You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the technical advice and tools needed to succeed throughout life ’ s fiscal journey. Bankrate ’ s editorial team writes on behalf of YOU – the proofreader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow stern guidelines to ensure that our column contentedness is not influenced by advertisers. Our column team receives no calculate compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. so, whether you ’ re reading an article or a inspection, you can trust that you ’ re getting credible and reliable information. We value your confidence. Our mission is to provide readers with accurate and unbiased data, and we have column standards in space to ensure that happens. Our editors and reporters thoroughly fact-check editorial capacity to ensure the information you ’ re read is accurate. We maintain a firewall between our advertisers and our editorial team. Our column team does not receive address compensation from our advertisers. Bankrate follows a rigid column policy, so you can trust that we ’ re putting your interests first. Our award-winning editors and reporters create honest and accurate contentedness to help you make the proper fiscal decisions. All providers discussed on our web site are vetted based on the respect they provide. And we constantly review our criteria to ensure we ’ rhenium putting accuracy inaugural. Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — therefore you can feel confident about which supplier is correct for you. Bankrate follows a rigid editorial policy, so you can trust that we ’ re putting your interests inaugural. All of our content is authored by highly qualify professionals and reviewed by subject matter experts, who ensure everything we publish is aim, accurate and worthy of your believe. Founded in 1976, Bankrate has a long track record of helping people make smart fiscal choices. We ’ ve maintained this repute for over four decades by demystifying the fiscal decision-making work and giving people confidence in which actions to take next. While we adhere to strict column integrity, this post may contain references to products from our partners. here ‘s an explanation for how we make money. This message is powered by HomeInsurance.com ( NPN : 8781838 ). For more information, please see our Insurance disclosure. Liability-only car insurance is a type of car policy that only includes coverage for damages and injuries you cause to another party. This type of coverage is sometimes called PLPD, which stands for personal liability and property price — the two types of coverage included on liability-only policies. Liability-only policy can range from state of matter minimum levels to relatively high limits, but never includes coverage for damage to your own vehicle. Understanding the difference between minimum coverage and liability coverage and knowing what you can expect to pay for this character of indemnity could help you make an educated decision about your car insurance policy .
Cheapest liability car insurance
Based on our research, the companies that offer the cheapest minimum coverage nationwide are Auto-Owners and USAA, followed closely by Amica, Erie and Geico. While these average rates are for brassy liability cable car insurance, based on 2021 rates from Quadrant Information Services, keep in mind that minimal coverage requirements and costs will vary based on the country where you live .
| Car insurance company | Average annual minimum coverage premium |
|---|---|
| Auto-Owners | $382 |
| USAA | $384 |
| Amica | $405 |
| Erie | $409 |
| Geico | $433 |
Finding brassy car policy is a priority for many drivers. Getting quotes from several carriers can be helpful, as it allows you to compare the price for the lapp coverage. And although minimum coverage is frequently one of the cheapest liability policy policies available, due to its broken limits, most indemnity experts recommend that you purchase higher liability coverage limits if you can afford to. If you cause an accident and the damages and injuries exceed your liability coverage restrict, you will be creditworthy for paying the overage out of pocket. Depending on the extent of the accident, out-of-pocket costs can end up being thousands of dollars. however, when choosing an policy company, there are other factors to consider in addition to monetary value. You may besides want to review a caller ’ s customer satisfaction scores, coverage options, discounts and digital tools. Everyone has different wants and needs when it comes to policy, so getting quotes from respective carriers might help you find the right policy for you .
What is minimum coverage?
minimum coverage refers to carrying entirely the minimal come of car indemnity coverage required by your state. This needed coverage can vary, but about always includes bodily injury indebtedness coverage and property damage liability coverage, which make up liability-only policy. Your policy will not rightfully be “ liability entirely ” if you have added PIP coverage, but you calm will not have coverage for your own vehicle. Liability-only coverage is only an option if you own your vehicle outright. If you have a lend or lease, your lender probably requires you to have entire coverage. It is besides worth noting that, like “ wax coverage, ” “ liability-only coverage ” is not an industry-standard term. Some companies may consider aesculapian payments or PIP to be a function of a liability-only policy, specially if your express requires them.
