Last Updates: 27-August-2026
Car insurance can be expensive, especially when you pay for coverage you may not need. For drivers focused on affordability, liability only car insurance can be a practical option when it meets their state’s insurance requirements. If you cause an accident, liability only coverage can help pay for injuries to other people and property damage, including covered medical bills.
However, it generally does not pay for damage to your own vehicle or your own medical expenses and rules can differ for immediate family members depending on the policy.The amount you pay can vary because insurers set different prices for liability insurance. Your insurance rates may depend on factors such as your location, driving history, age and other personal details.
When shopping for coverage, it is worth taking time to compare insurance rates from more than one insurance provider rather than choosing the first quote. Comparing the price and coverage costs can help you find protection that fits your budget without paying for unnecessary coverage.
Key Takeaways
- Liability only car insurance can be a lower cost option for drivers who only need basic protection.
- It generally covers injuries and property damage you cause to other people in an accident.
- It usually does not cover damage to your own vehicle after an accident you cause.
- Your insurance rates can vary based on your driving history, age, location, credit history and insurance provider.
- Comparing quotes from different insurers can help you find affordable coverage that fits your needs.
- Before choosing liability only coverage, check your state requirements and consider whether you could afford to pay for your own vehicle repairs.
About Insurenestly
Insurenestly is an insurance information website focused on helping readers understand car insurance in simple, practical language. Our content covers insurance costs, coverage options, policy requirements and factors that can affect rates. We aim to provide clear, research based information so readers can compare their options and make more informed insurance decisions.
What Can Liability Only Car Insurance Cover?
Liability car insurance is mainly about financial responsibility when you are legally responsible for an accident. In almost every state, drivers need liability coverage as proof that they can handle the costs they cause. If there is an accident you caused, bodily injury liability can help pay for medical bills and lost wages for injured drivers, passengers and nearby pedestrians. It can also help with property damage liability when you repair or replace someone else’s property, such as another car, a mailbox, guard rail, fences, buildings, vehicles, or government owned property.
From my experience reviewing car insurance policies, understanding these two parts is important because even a small wreck can create serious expenses for others.With liability only auto insurance, your policy generally does not pay your own medical bills or your own vehicle’s repair costs after an accident you caused. You may have to pay out of pocket for those costs, while your insurer handles covered claims for others up to your policy limits.
That is why responsibility matters: having enough cash to handle your own losses can make a difference, but tens of thousands of dollars in unexpected costs can make worst case scenarios difficult to manage. Immediate household family members may also have coverage depending on the policy, but the exact rules vary by insurer and state.
Average Yearly Cost of Minimum Car Insurance in the U.S.
| Insurance Company | Median Annual Rate | Approx. Monthly Cost |
|---|---|---|
| USAA* | $352 | $29 |
| GEICO | $488 | $41 |
| Travelers | $537 | $45 |
| State Farm | $551 | $46 |
| Progressive | $608 | $51 |
| Allstate | $803 | $67 |
| American Family | $862 | $72 |
| Nationwide | $950 | $79 |
| Farmers | $1,266 | $106 |
Cheapest Minimum Coverage by State
| State | Lowest Cost Insurer | Median Annual Rate | Approx. Monthly Rate |
|---|---|---|---|
| Alabama | Cincinnati Insurance | $354 | $30 |
| Alaska | GEICO | $265 | $22 |
| Arizona | Travelers | $534 | $45 |
| Arkansas | GEICO | $356 | $30 |
| California | GEICO | $286 | $24 |
| Colorado | American National | $207 | $17 |
| Connecticut | Travelers | $458 | $38 |
| Delaware | Donegal | $272 | $23 |
| Florida | GEICO | $365 | $30 |
| Georgia | Donegal | $428 | $36 |
| Hawaii | GEICO | $317 | $26 |
| Idaho | American National | $210 | $18 |
