The Cheapest Liability Car Insurance (2024)

To get the cheapest liability auto insurance in your state, you’ll have to know where to look and how to maximize your savings. Keep reading to learn more about liability insurance and how to find cheap liability car insurance in your state.

If you’re searching for dirt-cheap car insurance, liability coverage will likely check that box, depending on where you live. Liability coverage is a type of car insurance that covers the other party’s injuries (bodily injury liability) or damages to their vehicle (property damage liability) in an accident where you, the policyholder, are deemed at fault.

In most states, except for Virginia and New Hampshire, having a minimum amount of liability coverage is required by law.

While auto insurance has become more affordable over time, according to data collected by the Insurance Research Council (IRC) comparing household incomes over the past three decades to expenditure on auto insurance, saving money by binding an affordable liability insurance policy could bring you closer to that family trip you’ve been planning for years or any other financial goals you have.

While savings on auto insurance are all fine and dandy, there are a few things you should know about binding the cheapest legal car insurance policy in your state. For starters, you aren’t nearly as protected behind the wheel with a liability-only policy as you might be with a full-coverage policy.

While some states only require drivers to maintain a minimum amount of liability coverage to maintain the requirements for a legal, minimum coverage policy, others may require drivers to carry minimal limits of other coverage types. Some states require minimum amounts of coverage types such as uninsured or underinsured motorist coverage (UM/UIM), medical payments coverage (MedPay), and even personal injury protection (PIP).

While the term “liability-only car insurance” may accurately describe the minimum requirements in some states, it may also be used as a catch-all phrase for the cheapest policy with the minimum legal coverage amounts in states that require coverages other than just liability. 

Liability insurance prices vary by state, insurer, and driver, but the national average rate for a liability-only or minimum coverage policy is about $658 annually. While some drivers will pay less than the average rate, especially those in states with minimal auto insurance laws or none at all, other drivers may pay more.

Auto insurance is highly subjective and varies based on some characteristics of your state and your individual traits. If you’re having trouble finding cheap insurance for a liability-only policy, there may be a couple of reasons why. 

Car insurance providers consider several things before determining your premiums, including your gender, age, the type of car you drive, where you live, your driving record, insurance history, and more. Similarly, a state’s population, population density, and number of uninsured drivers can also play a part in the cost of liability insurance. 

While a minimum coverage or liability-only policy may have cheap premiums, you must also consider the potential costs you may incur following an accident. Since liability coverage only covers the costs a victim incurs in an accident caused by a policyholder, if you have the cheapest liability-only insurance and are the victim of an accident, you likely won’t have much, if any, coverage to lean on.

Premiums for full coverage policies are generally about double the amount of a state’s rate for minimum coverage, but drivers who carry full coverage have far more protection for the costs they may incur after an accident, whether at fault or not. Accidents happen, but being prepared for the worst with a full coverage policy rather than a minimum coverage one can save you a hefty chunk of change. 

The average cost of liability-only car insurance varies by state, but nationally, costs about $658 annually or $55 monthly. Liability insurance prices vary depending on a few different statistics about drivers in each state and each state’s minimum required coverage amounts. 

Let’s take a look at the annual average cost of liability-only car insurance by state.

Many drivers may pay below-average rates for minimum coverage, especially those in Wyoming, where the average premium is about $310 annually or about 53% below average. However, drivers in states like New York, Florida, and Michigan may struggle when searching for cheap liability auto insurance, where the average premiums cost as much as $1,394, exceeding the national average by a whopping 112% annually. 

Check out this compilation of minimum car insurance requirements by state at the Insurance Information Institute (III) to discover the liability limits and other coverages required in your state to help give you more context for the average annual liability-only premium where you live.

The company with the cheapest liability-only insurance varies based on each driver, as insurance is highly subjective based on your characteristics and needs. That said, some insurers have a reputation for offering below-average premiums. 

Generally, drivers with clean driving records who have had a few years of experience under their belts are the most likely to be eligible for a company’s lowest rates. Let’s take a look at the companies with the best cheap liability insurance.

While drivers are most likely to find cheap liability car insurance from USAA, this insurer only offers policies to active or retired military members and families. However, Geico, State Farm, and Travelers offer the best rates for all types of drivers, with averages for liability-only policies falling as far as $123 below the national average of $658 annually. For example, Geico has the cheapest liability insurance monthly cost of only $45, an unbeatable price when it comes to car insurance coverage.

