Top Rated Liability Car Insurance Companies of 2025

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Liability-only car insurance is the cheapest way to meet legal requirements for car insurance coverage in most states. The two types of liability coverage are bodily injury liability coverage and property damage liability coverage. These policies cover other people’s injuries and vehicle damage when you are at fault for an accident, but they won’t pay for damage to your own vehicle or for injuries sustained by you or your passengers. 

Many drivers opt for full coverage car insurance instead of minimum liability-only coverage, because they want the financial protection of coverage for their own vehicle. But if you’ve decided liability-only insurance is right for you, then it’s worth identifying the most affordable option. 

The main concern when buying liability-only car insurance is generally affordability. After all, this type of insurance won’t cover damages to your own car or injuries you sustain in an accident. So, the goal is often to remain a legal driver while paying as little as possible.

That said, auto insurance providers vary their cost structures, which means some providers are cheaper for certain people. You might also prefer a provider with an easier quoting process, or that’s known for excellent customer service. By comparing different providers, you can find the most affordable car insurance for your situation.

Here are the best cheap liability insurance companies of 2025. 

Best Cheap Liability Insurance Overall: GEICO Auto Insurance

GEICO is one of the most reputable insurance companies in the country, offering a variety of insurance products such as homeowners insurance, pet insurance, and car insurance. The company also offers cheap liability insurance, with experts estimating the average cost to be around $500 per year. Keep in mind that the exact cost varies based on factors such as your age, location, gender, driving history, and credit score.  

With a large network of local agents, GEICO makes getting assistance from an actual person easy. If you prefer to apply online, the digital application process takes just a few minutes. Once enrolled, you can pay your bills and adjust your policy conveniently through the GEICO mobile app — which will be especially useful if you ever decide to upgrade your policy to include more coverage.

Highlights:

• Competitive rates
• Local agents available in all 50 states and Washington, DC 
• A user-friendly online quoting system

Read our GEICO car insurance review. 

Best Cheap Liability Insurance for Affordability: USAA Auto Insurance

The USAA is a financial services company that caters specifically to people with a connection to the U.S. military. If you’re a service member, a veteran, a pre-commissioned officer, or the spouse or child of someone who meets those definitions, you’re eligible for USAA membership. Once you’ve become a member, you will gain access to the company’s wide selection of financial services, including cheap liability insurance.

Eligible members can also earn discounts for bundling their home and auto insurance, safe driving, and insuring multiple vehicles. So, if you meet the USAA membership criteria, this will likely be one of your most affordable options. 

Highlights:

• Reduced rates for military members/veterans and their immediate families
• Available in all 50 states and Washington, D.C.
• Save up to 30% on your monthly premium for safe driving with the USAA SafePilot program

Read our USAA car insurance review. 

Best Cheap Liability Insurance for Seniors: Travelers Auto Insurance

Travelers is an insurance company with competitive rates for liability-only car insurance. What sets this provider apart is their IntelliDrivePlus program. It’s a mobile app that tracks your miles and driving behavior. By enrolling in this feature, drivers can save up to 30% for lower mileage and safe driving. So, if you’re retired or no longer have to commute regularly, this could lead to major insurance savings. 

Whatever your age, there’s a lot to like about cheap liability insurance from Travelers. The online quoting system is convenient and user-friendly, allowing you to quickly determine how much you’ll have to pay. Travelers also provides many discounts, including for safe drivers and homeowners. 

Highlights:

• Affordable policies for all ages
• Convenient online quoting system
• Wide range of car insurance discounts, including the IntelliDrivePlus program for safe, low-mileage drivers

Read our Travelers car insurance review.

Best Cheap Liability Insurance for Teens: State Farm Auto Insurance

State Farm is one of the largest insurance providers in the country, offering nationwide coverage and cheap liability insurance. And while State Farm, like all insurance providers, generally charges young drivers more, the rates are still reasonable. Experts estimate that teen drivers can expect to pay under $1,000 annually for liability-only insurance. 

State Farm is a full-service insurance company offering 19,000 local agents and a seamless online application process. That makes it easy to purchase a policy whether you prefer working with real people or an online system. And once you have a policy, you can pay online and even enroll in autopay to maximize convenience. 

