How to Compare Car Insurance Rates 2024
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Cheapest Liability Car Insurance (2024)

Updated on:
Content was accurate at the time of publication.

State Farm has the cheapest liability-only car insurance rates among major companies at an average rate of $597 a year.

You may find an even better rate from a smaller company, depending on where you live.

Find the Cheapest Car Insurance Quotes in Your Area

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Among national car insurance companies, State Farm, Geico and American Family offer the cheapest liability rates for most drivers.

Raising your deductible, comparing quotes and keeping a good driving record can drive your rate down.

Liability-only coverage rates can range from $351 a year in South Dakota to $1,849 in Michigan.

Hanover and MMG offer the cheapest average car insurance rates at $336 and $375 a year respectively. However, these companies are not available nationally. Among major companies, State Farm has the cheapest liability-only rates. Its rates average $597 a year, or $50 a month.

CompanyAnnual rate
Hanover$336
MMG$375
USAA*$412
Grinnell Mutual$421
Co-Op$437
Westfield$439
Acuity$478
Concord$478
Erie$497
Mercury$511
Auto-Owners$516
Farm Bureau$548
Grange$570
State Farm$597
Country Financial$623
Arbella$720
Geico$727
American Family$728
Shelter$762
Progressive$791
Travelers$835
Plymouth Rock$853
Nationwide$963
The Hartford$1,007
Amica$1,098
Allstate$1,158
Farmers$1,188
Safeway$1,391
AAA$1,520
UAIC$1,577
NJM$3,125

*USAA is only available to current and former military members and their families.

Although Hanover and MMG offer the cheapest car insurance rates nationally, you may find cheaper rates with other insurance companies depending on where you live.

State Farm has the cheapest liability car insurance in 18 states, while Geico is the cheapest in seven states, plus Washington, D.C.

StateCheapest companyAnnual rate
AlabamaState Farm$313
AlaskaState Farm$551
ArizonaState Farm$660
ArkansasState Farm$377
CaliforniaGeico$425
ColoradoState Farm$519
ConnecticutState Farm$713
DelawareTravelers$858
FloridaGeico$469
GeorgiaAuto-Owners$500
HawaiiGeico$364
IdahoState Farm$227
IllinoisState Farm$521
IndianaAuto-Owners$339
IowaState Farm$237
KansasFarm Bureau$427
KentuckyTravelers$800
LouisianaFarm Bureau$666
MaineState Farm$363
MarylandGeico$803
MassachusettsHanover$484
MichiganAuto-Owners$1,134
MinnesotaState Farm$484
MississippiState Farm$344
MissouriProgressive$474
MontanaGeico$432
NebraskaFarmers$302
NevadaState Farm$753
New HampshireHanover$187
New JerseyGeico$583
New MexicoState Farm$393
New YorkProgressive$627
North CarolinaErie$317
North DakotaAmerican Family$292
OhioState Farm$309
OklahomaProgressive$343
OregonState Farm$651
PennsylvaniaErie$338
Rhode IslandTravelers$729
South CarolinaAuto-Owners$512
South DakotaAuto-Owners$234
TennesseeFarm Bureau$394
TexasTexas Farm Bureau$401
UtahAuto-Owners$615
VermontState Farm$229
VirginiaErie$450
WashingtonState Farm$401
Washington DCGeico$657
West VirginiaErie$399
WisconsinErie$293
WyomingGeico$212

The average cost of liability car insurance is $776 a year, or $65 a month. Average rates range from $351 a year in South Dakota to $1,849 in Michigan.

Car insurance rates can vary by state due to factors like different state coverage requirements, accident rates and crime rates.

StateAnnual rate
Alabama$717
Alaska$663
Arizona$1,079
Arkansas$622
California$571
Colorado$897
Connecticut$1,088
Delaware$1,283
Florida$1,206
Georgia$790
Hawaii$609
Idaho$413
Illinois$848
Indiana$533
Iowa$444
Kansas$616
Kentucky$1,183
Louisiana$948
Maine$501
Maryland$1,093
Massachusetts$757
Michigan$1,849
Minnesota$743
Mississippi$662
Missouri$686
Montana$574
Nebraska$470
Nevada$1,368
New Hampshire$537
New Jersey$1,393
New Mexico$632
New York$1,059
North Carolina$532
North Dakota$522
Ohio$532
Oklahoma$656
Oregon$1,092
Pennsylvania$603
Rhode Island$1,213
South Carolina$803
South Dakota$351
Tennessee$505
Texas$696
Utah$989
Vermont$417
Virginia$715
Washington$651
Washington, D.C.$949
West Virginia$659
Wisconsin$503
Wyoming$370

In no-fault insurance states like Florida, New Jersey and New York, liability policies also include personal injury protection (PIP). Liability policies include uninsured motorist coverage in states that require this coverage.