| Illinois | Westfield | $376 | $31 |
| Indiana | Buckeye | $335 | $28 |
| Iowa | Progressive | $176 | $15 |
| Kansas | GEICO | $401 | $33 |
| Kentucky | State Farm | $476 | $40 |
| Louisiana | Louisiana Farm Bureau | $619 | $52 |
| Maine | Progressive | $311 | $26 |
| Maryland | Donegal | $431 | $36 |
| Massachusetts | The Hanover | $349 | $29 |
| Michigan | Wolverine Mutual | $319 | $27 |
| Minnesota | Westfield | $335 | $28 |
| Mississippi | Direct Auto | $396 | $33 |
| Missouri | Missouri Farm Bureau | $411 | $34 |
| Montana | State Farm | $239 | $20 |
| Nebraska | American National | $184 | $15 |
| Nevada | CIG | $508 | $42 |
| New Hampshire | The Hanover | $243 | $20 |
| New Jersey | GEICO | $674 | $56 |
| New Mexico | Central Insurance | $200 | $17 |
| New York | NYCM | $417 | $35 |
| North Carolina | Progressive | $530 | $44 |
| North Dakota | North Star | $288 | $24 |
| Ohio | Central Insurance | $206 | $17 |
| Oklahoma | American Farmers & Ranchers | $270 | $23 |
| Oregon | California Casualty | $451 | $38 |
| Pennsylvania | Westfield | $285 | $24 |
| Rhode Island | Travelers | $569 | $47 |
| South Carolina | American National | $360 | $30 |
| South Dakota | Farmers Mutual of Nebraska | $202 | $17 |
| Tennessee | Donegal | $189 | $16 |
| Texas | State Farm | $516 | $43 |
| Utah | GEICO | $609 | $51 |
| Vermont | Union Mutual | $187 | $16 |
| Virginia | Virginia Farm Bureau | $397 | $33 |
| Washington | CIG | $314 | $26 |
| Washington, D.C. | Chubb | $319 | $27 |
| West Virginia | Westfield | $414 | $35 |
| Wisconsin | GEICO | $280 | $23 |
| Wyoming | American National | $132 | $11 |
What Is the Cost of Liability Only Car Insurance?
In most states, residents who drive must carry liability only car insurance or at least the amount required by their state. The price depends on the coverage types included in your policy and the limits you choose. Based on NerdWallet’s August 2026 rate analysis, the average car insurance cost for minimum required coverage is about $646 per year for a good driver with good credit.
The average rises to $944 for a driver with an at fault accident, $1,020 with poor credit and $1,248 after a recent DUI. These figures show why liability insurance costs can vary significantly from one driver to another. Your cost of insurance can also change based on your driving history, insurance provider, where you live, age and credit history. Choosing the lowest limits possible may reduce your car insurance premium, but it may leave you with less protection after a serious accident.
When comparing cheapest car insurance companies, look beyond their advertised rates and compare coverage limits as well as average costs. For context, NerdWallet’s sample profile uses a 35 year old driver with a clean driving history who owns a 2023 Toyota Camry LE, helping provide a consistent basis for comparing prices.
Source For Verify: How Much Does Liability-Only Car Insurance Cost?
When Is Liability Only Car Insurance a Good Choice?
Liability only car insurance is not right for everyone, but it can be a helpful option for some drivers depending on their circumstances. Liability only auto insurance may make sense if you only want bare minimum car insurance that your state requires, especially if you have a spotty driving record and have received expensive quotes from standard insurers. Some specialty insurers offer auto insurance for high risk drivers who may have difficulty finding affordable coverage elsewhere.
It can also be reasonable if you own a car that is not worth much, because paying out of pocket to repair or replace it may cost less than paying for broader coverage. If you have good health insurance, you may already have protection for your own medical expenses and those of covered passengers, although you should check your policy before relying on it for financial liability after an accident. Liability only coverage can also work for someone who rarely drive[s] a car, provided it is stored safely and you don’t drive it without valid insurance.
Keeping at least some liability only insurance can also help prevent a lapse in coverage, which may affect future rates. However, liability only coverage is not always enough. If your state requires more than liability only coverage, you must carry the required additional protection. And if you lease or finance your vehicle, lenders usually require full coverage car insurance, which includes multiple types of coverage beyond liability.
