The 10 Best Cheap Liability Car Insurance Companies
Shopping for auto coverage may seem like a dragging process. But it shouldn’t be the case. The more you compare car insurance quotes, the better decisions you’ll make about your plan. So, we’ll be reviewing cheap liability car insurance providers. Liability vehicle policy protects other motorists’ property and bodily injuries when you’re at fault in an accident. It’s the most basic auto coverage you’ll find with cheap car insurance companies. However, it doesn’t cover you or your automobile if you cause an accident. Still, it’s a mandatory requirement to register and legally drive a car in 48 states. Also, it’s the easiest way to get cheap full coverage auto insurance in most areas.
Bodily injury (BI) and property damage (PD) liabilities are the two liability insurance provisions. The first part pays third-party medical bills while the latter pays for the victim’s property damage. That’s why some providers call it third party insurance. It only protects third parties in an accident. State laws and personal preferences determine how much protection you should buy. It’s always smart to confirm local regulations because each state sets its minimum policy requirements. For example, BI and PD make the best affordable cheap car insurance Florida plans. But this could differ in your region depending on the set limits.
Liability vehicle cover is arguably the most vital type of surety to carry. Nearly all states need it. The two that don’t ask for liability still require a demonstration of financial ability to pay for damages during incidents. So in this article, we’ll highlight the ten best cheap liability car insurance companies. But before that, we’ll tell you how much coverage to buy plus how much it should cost. And if you’re a novice motorist, remember to check out our insightful resource on car insurance for new drivers.
Cheap Liability Car Insurance: Everything You Need To Know
Cheap liability car insurance is the baseline for vehicle protection and the best affordable car insurance. Other auto coverages you can purchase include collision indemnity, comprehensive cover, medipay policy, and personal insurance protection, among others. But you can’t get any of these if you don’t have enough liability coverage. In addition, liability cover is particularly useful if you drive multiple vehicles that you don’t own. It could serve as your non owner car insurance. So, if you don’t have it, consider getting one soon to meet the minimum state requirements.
Checking multiple car insurance quotes online is the fastest way to find low-cost auto coverage. Luckily, plenty of car insurance comparison sites let customers match up policy rates for free. Besides, the best platforms come with search filters. You can use the filters to customise your search for accurate results. Californians, for example, can look up no down payment car insurance in California.
What Is Liability Car Insurance and What Does It Cover
Liability coverage is essential when you are liable for injuries or damages to other motorists or their property. It starts the moment you cause an at-fault accident. But this type of policy plan only covers up to your maximum payments. Many drivers often shop for cheap liability car insurance to fulfil the minimum state requirements. If the compensation amount surpasses your total lump sum, you’ll be paying the balance out of pocket. It’s the reason we recommend adding other coverages to your baseline protection.
A Quick Glance At Liability Auto Coverage
Let’s pause for a moment. Now, instead of using the term liability, let use words such as obligation and responsibility. The two words carry the same meaning as a liability. Eventually, this type of policy represents your responsibility to pay for an accident.
Most accidents often result in physical or financial losses. And when you’re at fault, the victims have legal rights to seek compensation for their suffering. If you don’t have liability protection, these people could sue you to obtain their payments. The courts will find you responsible and make you pay up.
Drivers might end up suing each other endlessly without liability insurance. Compulsory insurance regulations were not in place until 1930. Before then, car accident victims hardly received deserving compensations. Today, however, each state has laws on financial responsibility. You could deposit a large amount of money into a state bank for use during accidents. But the easiest way to satisfy state requirements is obtaining vehicle insurance.
Liability Car Insurance: Requirements, Limits, and Coverage Levels
Individual state authorities set the requirements for this coverage within their jurisdiction. But all liability policies have specific limits. Standard plans often come with distinct limits for;
- Bodily injury claims per victim
- Bodily injury for each incident
- Property damage liability per incident
You’ll see state regulations writing these coverages in the form of three numbers with slash separations. For example, a 50/100/50 liability policy will cover:
| Limit | Description |
|---|---|
| 50/ | $50,000 for bodily injury claims per incident victim |
| 100/ | $100,000 for bodily injury claims for each incident |
| 50 | $50,000 to compensate property damage claims per incident |
Here’s what bodily injury and property damage policies cover:
Bodily Injury
BI pays the medical bills resulting from an accident you caused. The claims are on a per-person and per-incident basis.