Cost of liability-only car insurance
Each country has unique laws and gamble levels that affect the monetary value of indebtedness car indemnity. Because of this, buying only minimal coverage could save you more money in some states than it may in others. For exemplar, the average annual monetary value of cable car policy for minimum coverage in Maine is $ 294, which saves $ 671 compared to the cost of fully coverage. But the annual price of minimum coverage in Louisiana is $ 975, over $ 1,700 cheaper than full coverage in the express. While full coverage indemnity does normally cost more than minimum coverage, it provides a greater level of fiscal protection. Full coverage includes comprehensive examination coverage and collision coverage, which cover damage to your fomite — something that is not included in minimum coverage .
| State | Average annual premium for minimum coverage | Average annual premium for full coverage | Difference |
|---|---|---|---|
| Alabama | $469 | $1,623 | $1,154 |
| Alaska | $373 | $1,559 | $1,186 |
| Arizona | $555 | $1,547 | $992 |
| Arkansas | $470 | $1,914 | $1,444 |
| California | $733 | $2,065 | $1,332 |
| Colorado | $518 | $2,016 | $1,498 |
| Connecticut | $794 | $1,845 | $1,051 |
| Delaware | $787 | $1,775 | $988 |
| Florida | $1,101 | $2,364 | $1,263 |
| Georgia | $756 | $1,982 | $1,226 |
| Hawaii | $345 | $1,127 | $782 |
| Idaho | $307 | $1,045 | $738 |
| Illinois | $442 | $1,485 | $1,043 |
| Indiana | $367 | $1,254 | $887 |
| Iowa | $252 | $1,260 | $1,009 |
| Kansas | $410 | $1,698 | $1,288 |
| Kentucky | $748 | $2,128 | $1,380 |
| Louisiana | $975 | $2,724 | $1,749 |
| Maine | $294 | $965 | $671 |
| Maryland | $767 | $1,877 | $1,110 |
| Massachusetts | $510 | $1,223 | $713 |
| Michigan | $948 | $2,309 | $1,361 |
| Minnesota | $537 | $1,643 | $1,106 |
| Mississippi | $492 | $1,782 | $1,290 |
| Missouri | $468 | $1,661 | $1,193 |
| Montana | $342 | $1,737 | $1,395 |
| Nebraska | $335 | $1,531 | $1,196 |
| Nevada | $860 | $2,245 | $1,385 |
| New Hampshire | $389 | $1,275 | $886 |
| New Jersey | $847 | $1,757 | $910 |
| New Mexico | $385 | $1,419 | $1,034 |
| New York | $1,062 | $2,321 | $1,259 |
| North Carolina | $413 | $1,325 | $912 |
| North Dakota | $285 | $1,264 | $979 |
| Ohio | $328 | $1,034 | $706 |
| Oklahoma | $423 | $1,873 | $1,450 |
| Oregon | $610 | $1,346 | $736 |
| Pennsylvania | $427 | $1,476 | $1,049 |
| Rhode Island | $749 | $2,018 | $1,269 |
| South Carolina | $558 | $1,512 | $954 |
| South Dakota | $275 | $1,642 | $1,367 |
| Tennessee | $371 | $1,338 | $967 |
| Texas | $524 | $1,823 | $1,299 |
| Utah | $528 | $1,306 | $778 |
| Vermont | $292 | $1,207 | $915 |
| Virginia | $441 | $1,304 | $863 |
| Washington | $463 | $1,176 | $713 |
| Washington DC | $704 | $1,855 | $1,151 |
| West Virginia | $458 | $1,499 | $1,041 |
| Wisconsin | $332 | $1,186 | $854 |
| Wyoming | $271 | $1,495 | $1,224 |
How much cheaper is liability vs. full coverage?
The price difference between liability and entire coverage insurance will depend on how a lot liability coverage you buy. Liability car indemnity is not one-size-fits-all. You can purchase unlike levels of coverage that provide you with more or less fiscal protective covering. State minimum policies provide very minimal protection, while a policy with higher limits gives you more. If you cause an accident, a liability-only policy will alone pay up to your policy ’ south limited valuation reserve for the injuries and damages you cause. The higher your limits, the more coverage you have and the more your insurance will likely cost. Keep in judgment that liability car indemnity never covers damage to your car. To cover damages to your cable car, you need broad coverage car insurance, which covers wrong to your vehicle from covered collisions and other events, like weather or hail. The remainder in monetary value is bare when you compare median full coverage rates with average minimum coverage rates. You might pay about $ 975 more for broad coverage than a minimum coverage policy, depending on the indemnity ship’s company you choose. however, a liability-only policy with limits higher than the state minimum will likely cost more than a minimum coverage policy. In that character, the price remainder may not be as meaning. Average annual cost of minimum coverage insurance vs. full coverage
| Car insurance company | Average annual minimum coverage premium | Average annual full coverage premium | Difference |
|---|---|---|---|
| USAA | $384 | $1,225 | $841 |
| Erie | $409 | $1,233 | $824 |
| Geico | $433 | $1,405 | $972 |
| Auto-Owners | $382 | $1,351 | $969 |
| Amica Mutual | $405 | $1,378 | $973 |
If your finish is to purchase cheap liability cable car indemnity, you might be tempted to buy merely your state ’ second minimum limits. While this could help keep your premium down, it could cost you more money in the long run. If you cause an accident and the damages are higher than your indemnity limits, you ’ ll be responsible for the difference out of pocket. Full coverage will typically cost quite a bit more than minimum coverage, but higher limits and adding comprehensive examination coverage and collision coverage could save your finances a lot of stress. If you ’ re involved in a collision with significant damages, not having enough coverage could force you to pay thousands of dollars out of pocket. even if your budget is close, you might want to get an insurance quote for a few different levels of liability coverage. You could be surprised that higher limits don ’ triiodothyronine always cost much more, and you might even be able to afford full coverage .