Drivers must keep in mind, though, that an insurer’s average premium on a minimum coverage policy may not accurately reflect average rates in a given state, as prices can vary based on a state’s minimum coverage laws. Similarly, liability auto insurance rates will vary from driver to driver, so these rates may not accurately reflect your quotes, especially if you’re a high-risk driver, have ever held an SR-22 or an equivalent document, or live in a state with above-average premiums. 

While searching for auto insurance, you may find that your quoted cost of liability insurance is much higher than the national average or your insurer’s average rate. Auto insurance is highly subjective and varies based on the driver, state, and insurer, so there may be some factors at play behind the scenes that are raising your rates. Let’s take a look at some of the factors that affect your ability to find cheap liability auto insurance.

First of all, some states have higher average rates for auto insurance than others, based on things like population, population density, and the number of uninsured drivers on the road. If your state skews above average in any of those categories, you may see above-average auto insurance rates.

These factors affect the cost of auto insurance because they dictate how many drivers file claims. If a state has a high population, a dense population, or a few densely populated cities, drivers are more likely to get into accidents and, thus, file claims. As more claims are filed, premiums become more expensive.

Similarly, the population of uninsured drivers often impacts a state’s average premium. On average, about 14% of drivers on the road are uninsured. So, if your state’s number of uninsured drivers is above the national average, you may see higher premiums. 

Along the same lines, drivers in states with robust auto insurance laws may also pay above-average premiums on minimum coverage policies since their policies have more coverage than the standard, liability-only policy. For example, drivers in Florida pay about $1,244 annually for a minimum coverage policy, which may seem high, but considering the state is a no-fault state and requires all drivers to carry minimum limits of PIP and UM/UIM in addition to liability coverage, the above-average premiums start to make sense. 

On an individual level, your own characteristics will directly impact the cost of your premiums. Insurers consider several factors about each policyholder when determining their premiums to get an idea of their risk of filing a claim. Insurers may use your age, gender, insurance history, driving record, and other factors to get an idea of how likely you are to file a claim.

For example, if you are a young driver living in Michigan, you will likely pay more for the same liability-only coverage than a middle-aged driver living in Massachusetts simply because certain ages and places are riskier to insure than others. 

According to data collected by the National Highway Traffic Safety Administration (NHTSA), young drivers are over-involved in auto accidents. Thus, they often pay above-average premiums no matter where they live. In contrast, middle-aged drivers are the least likely age group to get into car accidents, so they will often see premiums at or below the average rate. 

While you may have some factors working against you, raising your rates, there may still be a way you can get cheap liability car insurance, no matter who you are or where you live.

If you’re looking for low-cost liability auto insurance or the equivalent minimum coverage policy in your state, but your rates are still a bit above average, you aren’t completely out of luck when it comes to savings. One of the best ways to ensure you’re getting the cheapest liability auto insurance available in your state is to look into the discounts your insurer offers.

Insurers offer a range of discounts to help policyholders lower their premiums, regardless of their coverage types or annual premiums. Generally, insurers offer discounts based on your individual characteristics, decision-making behind the wheel, and consumer habits. While the specifics range based on your insurer, many companies offer some combination of discounts that fall into those categories.

For example, many insurers offer a good student discount, a good driver discount, and a bundling discount. Similarly, others may offer an occupational discount for military veterans or teachers, a telematics program for those willing to track and share their driving data with their insurer, and a multi-car discount. 

Typically, insurers will allow you to stack the discounts for which you’re eligible so you can make the most of your savings. On average, drivers can score about 20% off their premiums by stacking discounts. 

One of the most efficient ways to get cheap liability insurance online is to gather and compare quotes from several insurers to see the rates and discounts for which you qualify. Getting and comparing quotes is an effective way to find a policy that meets your needs and can be done simply by clicking a few buttons.

In fact, we have a free quoting tool right here at Clovered, which you can use to get your unique quotes in minutes after inputting a few quick details about your car and driving history. If you’d rather chat with a professional about your quotes, you can contact one of our licensed agents at 833-255-4117 or [email protected] for assistance.