Apart from physical injuries, BI pays for pain and suffering, lost wages, plus other expenses that you are responsible for after a car collision. Bodily injury liability is a mandatory policy in all states but New Hampshire and Florida. It helps to pay for;
- Medical bills resulting from auto collisions
- Physical and emotional discomfort or suffering
- Loss of income or reduced earnings because of an accident
Property Damage
PD compensates for the property you damaged during the incident. Property destruction can be a victim’s bicycle, car, or home, among others. Be aware that PD might also include loss-of-use expenses for which you are liable. Property liability insurance helps to pay for;
- Car damage and repairs
- Repairs for dented structures
- Resulting debris from an accident, such as signage and trees
Different states apply different formulas for minimum liability coverage. While most use the 25/50/25 plan, others have 50/100/25 or 50/100/50. Moreover, some policies provide a combined limit. It means using one limit regardless of the type of property damage or bodily injury claim.
How Much Is Enough Car Liability Coverage
Although you’ll want the best cheap liability car insurance, it’s advisable to have a personal baseline. As a rule of thumb, consider carrying a minimum of 100/300/100 for financial responsibility towards at-fault accidents. Using higher limits could be potentially helpful in catastrophic situations. Also, remember that you could exhaust state minimum limits quickly.
Let’s imagine you rear-bumped a car with two occupants. And say you have the minimum state requirement of 25/50/25. Now, each person claims $35,000 to pay for surgeries and continuing treatment. The vehicle with a $33,500 value gets totaled. You would use up your policy. After that, the two people will sue you for the money they are yet to receive. So, you’d still owe $10,000 per victim, and $8,500 for the car, totalling to $28,500.
Currently, it’s so easy to cause an accident that goes beyond your limits. Vehicles are getting costlier by the day, particularly with state-of-the-art automation and safety features. And healthcare isn’t easier either. A couple of physician visits could clear your liability deposits. Then, it will expose you to expensive court cases and eventual out-of-pocket compensations.
Therefore, stretching your cheap liability car insurance from the local limits to 100/300/100 will raise your monthly policy by up to about $100. Don’t think this bill is insignificant. In contrast, it could save you from future financial stress or bankruptcy.
What’s The Cost Of Cheap Liability Car Insurance
A 2016 survey by the Insurance Information Institute shows that drivers spent an average of $567 on liability protection. It means they used approximately $50 each month. Even though some drivers would just obtain liability coverage, others choose to include more options for enhanced coverage.
Take note that states might ask for other policies on top of the liability plan. In Maryland, for example, motorists should have personal injury protection. Illinois is another unique state where drivers must have uninsured motorist protection. Moreover, the best cheap liability car insurance differs by state. According to the above report, Louisiana drivers pay about $835 for this coverage. Similarly, Indiana motorists spend an average of $399.
Factors such as driving history, zip code, age, and mileage, can influence prices. And the best way to secure deals is to compare car insurance rates online.
What Doesn’t Auto Liability Protection Cover
Getting liability protection only solves one piece of the puzzle. But it’s not a one-stop auto coverage solution. So, while it’s an essential plan, it doesn’t cover you in some situations. Some elements the policy won’t pay for include:
- Compensations for hit-and-run
- Lost wages following an accident
- Rental car benefits
- Your hospital bills
- Your vehicle damages
With that in mind, you could get these policies to cover the above exclusions:
- Comprehensive Insurance: It protects your car against losses from vandalism, theft, or environmental causes like hail and falling branches
- Personal Injury Protection: PIP pays your health expenses, lost income, as well as death benefits
- Roadside Assistance: The policy provides on-demand assistance like jump starts, tire changes, as well as lockout service, among others
- Medical Payments: MedPay covers part of your medical expenses, which can compensate deductible for health cover
- Collision Coverage: It pays for your vehicle’s damages in an accident, irrespective of the at-fault driver
- Uninsured or Underinsured Motorist: The policy covers your costs when an uninsured or underinsured motorist causes an accident. Also, the plan can pay for hit and run damages
- Rental Benefits: It covers rental cars to your maximum payments
Full coverage is when you combine collision, liability, and comprehensive coverages. Though, it’s somewhat confusing because it does not offer MedPay or uninsured motorist accidents.
The 10 Best Cheap Liability Car Insurance Companies
Not all insurers are created the same. Some apply premium rates for little coverage. Others are affordable but with lousy customer support. You wouldn’t want to pick up a policy and learn all these later. That’s why it’s always smart to obtain at least three auto coverage quotes when shopping for cheap liability car insurance. The following companies stand out from the competition. We reviewed these underwriters based on customer satisfaction, financial stability, and claims satisfaction, among others.
1. USAA Liability Car Insurance
USAA ranks first on our list of liability insurers for various reasons. Its incredible online tools will let you buy car insurance online and manage your policy remotely.
