The Cheapest Liability Car Insurance (2025)

Liability coverage is a type of car insurance policy that covers the other party’s injuries or damages to their vehicle in an accident where you, the policyholder, are deemed at fault. In most states, having some form of liability coverage is required by law.

Keep reading to learn the answers to your questions, like how much liability-only car insurance is, what it covers, and how you can get the cheapest liability-only auto insurance.

The cheapest liability-only car insurance will be a policy that only meets the minimum amount of coverage legally required in your state. This policy may only contain liability coverage or it may contain liability coverage and minimal limits of other coverages like uninsured motorist coverage (UM) or personal injury protection (PIP).

If you’re required to have coverages other than liability coverage, your liability car insurance rates may be a bit higher than those only required to maintain liability coverage. 

There are several ways you may be able to ensure you get the most inexpensive liability car insurance, but first, let’s break down exactly what this coverage entails so you can decide if it’s right for you. 

Auto insurance with liability coverage only is a bare-bones policy that doesn’t cover everyone involved in an accident. Thus, it’s significantly cheaper than coverage options where everyone is covered. However, there are additional coverages you can or may be required to add to your liability-only policy, which may raise the price.

The liability car insurance price is typically lower because it does not cover all that much in the event of an accident. Essentially, liability coverage covers the other drivers who are on the road while you are driving. 

So, if you cause an accident, your car insurance with only liability will likely cover any damages to another driver’s vehicle or any medical expenses they may face, up to your policy’s maximum. These two facets of liability coverage are called property damage liability and bodily injury liability.

Property damage liability (PDL) is a facet of your liability insurance coverage. Property damage-only liability car insurance covers the repair costs for damages you cause to another person’s property in an accident deemed your fault. This includes their car, house, and other things that may be considered someone’s property.

The minimum amount of property damage liability coverage you can have on your policy is dictated by your state’s laws. On average, Americans have at least $18,000 of property damage liability coverage on their policy. This means your insurer will pay up to $18,000 for repairs on the other party’s property after you meet your deductible. Any repairs beyond that amount will come out of your pocket.

Bodily injury liability (BDL) is another facet of insurance for liability only. This facet of your liability insurance coverage will cover the medical expenses the other party faces in an accident where you, the policyholder, are deemed at fault. Bodily injury liability is split into two types: per person and per accident. 

The average liability car insurance cost is about $658 annually or $55 per month. This price only reflects the cost of the legal minimum amount of required coverage in each state, though there may be ways for you to get the cheapest state minimum auto insurance. Since your own expenses aren’t covered by liability coverage, the cost of your premiums will tend to be much less than the cost of full coverage premiums, for which the average American pays about $2,089 annually.

If the cheapest car insurance for liability only is above the average cost in your state, there may be a couple of reasons why. Let’s see how insurers may be determining your rates. 

Liability auto insurance rates are determined by a variety of factors. Car insurance providers consider several things before determining your premiums, all of which may impact the way you drive, how likely you are to get into an accident, and if you’re likely to pay what you owe during the claims process. 

Things like your gender, age, the type of car you drive, where you live, your driving record, and other factors may affect your ability to get cheap liability-only auto insurance. For example, boys below a certain age tend to pay more in premiums than girls of the same age, because boys are historically statistically more likely than girls to get into accidents until they reach middle adulthood. 

Similarly, residents of specific cities or states may have trouble finding liability insurance coverage for cheap because of where they live. In certain cities, like New York City and Chicago, the cheapest auto insurance for liability-only can be difficult to find because drivers in these cities are more likely to get into accidents, given the cities’ high populations. 

The same is true for certain states, like Michigan and Georgia, which have some of the highest rates of uninsured drivers in the country. In states where the rate of uninsured drivers is high, cheap liability-only car insurance tends to be above the average rate due to drivers’ risk of bearing the financial burden following an accident with an uninsured driver. 

While low-cost liability car insurance may be the best option for your budget, it may not be the best choice for your safety. Before you opt for this minimal auto insurance coverage, you should know how you’re covered. 

In many states, cheap liability insurance for cars refers to both PDL and BDL coverages. While there are two components of liability coverage, it will likely appear on your policy as three numbers, separated by slashes, like 50/100/300. 

The first two numbers refer to BDL coverage, and the last number refers to PDL coverage. BDL is separated further into two parts, per person and per accident. Thus, your cheapest liability insurance coverage will likely have limits for bodily injury per person, bodily injury per accident, and property damage per accident.

Depending on your policy, the amount of BDL coverage per accident will be double or triple the amount of coverage per person. On average, cheap liability auto insurance coverage will likely contain $25,000 BDL per person and $50,000 BDL per accident. 

This means once you pay your deductible, your insurance will cover up to your policy limit in medical fees the other party may face in an accident. This can include hospital visits, surgery, loss of income, funeral fees, etc.

The average amount of PDL on the cheapest minimum coverage auto insurance is about $25,000. This means once you pay your deductible, your insurer will help you cover the other party’s property damage costs up to $25,000. This can be used for car repairs or to repair damaged property, like mailboxes or fences. 

While you technically only need the minimum amount of car insurance coverage mandated by your state’s laws, it is a good idea to spend the extra money to get more coverage.

For some, cheap liability insurance only provides the protection they need with nothing extra. For these drivers, the best policy will have the least amount of coverage permitted in their state. For those wanting more coverage, the best liability-only policy may have higher limits than the minimum limits set by state law. 

There isn’t one “best” policy when it comes to car insurance. For many drivers, car insurance that’s cheap, like liability policies, don’t provide enough protection for them, even if they are less expensive. Selecting the best policy is a matter of what’s best for your individual needs.

Finding affordable liability car insurance can be tough, especially if you live in a state with above-average auto insurance rates. However, one tried and true method can help you lower your premiums — discounts. 

Using a discount on liability insurance can help you lower your premiums even further. Insurers offer many different auto insurance discounts, some of which require participation for more savings, and others only require you to meet a set of criteria.

For example, many insurers offer pay-per-mile discount programs, in which drivers who drive fewer miles than the national average can pay for insurance as they go, instead of paying premiums based on the average number of miles drivers cover in a year. If you rarely get behind the wheel, this discount may be a great way for you to save. 

Another discount that can help you reduce the cost of liability-only car insurance is a multi-car discount. If you have several drivers in your household, consider adding everyone to the same insurance policy to bolster your savings. 

The top insurance companies with liability car insurance for cheap are Geico, Progressive, and State Farm. These providers also offer discounts that you can add to your policy to decrease your premiums, such as a good student discount, a good driver discount, and a bundling discount. 

If you’re on the hunt for the lowest liability coverage, going with a reputable insurer can help assuage any fears you may have about having minimal coverage. Selecting one of the top insurers for cheap limited liability insurance is one of the best ways to ensure you get the coverage you want that won’t break the bank. 

To get the best deals on cheap liability car insurance online, we recommend shopping around to find a new policy by getting a quote through our online quoting tool. Our quoting tool can help you find the policy you need at the price you want.

If you would rather get car insurance quotes for liability-only policies by speaking with a professional, you can contact one of our agents directly at 833-255-4117 or agent@clovered.com.