Highlights:

• Reasonable rates for young drivers with a good student discount available
• A nationwide network of local agents
• Online bill pay and autopay features

Read our State Farm car insurance review. 

Best Cheap Liability Insurance for Customer Satisfaction: Erie Auto Insurance

Erie Insurance is an affordable insurance provider available in 12 states and Washington, D.C. This company offers cheap liability insurance and stands out by providing fantastic customer service. For instance, Erie Insurance earned a 733 JD Power customer satisfaction rating, making it the third-best in the country for 2024. 

While Erie Insurance has grown substantially since its early days in Erie, Pennsylvania, it continues to bring a community feel to the larger insurance market. Customers generally give Erie Insurance better reviews than many of the company’s nationwide competitors. The company also reports that 90% of its customers remain with the provider year after year.

Highlights:

• Known for excellent customer service
• Avoid insurance rate increases with Erie’s Rate Lock feature
• Only available in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin, and Washington, D.C. 

Read our Erie car insurance review. 

Factors That Affect Liability Insurance Costs

Here are key considerations that determine the cost of liability-only car insurance:

• Driving Record. Traffic tickets, DUIs, and at-fault accidents often increase the cost of liability insurance. 
• Vehicle Type. If the model and make of your car generally gets better safety ratings, you’ll likely be charged less for insurance. 
• Age. Younger drivers and seniors usually have to pay more for liability insurance. For young drivers, prices tend to decrease around age 25.
• Mileage per year. The more you drive, the more you’re likely to pay for liability insurance. This is because you’ll be spending more time on the road, which increases your chances of being in an accident. 
• Location. Some areas (like congested cities) bring a greater risk of car accidents. If you live in such an area, you’ll likely have to pay more for liability insurance.
• Coverage Limits. Your liability coverage limit is the maximum amount the insurance company will pay on your behalf. So, if you owe even more than the limit, you’ll have to pay the difference out of pocket. You can choose to increase the liability coverage limit to protect yourself from such a circumstance, but you’ll have to pay more for insurance. 
• Credit Score. Insurance providers will assess your credit score, with lower scores often bringing higher prices. Similarly, the higher your credit score, the more likely you qualify for the cheapest liability car insurance.   

Tips for Finding the Cheapest Liability Insurance 

Here’s advice to keep in mind as you search for affordable car insurance:

• Compare Quotes. Most car insurance providers have an online quoting system to allow you to check your rates in minutes. Shopping around rather than taking the first policy you find could save you hundreds of dollars. 
• Increase Deductibles. There’s no deductible for liability claims. However, if you purchase additional coverage (like comprehensive or collision), then increasing the deductible would lower your car insurance premium.
• Look for Discounts. Many providers offer a range of car insurance discounts for certain drivers — including good students, safe drivers, and customers willing to buy auto and home insurance together. As part of your research, keep an eye out for discounts that you can use to your advantage. 
• Improve Your Credit Score. A better credit score often brings lower rates. So, try to build credit by paying your bills on time, reducing your debts, and requesting higher credit limits. 
• Consider Usage-Based Insurance. If you’re not a frequent driver, look for providers that offer a usage-based insurance (UBI) program or pay-per-mile insurance. These programs will base your rate on the amount of miles you drive or the riskiness of your driving habits.
• Maintain a Clean Driving Record. Accidents and traffic tickets drive up insurance costs, so it’s best to drive as safely as possible and keep your record clean. 

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Best Cheap Liability Insurance FAQ

Why You Should Trust Us: How We Chose the Best Cheap Liability Insurance

At Business Insider, we look at several factors to pick the best cheap liability insurance, including pricing, coverage options and availability, customer satisfaction, discounts available, and more. We then take our research and provide a general overview of each insurer to give you a feel for what makes sense for your unique situation. 

Choosing the right car insurance provider can save you money and give you peace of mind if you are ever in an accident. Liability-only car insurance meets most states’ minimum coverage requirements to legally drive. Whether or not you choose to add more coverage is up to you. 

Read more about how Business Insider reviews auto insurance companies.