Top Industry Reviews
| Industry Reviewer | Type of Rating | Value |
|---|---|---|
| NAIC | Complaint Index | 0.84 |
| AM’s Ratings | Financial Capability | A++ |
| J.D. Power | Claims Satisfaction | 5 |
Features
- All standard coverages
- Accident forgiveness
- Rideshare insurance
- Roadside help
- Gap insurance
- Rental protection
Pros:
- Over 12 discounts
- Decent technological features
- Accident forgiveness
- Excellent customer service
- Great offers for new drivers
Cons:
- Restricts membership to U.S. military, veterans, and family members
- Doesn’t cover leased vehicles
2. Farm Bureau Liability Car Insurance
While Farm Bureau offers services in 14 states, it is a household name in the auto coverage industry.
Top Industry Reviews
| Reviewer | Scores |
|---|---|
| AM’s Best Financial Strength | A |
| AM’s Best Credit Scores | BBB- |
| Better Business Bureau Ranking | A+ |
Features
- All standard coverages
- No-fault protection
- Bundle discounts
- Rewards for multiple policies
- Customer service calling without voice prompts
Pros:
- Great selection of discounts
- Affordable premiums
- Good claims payout
- Excellent customer support
Cons:
- Watch out for canceled policies after your first claim
3. Erie Liability Car Insurance
Erie is a great liability car insurer, although with a small jurisdiction.
Top Industry Reviews
| Industry Reviewer | Type of Rating | Value |
|---|---|---|
| NAIC | Complaint Index | 0.59 |
| AM’s Ratings | Financial Capability | A+ |
| J.D. Power | Claims Satisfaction | 5 |
Features
- All standard coverages
- Pet injury
- Roadside help
- Personal property protection
- Rental car reimbursements
- Gap insurance
- Accident forgiveness
Pros:
- More than seven discounts
- Amazing insurance rates
- Tailored customer service
Cons:
- No online support
4. Auto-Owners Liability Car Insurance
Auto-Owners is the first choice for most drivers who need cheap vehicle coverage.
Top Industry Reviews
| Industry Reviewer | Type of Rating | Value |
|---|---|---|
| NAIC | Complaint Index | 0.58 |
| AM’s Ratings | Financial Capability | A++ |
| J.D. Power | Claims Satisfaction | 5 |
Features
- All standard coverages
- Roadside help
- Rental car benefits
- Towing services
- Leased car protection
Pros:
- Decent driver discounts
- Incredible customer service
Cons:
- Limited technology features
5. State Farm Liability Car Insurance
Consistent customer service with a wide variety of policies will make you sign up for liability coverage with State Farm.
Top Industry Reviews
| Industry Reviewer | Rating | Value |
|---|---|---|
| NAIC | Complaint Index | 0.49 |
| Better Business Bureau | Customer Satisfaction | A+ |
| AM’s Ratings | Financial Capability | A++ |
| J.D. Power | Claims Satisfaction | 3/5 |
Features
- All standard coverages
- Accident forgiveness
- Rental car benefits
- Compensation for travel costs
- Rideshare insurance
Pros:
- The wide network of local agents for personalised services
- Sound financial strength
- Great auto coverage selection
- Excellent customer satisfaction
Cons:
- Higher rates than most of its competition
6. American Family Liability Car Insurance
You can get cheap liability car insurance with American Family because of its deep discounts.
Top Industry Reviews
| Industry Reviewer | Type of Rating | Value |
|---|---|---|
| NAIC | Complaint Index | 0.64 |
| Better Business Bureau | Customer Satisfaction | A |
| AM’s Ratings | Financial Capability | A |
| J.D. Power | Claims Satisfaction | 3/5 |
Features
- All standard coverages
- Accident forgiveness
- Protection for leased vehicles
- Rideshare insurance
- Gap insurance
Pros:
- Shared policies
- Great financial strength
- Excellent customer satisfaction
- Above-average claims satisfaction
- Great options for bundling policies
Cons:
- A limited selection of discounts
7. GEICO Liability Car Insurance
GEICO features in the top ten list of best nationwide insurance for its excellent customer service, amazing online features, and attractive rates.