Even when the law does not require it, you may want to afford more than state’s minimum requirements because serious accidents can become expensive after a single misfortune. Adding uninsured motorist coverage can also provide valuable protection if the other driver has little or no insurance.
Our Car Insurance Rate Methodology
To compare rates consistently, we use sample drivers with different personal details, including ages, driving record and credit tier. Good drivers in our analysis had no moving violations and received a good driving discount where applicable. We also compared good credit and poor credit profiles using credit score approximations, rather than the proprietary scoring criteria used by individual insurance providers.
The results represent median rates, so your actual price can differ based on your state, insurance provider and other personal factors. Unless otherwise noted, our sample drivers used the same coverage limits: $100,000 in bodily injury liability coverage per person, $300,000 per crash, $50,000 in property damage liability coverage, plus uninsured motorist bodily injury coverage, collision coverage with a $1,000 deductible and comprehensive coverage.
These figures include the selected additional coverages where applicable rather than representing only minimum coverage. For state specific comparisons, we considered the minimum coverage required by law and adjusted the analysis for factors such as credit tier, at fault crash and driving violations. For example, a driver with $10,000 in property damage, a DUI, a drunken driving violation, or a speeding violation for driving 16 mph over the speed limit may receive different rates.
Our standard vehicle profile uses a 2023 Toyota Camry LE with 12,000 annual miles, representing typical annual miles driven for comparison purposes. We analyzed drivers across ages 20, 30, 35, 40, 50, 60 and 70 to show how rates can change throughout different stages of a driver’s life.
Conclusion
Liability only car insurance can be a practical way to meet your state’s required protection while keeping your premium lower. It can cover injuries and property damage you cause to others, but it usually will not pay to repair your own vehicle. Before choosing this option, compare quotes, consider your car’s value and financial situation and make sure the coverage limits provide enough protection for a serious accident.
Disclaimer
Insurance rates, coverage options and requirements can change over time and vary by state, driver and insurance provider. Any prices or examples in this article are provided for research and informational purposes only and may change at any time. Always verify current rates, coverage limits and legal requirements with your insurance provider or your state’s insurance department before making a decision.
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FAQs
How expensive is just liability insurance?
Liability only car insurance is usually cheaper than full coverage because it mainly protects you against costs you cause to other people. Your price depends on your state, driving record, age, credit history, coverage limits and insurance provider.
Can I get just liability insurance on my car?
Yes, in many cases you can choose liability only coverage if your state allows it and you meet its minimum insurance requirements. However, if you lease or finance your car, your lender may require full coverage instead.
Who has the cheapest car insurance for liability only?
There is no single insurer that is cheapest for every driver. Rates can change based on your location, driving history, age, credit profile and other factors. Compare quotes from several insurance providers to find the lowest price for your situation.
What is a good liability amount for car insurance?
A good liability limit should provide more protection than your state’s minimum if you can afford it. Higher limits can help protect your finances if you cause a serious accident involving injuries or expensive property damage. Consider your assets and financial situation when choosing limits.
Is it better to have liability insurance or full coverage?
It depends on your car and financial situation. Liability only insurance may make sense for an older car with a low value, while full coverage can be worthwhile for a newer or financed vehicle. Full coverage provides protection for your vehicle that liability insurance generally does not.
Is $300 a month normal for car insurance?
$300 per month is higher than many drivers pay, but it can be normal for some high risk drivers or situations. A recent accident, DUI, poor credit, young age, expensive location, or higher coverage limits can increase your premium. Comparing multiple quotes can help you determine whether you are paying more than necessary.
Hi, I’m Shumail, an independent insurance researcher and content writer. I research different insurance topics and explain them in simple and easy language so that general readers can understand them better.
I am not an insurance agent, broker, lawyer, or service provider. I do not sell any insurance products or offer any financial services. The information shared on this website is purely for educational and informational purposes only.
My goal is to help people understand insurance concepts, policies, and basic guidelines in a clear and simple way through well-researched content.
