The cheapest liability-only car insurance available in August 2024.
Liability car insurance is a fundamental policy that safeguards against harm to another car, driver, or passenger. Nearly all states mandate liability insurance for drivers to operate legally on the road. With rising insurance costs, some individuals opt for only liability coverage, which can be significantly less expensive than comprehensive coverage. Liability insurance may also be a suitable choice for those whose vehicle is valued at less than ten times their annual premium.
We analyzed numerous car insurance companies and picked six that offer exceptional liability insurance at competitive prices, along with excellent customer service, discounts, and flexible credit options. Our methodology explains how we made our selections.
Best for customer service
Erie is the top-rated insurance provider in J.D. Power's 2024 insurance shopping survey, with a high score for claims satisfaction. Additionally, it has fewer complaints than other providers, making it a wise choice for excellent customer service.
Erie's Rate Lock® ensures that your premiums remain the same, even if you file a claim, as long as you maintain the same policy.
Best for families
What are the benefits offered by State Farm for families? State Farm provides a discount of up to 25% for students with good grades and a multi-vehicle discount worth up to 20% if you put two or more cars on one policy.
By combining State Farm auto insurance with a homeowners or renters policy, drivers can potentially save up to $1,200 annually.
Best for discounts
What are the discounts offered by Progressive to lower rates? They include discounts for being a homeowner and for paying the annual premium upfront.
If you have a Progressive auto insurance policy, you can benefit from its accident forgiveness feature. This feature automatically forgives your first claim for less than $500, which can help keep your rates down. Additionally, after five years of safe driving with no at-fault accidents, even larger claims won't increase your rates. If you choose to purchase an optional add-on, you can have one additional accident forgiven per policy period.
Best for a bad driving record
If you have a history of at-fault accidents, speeding tickets, or DUIs, Auto-Owners is a great option. They offer competitive rates for high-risk drivers and provide SR-22 certificates to those classified as such by their state.
Three discounts offered by Auto-Owners are aimed at young drivers, including a good student discount worth up to 20% off if they maintain a B average.
Best for bad credit
For travelers with bad credit, the companies we reviewed had the lowest rates.
By using Travelers' IntelliDrive app to monitor your driving habits, you can potentially save up to 30% on your annual premium.
Best for military members and veterans
Who is this for? USAA offers exceptional coverage for current and former military personnel and their immediate family members in all 50 states.
USAA offers discounts specifically for military families, including reductions in rates while deployed or when storing a vehicle on base.
Find the right car insurance
More on our top liability-only auto insurance companies
Erie
Since 1925, Erie has been insuring Americans and has consistently ranked among the top auto insurance providers in J.D. Power's 2024 study, earning the top spot in two regions every year since 2022.
The states that have availability are Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin, and Washington, D.C.
A.M. Best financial strength rating
A+ (Superior)
NAIC complaint index
0.81, below average
State Farm
The largest auto insurance company in the U.S., State Farm, is available in all states except Massachusetts and Rhode Island. It earns high marks for claims and overall customer satisfaction from JD Power. You can file claims, access ID cards, and get roadside assistance on the State Farm mobile app.
Availability
Nationwide except in Massachusetts and Rhode Island.
A.M. Best financial strength rating
A++ (Superior)
NAIC complaint index
0.78, below average
Progressive
In all 50 states, progressive auto insurance is widely available. Its safe-driving app, Snapshot, can help you save an average of $231 a year on your premium based on your driving habits.
Availability
Nationwide except in Massachusetts and Rhode Island.
A.M. Best financial strength rating
A++ (Superior)
NAIC complaint index
0.78, below average
Auto-Owners
Since 1916, Auto-Owners has been a player in the insurance industry, offering benefits that some competitors lack, such as accident forgiveness and gap insurance. The combination of low rates, excellent customer service, and comprehensive coverage has earned Auto-Owners a spot among the top auto insurance companies.
Availability
26 states
A.M. Best financial strength rating
A++ (Superior)
NAIC complaint index
0.91, close to average
Travelers
Travelers provides various discounts, including those for safe drivers and students, as well as unique benefits such as new car replacement coverage and accident and minor violation forgiveness.
Availability
43 states
A.M. Best financial strength rating
A++ (Superior)
NAIC complaint index
0.70, below average
USAA
USAA consistently receives high customer satisfaction ratings from JD Power and the Better Business Bureau. Since its founding in 1922, USAA provides homeowners, renters, life, and pet insurance to eligible military families.
Availability
Nationwide
A.M. Best financial strength rating
A++ (Superior)
NAIC complaint index
1.35, above average
What Is liability car insurance?
If you're found responsible for an accident, liability car insurance covers damages to another vehicle or person. With the exception of Virginia and New Hampshire, all states mandate motorists to have liability insurance to drive legally.
What liability insurance covers and how much you need
There are two components to liability insurance.
- Medical bills, lost wages, compensation for pain and suffering, and even funeral costs for another person are covered under bodily injury liability. Additionally, it can pay legal fees if you are sued after an accident.
- Liability for property damage: Encompasses the compensation for harm inflicted on another person's vehicle or other assets, such as a mailbox or porch.
In New York, the minimum coverage requirements include $25,000 in bodily injury coverage per person, $50,000 in bodily injury coverage per accident, and $10,000 in property damage coverage.
To cover damages and medical payments, you need collision insurance or MedPay/PIP. Liability insurance won't pay for vehicle repairs or injuries sustained in your car.
Why trust CNBC Select?
Our mission at CNBC Select is to deliver high-quality service journalism and comprehensive consumer advice to help our readers make informed decisions with their money. We base every auto insurance review on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. To research the best insurance companies, we compiled over 100 data points on more than a dozen insurance companies. At CNBC Select, we take pride in our journalistic standards and ethics, and we create all our content without input from our commercial team or any outside third parties. For more information on how we choose the best insurance companies, see our methodology.
Our methodology
CNBC Select evaluated numerous insurance companies with minimum coverage and compared them based on multiple factors to determine the top options.
We analyzed insurance companies based on minimum coverage data from Bankrate, ensuring compliance with each state's requirements for a 40-year-old driver with a clean driving record and good credit driving a 2022 Toyota Camry 12,000 miles annually. We also evaluated each company's coverage options, discounts, availability, ease of use, and customer satisfaction using data from the National Association of Insurance Commissioners, A.M. Best, and J.D. Power's auto insurance survey.
We took into account CNBC Select audience data, including demographics and engagement with our content and tools, when possible.
We ranked our recommendations based on their suitability for various customer needs, including customer service, families, discounts, bad driving records, bad credit, and military members and veterans.
Auto insurance companies may modify their premiums and policy structures based on their own policies.
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