Top Industry Reviews
| Industry Reviewer | Type of Rating | Value |
|---|---|---|
| NAIC | Complaint Index | 0.92 |
| Better Business Bureau | Customer Satisfaction | A+ |
| AM’s Ratings | Financial Capability | A++ |
| J.D. Power | Claims Satisfaction | 3/5 |
Features
- All standard coverages
- Glass protection
- Mechanical breakdown indemnification
- Emergency road assistance
- Accident forgiveness
- Rideshare insurance
Pros:
- Over ten discounts, including price-cuts for military members
- Superb customer satisfaction
- Strong financial capability
- Excellent claims satisfaction
- Affordable rates
- Decent technological features
Cons:
- Limits interaction with local agents
8. Progressive Liability Car Insurance
Progressive may not have the best affordable policy premiums like some of its competitors. However, you’ll still get cheap liability car insurance through deeply discounted rates.
Top Industry Reviews
| Industry Reviewer | Type of Rating | Value |
|---|---|---|
| NAIC | Complaint Index | 0.80 |
| Better Business Bureau | Customer Satisfaction | A+ |
| AM’s Ratings | Financial Capability | A++ |
| J.D. Power | Claims Satisfaction | 3/5 |
Features
- All standard coverages
- Cover for pet injuries
- Gap protection
- Accident forgiveness
- Reimbursements for rental cars
- Roadside assistance
Pros:
- Special features for young drivers
- Allows motorists with a poor driving history
- Incredible discounts
- Strong financial capability
Cons:
- On the pricey side
9. MetLife Liability Car Insurance
MetLife is an excellent choice for drivers with new vehicles.
Top Industry Reviews
| Industry Reviewer | Type of Rating | Value |
|---|---|---|
| NAIC | Complaint Index | 0.69 |
| Better Business Bureau | Customer Satisfaction | A+ |
| AM’s Ratings | Financial Capability | A+ |
| J.D. Power | Claims Satisfaction | 4/5 |
Features
- All standard coverages
- Towing services
- Renters’ insurance
- Replacements for significant auto parts
- Gap insurance
- Replacements for totaled cars
- Glass repairs
- Roadside help
Pros:
- 10+ discounts
- Excellent claims satisfaction
- Exceptional financial stability
- Outstanding customer satisfaction
- Admirable new vehicle offers
Cons:
- Best deals limited to group offers
10. Nationwide Liability Car Insurance
Nationwide is a great underwriter for detailed policies and affordable insurance rates.
Top Industry Reviews
| Industry Reviewer | Type of Rating | Value |
|---|---|---|
| NAIC | Complaint Index | 0.64 |
| Better Business Bureau | Customer Satisfaction | A+ |
| AM’s Ratings | Financial Capability | A++ |
| J.D. Power | Claims Satisfaction | 3/5 |
Features
- All standard coverages
- Accident forgiveness
- Roadside assistance
- Compensation for rental cars
- Available throughout the U.S.
Pros:
- Best for straightforward deals
- Online policy management
- Outstanding financial strength
- Above-average claims satisfaction
- Exceptional customer experience
Cons:
- Fickle responses to questions
The Bottom Line
Everyone wants to save money. And obtaining cheap liability car insurance is one way to do it. There are plenty of companies that provide liability protection at incredible rates. But you won’t find them if you don’t do some digging around. We recommend comparing at least three auto insurance quotes to find the best match. Whenever possible, you should compare those rates online. In this way, you can match up multiple insurers simultaneously, using free comparison sites.
Even so, it’s always smart to add other coverage options to your primary policy. Keep in mind that insurance rates isn’t the only thing to consider. You could stick with the state minimums and drive your car. But you will be responsible for additional out-of-pocket damages if you cause an accident. It’s an expense worth paying for when you want the best coverage terms. In some cases, more is better.
Therefore, when stacking up different underwriters online, take into account the cost while looking at other factors. Be sure to assess reliability ratings, ease of filing claims, customer satisfaction ratings, and financial strength. You’ll find a fit provider for your needs if you combine all these factors. Plus, you could save lots of cash through this process.
Frequently Asked Questions (FAQ)
Will liability auto insurance protect my car from other at-fault motorists?
Liability auto coverage only protects other motorists and their property if you cause an at-fault accident.
Is liability auto insurance full coverage?
No. Liability covers the injuries you inflict to other persons or their property while driving. On the other hand, full coverage includes damages to your automobile.
Is liability car insurance enough for my car?
Yes and no. Liability protection is the legally acceptable baseline coverage that drivers must have in most states. But other states like Maryland and Illinois make it mandatory for drivers to carry uninsured motorist policy.
What does a liability only cover stand for?
Liability only assurance refers to two types of policies that go hand in hand. The coverages are bodily injury and property damage liabilities. These plans help to cover third-party medical expenses, loss of income, car repairs, and vehicle replacements.
When should I get liability insurance?
You should obtain liability indemnity if you don’t have auto coverage, and you don’t own a vehicle. Getting this policy will cover you when driving rental autos.
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