Cheapest Liability-Only Car Insurance 2025

Liability-only auto insurance provides coverage for injuries and property damage you cause to another driver during a car accident. However, it won’t pay for your injuries or damages to your vehicle.

In the following sections, we’ll examine what liability-only car insurance is and which carriers offer the cheapest policies for different classes of drivers.

Cheapest Liability-Only Car Insurance Companies

If you’re searching for the cheapest liability-only car insurance company, then it’s best to start with USAA. While the insurance carrier only covers military members and their families, it still offers the lowest coverage at $348 a year.

The second-cheapest liability-only car insurance coverage is a tie between Auto-Owners and Erie insurance, with both companies averaging about $432 annually.

Below is a look at the five cheapest car insurance companies with liability-only policies.

Cheapest Liability-Only Car Insurance For Teens

As a teen driver, coverage and affordability are crucial, which is why it’s essential to consider cost-effective options, such as USAA. The company currently offers liability-only policies with average annual rates of $1,608, making it the most affordable option on the marketplace.

Other cheap liability-only car insurance companies to consider include State Farm and Travelers Insurance, with average rates at $2,052 and $2,172, respectively.

The following table provides an overview of the companies that teen drivers should consider for the cheapest liability-only car insurance policies.

Cheapest Liability-Only Car Insurance For Seniors

Since many seniors are on a fixed income, choosing a low-cost liability-only car insurance policy, such as USAA, is important for maintaining financial flexibility. The insurance carrier currently offers coverage for around $544 per year.

For seniors without ties to the military, Erie and Shelter Insurance are cost-effective alternatives, offering average annual rates of just over $600.

Here is a look at five of the cheapest liability-only car insurance companies for senior drivers.

Cheapest Liability-Only Car Insurance For Drivers With A DUI

Having a DUI doesn’t mean you can’t find affordable liability-only car insurance. In fact, USAA offers coverage for around $880 a year.

West Bend Mutual and Progressive also provide cheap liability-only auto insurance for drivers with a DUI. Generally, drivers can expect to pay $928 annually with West Bend Mutual and $979 with Progressive.

The table below is a closer examination of which insurance companies to target for affordable liability-only policies if you have a DUI on your driving record.

Cheapest Liability-Only Car Insurance For Drivers With A Speeding Ticket

Speeding tickets often mean a higher monthly premium for coverage. However, drivers can still find affordable liability-only car insurance through USAA, West Bend Mutual, and Erie Insurance.

At USAA, policies average $533 annually, while plans at West Bend Mutual are close to $578, and Erie Insurance is around $639.

Drivers with a speeding ticket should consider the following insurance companies when looking for liability-only coverage.

Cheapest Liability-Only Car Insurance For Drivers With Bad Credit

Although bad credit can impact the premiums you pay for liability-only car insurance, companies like West Bend Mutual still offer affordable coverage with average annual rates of $714.

USAA and GEICO are also important carriers to keep in mind if you’re dealing with bad credit. Currently, USAA offers policies with annual premiums of $743, and GEICO has plans with an average yearly premium of $839.

Although bad credit can significantly impact rates, there is even a major difference between drivers with excellent credit and those with fair credit.

A report from the Consumer Federation of America found that consumers with excellent credit paid $231 less for coverage than drivers with fair credit.

Below are a few other companies to consider when shopping for cheap liability-only car insurance with bad credit.

How Much Is Liability-Only Insurance By State

Since every state has a set of insurance requirements, it can be challenging to identify an overall average yearly premium for liability-only coverage. For example, there is a $1,025 difference between the average annual rate for the cheapest state (Wyoming, at $284) and the most expensive (Michigan, at $1,309).

Below is a helpful guide to highlight the average annual rate you can expect to pay for the state you live in.

How To Find Cheap Liability-Only Car Insurance

Like other types of insurance, finding cheap liability-only coverage comes down to utilizing several strategies. For instance, depending on the type of driving class you fall into, some insurance carriers may be better suited to provide you with coverage.

In the following sections, we’ve outlined several steps you should take to find the most affordable liability-only policy.

Shop Providers

The easiest way to ensure you’re paying the lowest premium possible for coverage is to shop providers.

Oftentimes, drivers will purchase a policy because it seems like a great price. But without requesting quotes from other carriers, it can be difficult to know whether you’re leaving money on the table.

Below are a few ways you can compare liability-only policies to ensure you’re getting the best rate:

• Call local insurance agents
• Request quotes online
• Use a broker service

Explore Discounts

Another way to make your liability-only car insurance premiums more affordable is through discounts. Many insurance carriers offer multiple ways to save, including discounts for:

• Safe driving
• Low-mileage driving
• Defensive driving courses
• Affiliations and groups
• Bundling multiple policies
• Insuring multiple vehicles
• Paying-in-full

Improve Driving Record

While it’s not an immediate way to lower costs, improving your driving record can help decrease premiums for future policy renewals. The longer you avoid accidents and driving violations, the better your average rates will be for liability-only plans.

Increase Deductible

Increasing your deductible can also help lower premium costs, but it comes with a higher level of risk. If you have a high deductible plan, you’ll want to ensure you have the savings set aside to cover costs should you need to file a claim in the future.

Liability-Only Vs Full Coverage Rates

When choosing a car insurance policy, it’s important to consider the level of coverage you need. Liability-only plans tend to be less expensive than full-coverage auto insurance, but they also offer less protection.

These cost-effective plans are cheaper because they only cover damages and injuries to other people and their vehicles. Without full coverage, you’ll be financially responsible for repairing or replacing your car in an at-fault accident.

The table below showcases the trend between liability-only and full-coverage car insurance policies.

What Is Liability-Only?

Liability-only coverage is designed to provide some financial protection if you’re ever in an accident.

Typically, these policies will include property damage liability coverage and bodily injury liability coverage. Depending on where you live, some states will also have personal injury protection as part of the plan.

Is Liability-Only Car Insurance Enough?

Answering whether liability-only car insurance is enough will depend on your unique situation. There are some situations where a liability-only car insurance policy makes sense and others where full-coverage car insurance is better.

For instance, liability-only coverage can be a great option if you have an older vehicle or a car that’s paid for. In these scenarios, a full-coverage policy could cost more than your vehicle’s value, making a less costly coverage more appealing.

Liability-only coverage is also good for drivers who don’t mind the added risk of paying out-of-pocket costs for repairs to their vehicles.

One important thing to remember, though, is that no matter how safe a driver you are, accidents can happen at any time. While liability-only can be an affordable auto insurance option, it does leave you more financially vulnerable should something happen to your vehicle.

What Does Liability-Only Car Insurance Not Cover?

Liability-only insurance is typically a bare-bones policy that provides minimum coverage. While it does offer some financial protection during an accident, it could leave you with out-of-pocket expenses.

Here are a few items that typically aren’t covered under these plans:

• Costs to repair your vehicle after a collision with another car or object
• Damages from non-collision causes, like fires, floods, falling objects, and vandalism
• The remaining balance on your vehicle if the car is totaled in an accident

Why Is Liability-Only So Much Cheaper?

According to a report by Forbes, buying a state minimum car insurance policy costs about 71% less than if you purchase a full-coverage plan. The main reason why drivers save so much on a liability-only policy is due to the level of protection.

With full-coverage policies, there are several layers of protection and less risk, which makes them more expensive. But with liability-only, the driver assumes most of the risk and, in turn, gets a lower premium from the insurance carrier.