With a few simple tips, you can compare policies and find an affordable way to cover yourself against potential accidents on the road.
Cheap liability insurance is a great option for drivers with a paid-off vehicle who are able to cover their medical expenses. Liability insurance only covers the costs of injuries and damages for the other vehicle should you be at fault in an accident, and is usually the cheapest level of car insurance.
However, it is important to consider that liability-only coverage may not provide enough protection if you are ever involved in an accident.
What is the cheapest liability car insurance?
Getting a liability-only car insurance policy typically costs $51 per month ($617 a year). The most economical provider is Auto-Owners, with average rates of $27/month ($327/year).
Other competitive options include MAPFRE, Erie and USAA. However, these companies are not accessible to everyone. The widely available option for most people is GEICO.
It offers the cheapest rate of any nationally offered company, with an average monthly cost of $34 ($402 yearly).
This means it is $215 cheaper than the typical price and only $35 higher than the lowest cost provider.
Which Companies Have Cheap Liability Car Insurance?
An online comparison tool is one of the easiest ways to find inexpensive liability car insurance. With a few clicks, you can look at multiple policies and get an instant quote.
Make sure to compare prices from different insurers and read through plan details to make sure you’re getting the coverage you need at the best price possible.
Cheapest liability-only insurance from a smaller company: Auto-Owners
Auto-Owners is the most affordable provider of liability-only car insurance. The average cost of a policy is $27 per month ($327 per year), which is $290 less than the national average.
It should be noted that Auto-Owners does not service all states; it currently offers coverage in 26 states, excluding California, New York and Texas.
Cheapest liability-only insurance for people in the military: USAA
USAA offers the lowest rates for liability-only car insurance to active and retired military members and their families.
We found that the average cost for a liability-only policy from USAA is $31 per month ($369 per year), making it $248 cheaper than the national average each year.
Additionally, USAA customers may benefit from discounts and great customer service, according to J.D. Power's Auto Claims Satisfaction Survey, which consistently ranks their claims process near or at the top.
Cheapest liability-only car insurance after an accident: State Farm
State Farm has the most inexpensive liability-only car insurance for people with an existing accident on their record. On average, we found that their monthly rate is $49 ($585 annually) after an at-fault accident.
This is still considerably lower than the average cost of other companies at $331 less per year. Though there are several companies with slightly cheaper rates, none have State Farm's availability.
Increase Your Deductible.
Increasing your deductible is a great way to lower your monthly premium. When you have a higher deductible, the insurer will pay less if you submit a claim, so they’ll charge you less for coverage.
Check with your insurer and compare quotes from competitors to see which deductible amount and policy will be best for your budget.
How to get cheaper liability-only insurance
To get the cheapest liability-only car insurance, compare quotes from multiple companies. This is the best way to shop for the lowest price on liability insurance.
Comparing quotes can show you quickly which company offers the most affordable rates.
Signing up for usage-based insurance: When you sign up for usage-based insurance, your insurance company monitors your driving for a few weeks and awards lower rates for safe driving.
Enrolling in a defensive driving course: You could get cheaper liability-only insurance by taking a defensive driving course (or a driver’s education course if you’re a young driver).
Switching companies if your rates go up: When your policy is up for renewal, it’s a good idea to compare rates again and switch if there’s a company that offers cheaper liability-only car insurance.
Getting a broad form policy: A broad form policy is cheaper than even a minimum liability policy, but only one driver is allowed to use the insured vehicle and you can’t add comprehensive or collision coverage.
Beware of Discounts That Don't Really Exist.
When you are shopping for car insurance, pay attention to advertisements that promise huge discounts or low premiums. Always check if these deals are real before signing up - sometimes they hide hidden costs or fine print that you don’t want to be stuck with.
Read the insurers’ terms and conditions carefully before deciding on a policy so you know exactly what you are getting.
Check Your Insurance Policy Every Year.
When it comes to finding the cheapest liability car insurance, don’t forget to check your existing policy every year. If you no longer need certain coverage, you may be able to get a cheaper policy.
Additionally, checking your policy could help you save money when comparing prices. Look out for discounts such as loyalty rewards or safe driver discounts and make sure that your insurer is aware of any changes in circumstances that may have occurred over the year.
Ask About Low-Mileage and Defensive Driving Discounts.
Low-mileage discounts are typically offered for those that drive less than 7,500 miles a year and defensive driving discounts can lower rates for those who complete driver safety courses.
With defensive driving you can get discounted affects on rates up to 10%, so it’s always worth asking about discounts before selecting your insurance provider.