Find the Cheapest Car Insurance Quotes in Your Area

Liability vs. full-coverage car insurance costs

Liability car insurance costs 61% less than full-coverage car insurance, on average. Full coverage includes higher liability limits as well as collision and comprehensive coverage, which protects your own vehicle.

CompanyLiability coverageFull coverageCost differenceTest 1Test 2test scrolltest scrolltest scrolltest scrolltest scrolltest scrolltest scrolltest scroll 10test scroll 11test scroll 12
Hanover$336$1,372$1,0364537857
MMG$375$902$5274534574857!
USAA$412$1,203$79145347537%
Grinnell Mutual$421$2,015$1,59445427514%
Co-Op$437$1,635$1,19845344583+
Westfield$439$1,481$1,0424217537=
Acuity$478$1,361$88312.44582-
Concord$478$977$49912.17537
Erie$497$1,270$773212455268
Mercury$511$1,596$1,08575375547
Auto-Owners$516$1,690$1,17475375968
Farm Bureau$548$1,931$1,383453787867
Grange$570$1,638$1,06875371375
Safety$571$1,392$82178371758371
State Farm$597$1,487$890758371787
Country Financial$623$1,600$9777537178367
Arbella$720$1,629$90975371547
Geico$727$1,937$1,21075375684216
American Family$728$1,920$1,19245674587
Shelter$762$1,927$1,1654578584587
Progressive$791$2,032$1,24175374695
Travelers$835$1,919$1,08475374876
Plymouth Rock$853$2,236$1,38378534545
Nationwide$963$2,226$1,26345674577
The Hartford$1,007$2,688$1,68145374359
Amica$1,098$2,548$1,45043773458
Allstate$1,158$2,609$1,45178574574
Farmers$1,188$3,091$1,903787545872
Safeway$1,391$3,080$1,689453242786
AAA$1,520$3,835$2,3157874537
UAIC$1,577$2,886$1,30983334537
NJM$3,125$3,382$25736654887

Liability-only car insurance is auto coverage that pays for injuries and property damage you cause to others in a car accident. Liability coverage is broken down into two parts:

  • Bodily injury liability coverage: Bodily injury coverage helps pay for medical costs of someone injured in an accident you caused.
  • Property damage liability coverage: Property damage coverage helps pay for another vehicle or any property you damaged in an accident.

If you need to dispute a liability claim against you, your car insurance company also covers the costs of your legal defense.

Almost every state requires you to have liability coverage. Several states require other coverages, too.

What does liability car insurance not cover?

Liability car insurance doesn’t cover your own injuries or damage to your own vehicle. To cover these costs, you can add these coverages to your car insurance policy:

  • Collision coverage: Collision covers damage your vehicle sustains in a collision with another vehicle or object, or if it overturns.
  • Comprehensive coverage: Comprehensive covers your vehicle for theft or damage from non-collision causes, like fires, floods, falling objects and vandalism.

You may also need to buy these types of car insurance coverage in some states:

  • PIP and medical payments (MedPay): These coverages protect you if you and your passengers are injured in a car accident, regardless of fault. PIP is required in about a dozen states. PIP and/or MedPay are optional in most other states.
  • Uninsured motorist protection: This covers injuries you and your passengers suffer in an accident caused by a driver without insurance. About 20 states require this coverage, and it’s optional in most others.

The amount of liability car insurance you need to drive legally varies by state. However, the minimum liability limits your state requires may not provide enough financial protection, regardless of where you live.

If the amounts needed to cover an accident victim’s injuries or car repairs are higher than your policy’s liability limits, you may need to pay the difference. This could put your savings or other assets at risk.

Choosing liability limits that match your net worth protects your assets if you cause severe injuries or damage in an accident.

If you have a high net worth and/or a high salary, consider buying an umbrella policy for more protection.

There are several ways to lower your liability car insurance rate:

  • Compare quotes from multiple companies: Since insurance company rates vary by customer, it’s important to compare quotes from multiple companies to find the cheapest liability car insurance for you.
  • Take advantage of discounts: Insurance companies offer a variety of discounts, including multi-policy discounts, claims-free discounts and good student discounts.
  • Keep a good driving record: If you have any violations on your driving record, your car insurance rate can go up. Some insurance companies also offer a safe driving program that customizes your rates based on your driving habits.

LendingTree obtains rates from insurance company filings reported to Quadrant Information Services. Rates shown in this article are based on an analysis of thousands of car insurance quotes for sample drivers in every state. Your rates may vary.

Unless stated otherwise, our sample driver is a 30-year-old man with good credit and no tickets, accidents or DUIs driving a 2015 Honda Civic EX.

Minimum-liability policies provide liability coverage with the state’s required minimum limits.
Full-coverage policies include the following limits and deductibles:

  • Bodily injury liability: $50,000 per person, $100,000 per accident
  • Property damage liability: $25,000
  • Collision: $500 deductible
  • Comprehensive: $500 deductible