Things to consider when purchasing liability-only car insurance coverage
Unless you live in New Hampshire or Virginia, where cable car insurance is not required, you will need to purchase at least the minimal car indemnity limits to drive legally in your express. however, you can purchase higher liability limits and still have liability-only car policy. Higher limits can better protect your finances. For example, imagine that you cause an accident in Mississippi, where you carry fair the needed 25/50/25 minimal limits. This means that you have $ 25,000 in bodily injury indebtedness coverage per person, $ 50,000 in bodily injury liability coverage per accident and $ 25,000 in property wrong liability coverage. If you cause $ 100,000 in total injuries, your policy will still entirely pay up to $ 50,000. You will be creditworthy for the other $ 50,000. And if you total the other party ’ mho car to the tune of $ 30,000, you ’ ll have to pay that supernumerary $ 5,000 out of pocket, excessively. If you had higher limits, say 100/300/100, your policy would have covered the entire $ 100,000 wound costs and the full moon $ 30,000 fomite repair costs. Higher limits may cost more, but they could help you maintain fiscal stability if you cause an accident. Liability-only coverage might be a good fit for you if :
- You own your car outright: If you have a loan or lease on your vehicle, you will very likely be required to carry full coverage, so liability-only coverage is probably only an option if you own your car in full.
- Budget is your primary concern: Because full coverage provides greater financial protection in the form of coverage for damage to your car, it is generally more expensive than minimum coverage or liability-only coverage.
- Your vehicle is not worth much: If your vehicle is older and does not have a high value, it may not make financial sense to pay for full coverage.
- You are not concerned about vehicle damage: If you are not worried about damage to your vehicle and do not think you would repair damages, liability-only might be a good choice.
- You have the finances to repair or replace your car: If you own your car outright and have the finances to repair or replace it if it is damaged, without putting a significant strain on your financial health, liability-only coverage could be a viable option.
If you are diffident if liability-only coverage is right for you, working with an agent could be helpful. An agent can listen to your position and help you choose coverage that is appropriate .
Frequently asked questions
What company offers the cheapest liability-only car insurance?
Our research found that Auto-Owners, USAA, Amica, Erie and Geico offer the cheap car insurance for liability-only minimal coverage. If you are looking for higher limits in a liability-only policy, early companies may have cheaper rates. You might want to get quotes from respective car policy companies to compare the price for the same coverage .
Is it enough to carry the minimum liability that my state requires?
To drive legally in any given state, except New Hampshire & Virginia, you only need to purchase the minimum command coverage limits. however, many indemnity experts suggest that you purchase higher liability limits. even a mince accident can cause thousands of dollars in place price and even more in aesculapian expenses. If a lawsuit results from the accident, you may find yourself facing significant fiscal difficulties from senior high school aesculapian bills and other damage expenditures. Talking to a licensed agent about your fiscal situation may help you to determine how a lot coverage to purchase. You ’ ll besides want to remember that if your vehicle is financed, your lender will probable require you to have wide coverage .
Is liability-only coverage cheaper than full coverage?
It depends. If you compare a liability-only policy with state minimum limits against a full moon coverage policy with higher limits, then the liability-only policy is credibly cheaper. however, you can have a full moon coverage policy with low liability limits or a liability-only policy with high limits, and that will affect the price. early factors go into your premium, like your drive commemorate. A state minimum policy could be more expensive for a driver with numerous accidents and tickets than a full moon coverage policy is for a driver with a clean and jerk record. Car indemnity policies come with numerous options to be personalized, which affects price. The best way to figure out how much you ’ ll yield for coverage is to get quotes .
How does auto liability work?
You may want to look into how car indebtedness works while you ’ re in the process of choosing your indemnity coverage types. Auto liability policy pays for damages and injuries that the other party incurs during a car accident. Choosing the right amount of liability coverage is significant because the costs associated with car accidents can add up between medical costs and repair bills. To choose the right amount of liability insurance, you may want to speak to a local insurance agentive role who can help you decide how much coverage is good for you.
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a cleaning drive record, adept recognition and the be full coverage limits :
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state ’ south requirements. Our sample drivers own a 2019 Toyota Camry, permute five days a workweek and drive 12,000 miles per annum. These are sample rates and should be used for relative purposes entirely. Your quotes may be different .