,043
Indiana $367 $1,254 $887
Iowa $252 $1,260 $1,009
Kansas $410 $1,698 $1,288
Kentucky $748 $2,128 $1,380
Louisiana $975 $2,724 $1,749
Maine $294 $965 $671
Maryland $767 $1,877 $1,110
Massachusetts $510 $1,223 $713
Michigan $948 $2,309 $1,361
Minnesota $537 $1,643 $1,106
Mississippi $492 $1,782 $1,290
Missouri $468 $1,661 $1,193
Montana $342 $1,737 $1,395
Nebraska $335 $1,531 $1,196
Nevada $860 $2,245 $1,385
New Hampshire $389 $1,275 $886
New Jersey $847 $1,757 $910
New Mexico $385 $1,419 $1,034
New York $1,062 $2,321 $1,259
North Carolina $413 $1,325 $912
North Dakota $285 $1,264 $979
Ohio $328 $1,034 $706
Oklahoma $423 $1,873 $1,450
Oregon $610 $1,346 $736
Pennsylvania $427 $1,476 $1,049
Rhode Island $749 $2,018 $1,269
South Carolina $558 $1,512 $954
South Dakota $275 $1,642 $1,367
Tennessee $371 $1,338 $967
Texas $524 $1,823 $1,299
Utah $528 $1,306 $778
Vermont $292 $1,207 $915
Virginia $441 $1,304 $863
Washington $463 $1,176 $713
Washington DC $704 $1,855 $1,151
West Virginia $458 $1,499 $1,041
Wisconsin $332 $1,186 $854
Wyoming $271 $1,495 $1,224

What is full coverage car insurance?

“Full coverage” is a term used to describe a car insurance policy that includes liability coverage as well as comprehensive and collision coverage. A full coverage insurance policy might also include medical coverage and uninsured/underinsured motorist coverage (UM/UIM).

Here’s what each of these types of insurance includes:

  • Collision insurance: This policy pays for the cost of damages to your vehicle after an accident. It includes collisions with other vehicles and road hazards. Collision coverage does not include accidents involving animals.
  • Comprehensive insurance: Comprehensive coverage pays for damages to your vehicle that are caused by an animal, natural disaster, theft or vandalism.
  • Medical payments (MedPay): This pays for expenses such as medical bills and lost wages for you and your passengers.
  • Personal injury protection (PIP): This pays for medical bills for you and your passengers and is mostly used in no-fault states.
  • : If you are in an accident where the other driver is at fault and is uninsured, this coverage will cover related property damage and medical costs. It may also make up the difference if the other driver is insured but their policy does not fully cover the cost of damages.

Full coverage car insurance is not required by law in any state. However, if you finance or lease your vehicle, your lender may require that you maintain full coverage insurance as part of the lease or loan agreement.

Affordable car insurance really is that simple

With GEICO, you don’t have to compromise quality for a low-cost car insurance policy. We work hard to make sure “cheap” only describes your car insurance rates and not the quality of service or your experience as a policyholder. Find out why drivers are switching to GEICO and get a free auto insurance quote today.

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