Best Liability Only Car Insurance

Liability only car insurance is a specific type of auto insurance that you can get if you don’t want or can’t afford a more comprehensive insurance policy. It meets the bare minimum of what is legally required for you to have when you own a vehicle that you operate on the road. Many insurance providers offer liability only car insurance, but some are a better fit for certain drivers than others. Whether you need cheap insurance, or you just don’t want to waste money on coverage you don’t need, consider a liability only policy.  

Quick Look: Best Liability Only Car Insurance

• Best for Active Military Members: USAA
• Best for Discounts: Nationwide
• Best for Rideshare Drivers: State Farm
• Best for Pay-Per-Mile Insurance: Allstate

4 Best Liability Only Car Insurance

The following are a few of the largest liability only auto insurance policies providers in the country and who they may be better for. 

1. Best for Active Military Members: USAA

The United Services Automobile Association (USAA) is an insurance provider that offers policies to those who have served in the armed services and select family members. USAA is a good choice for those who are active military members or veterans, but unfortunately it doesn’t offer policies for those who don’t fall into those groups. Its insurance policies are fairly affordable and it has a solid reputation. However, it doesn’t offer unique add-on coverages such as gap insurance or new car replacement. USAA also offers several other types of insurance policies, making it easy to bundle and save.       

2. Best for Discounts: Nationwide

Nationwide offers affordable liability coverage for all types of drivers. It offers several add-on coverages to customize your policy, including gap insurance and roadside assistance. It also offers total loss deductible waiver and identity theft coverage, which are much less common to be offered on state-minimum insurance policies. Nationwide also offers several bundling discounts when you purchase other types of insurance policies with them. Considering the fact that Nationwide is one of the largest insurance providers in the country, you’re sure to find another type of coverage you can use to save on both policies. 

3. Best for Rideshare Drivers: State Farm

State Farm is an insurance company with insurance rates overall below the national average, including its state minimum liability insurance requirements. State Farm offers basic liability coverage in addition to comprehensive and collision coverage, which gives you options for your coverage. While it does offer typical add-on coverages, such as roadside assistance, it doesn’t offer other common coverages, such as gap insurance or accident forgiveness. Like most other large insurance providers, State Farm allows you to bundle your auto insurance with other types of insurance it offers for extra savings.  

4. Best for Pay-Per-Mile Insurance: Allstate

Allstate offers liability insurance as well as full coverage insurance at a fairly moderate price for adult drivers. However, its rates for teen drivers are considered much more affordable than other insurance providers' policies for young drivers, which can be a major benefit if you’re looking for a policy for a new driver. While you can save on your policy by bundling, it does not offer discounts for multiple cars on the same policy. Allstate offers unique add-on coverages, which includes protection for portable electronics and media that are damaged or stolen from the interior of your car. 

What is Liability Only Car Insurance?

Liability only car insurance is a basic type of auto insurance policy that you can purchase if you’re looking for the bare minimum coverage that you can have. Liability only policies include two main types of coverage.

• Bodily injury liability coverage: This coverage compensates anyone who you injure during a collision by helping to pay for medical bills.  
• Property damage liability coverage: This coverage compensates anyone whose property is damaged during a collision.

Note that your liability coverage will not compensate you for any of your own medical bills or repair bills. The amount of each type of coverage that you need varies depending on the state that you live in. In some states, you may be required to also carry personal injury protection (PIP) coverage that helps you and your passengers pay for medical bills. 

How Does Liability Only Car Insurance Work?

Liability only car insurance is considered the lowest and most basic level of auto insurance you can get. It’s typically the minimum insurance required in your state for your vehicle to stay on the road legally. Liability only auto insurance offers coverage for property damage and bodily injury. 

This basic level of insurance will help pay for another person’s medical care costs, vehicle replacement or repair and much more, but it won’t provide coverage for damages to you or your own vehicle. While it may seem like this insurance is all you need, it won’t help with coverage in many specific situations and incidents, and it has a very limited amount of damages that it does cover. 

Opposite of liability only car insurance is full-coverage insurance. Full-coverage insurance offers liability coverage in addition to collision and comprehensive coverage. Full-coverage policies may also offer medical coverage and uninsured motorist coverage. Liability only insurance essentially offers coverage for other people in the case of an accident, while full coverage offers protection for you and your passengers in the case of an accident. 

All insurance companies offer liability car insurance, but certain providers may offer you a better policy than others. Additionally, you may get a better price for your policy with one provider compared to another. Even if you only get liability insurance, you may be able to bundle other types of policies, such as homeowners or renters insurance and save with certain insurers.

How Much Does Liability Only Car Insurance Cost?

The cost of liability only car insurance can vary depending on several factors such as the driver's age, location, driving record, and the type of vehicle being insured. On average, liability only car insurance can cost around $50 to $150 per month.

However, this amount can significantly increase for high risk drivers or individuals insuring expensive vehicles. For example, younger drivers or those with multiple traffic violations on their record may face higher premiums for liability only coverage.

Advantages of Liability Only Car Insurance

You gain a few benefits from purchasing liability only car insurance, including the following.

Lower prices

Liability only car insurance is significantly more affordable than more comprehensive auto insurance policies. If you purchase liability only coverage, your insurance provider is only responsible for covering the repair and medical bills of the other party involved in the accident. In turn, the insurance company spends less money per accident on liability only policies, resulting in lower rates.

Only the Necessary Coverage

Liability insurance is the more basic type of insurance you can have for your car in order to legally drive. While this might sound like a drawback, it can be a major benefit if you own an older vehicle. When you drive a vehicle with more miles or that’s older, you might find yourself in a situation where it would cost more to repair your car than it would to replace it following a collision. With liability only insurance, you won’t pay more than you need for coverage on a car that will likely be totaled following an accident. 

Drawbacks of Liability Only Car Insurance

Here are some of the drawbacks that you will to consider before getting liability only car insurance:

You're Responsible for Your Repair Bills in Case of an Accident

The biggest drawback to liability only car insurance is that you will be responsible for all of your own repair bills if you’re involved in an accident. This fact can be a major drawback if you drive a more expensive vehicle, which might require thousands of dollars in repairs following even a minor collision.

No Coverage for Non-Collision Vehicle Damage

Liability only car insurance also offers you no coverage in the event that your vehicle is damaged outside of the context of a collision. For example, if a thunderstorm causes a tree branch to fall on your car and crush your windshield, your car insurance will offer no assistance covering these repair bills. Your liability only coverage will also not help you in the event that your car is vandalized or stolen. 

Choosing the Best Insurance for Your Car

Finding the best liability only car insurance policy is crucial if you are looking to meet your state's legal requirements while also protecting yourself financially in case of accidents. By carefully considering factors such as coverage limits, deductibles, and customer service reputation, you can ensure you are getting the most value out of your insurance policy. It is important to shop around, compare quotes, and tailor the policy to fit individual needs and budget.

Frequently Asked Questions