If you're held responsible after a car accident, liability insurance pays for damages or injuries you might have caused.
It's required in nearly every state, and while most people add comprehensive and collision insurance, the number of drivers with just liability coverage has increased as premiums have soared. Today, full coverage can cost up to three times as much as a liability policy.
CNBC Select reviewed 30 top car insurance companies that offer liability policies and picked standouts for price, customer service, high-risk drivers and more. (You can view our methodology for more on how we made our selections.)
What is liability car insurance?
Liability car insurance pays for damages or injuries to others if you're found responsible for a collision. Every state but New Hampshire requires motorists to have a minimum amount of liability insurance, although that amount is different in every state.
There are two main components to liability insurance:
Property damage liability: Pays for damage to someone else's car or other property (like a fence or mailbox) if you are found responsible for the accident.
Bodily injury liability: After a collision, bodily injury (BI) liability will cover medical bills, lost wages, compensation for pain and suffering and even funeral costs for anyone in the other vehicle. BI liability can also pay for your legal fees if there is a lawsuit.
Liability insurance won't pay for repairs to your vehicle or injuries suffered by someone in your car, however, and it won't reimburse you if your car is stolen or you hit a deer. For those, you'll need collision and comprehensive insurance.
Best for affordability
- 16 discounts are available to lower premiums
- Easily purchase and manage policy online
- Policy add-ons can include roadside assistance and mechanical breakdown insurance
- No gap insurance
- Few branches for in-person services
- Ranks below average for customer service and claims on J.D. Power surveys
Who's this for? Geico has the lowest average rates for liability coverage among insurance companies with widespread availability. It also has nearly two dozen discounts to lower your premiums even further, including for bundling your insurance, for being a homeowner and for paying in full.
Standout benefits: Geico's free claim forgiveness benefit waives the accident surcharge at renewal for your first loss after five years of claim-free coverage. Drivers who haven't reached five years with the brand can purchase this coverage for an additional fee.
Best for customer service
- Affordable premiums
- High customer satisfaction scores from J.D. Power
- Quotes available online
- Only available in 12 states and Washington, D.C.
- Can't buy a policy online
- Fewer discounts than competitors
Who's this for? Erie came in first in J.D. Power's 2024 insurance shopping survey and nabbed the second-highest score for claims satisfaction. It also has fewer complaints than other providers, according to the NAIC, making it a smart pick for great service.
Standout benefits: Erie's Rate Lock feature keeps your premiums the same as long as your policy doesn't change, even if you file a claim.
Best for families
State Farm Auto Insurance
Policy highlights
The largest auto insurer in the U.S., State Farm has an excellent reputation for customer satisfaction and affordable rates, even for teens.
Discounts
More than a dozen discounts, including for safe driving, bundling and good students. Drive Safe & Save program offers up to 30% off for lower mileage and safe driving habits.
Availability
State Farm liability car insurance is available nationwide except for Massachusetts and Rhode Island.
Terms apply.
Read our State Farm auto insurance review.
Pros
- High customer satisfaction ratings
- Available in most states
- Affordable rates for teen drivers
Cons
- Doesn’t offer gap insurance
- Accident forgiveness requires 9 years accident-free
- Have to work with an agent to buy a policy..
Who's this for? State Farm offers several benefits aimed at families, including up to 25% off for students with good grades and a multi-vehicle discount worth up to 20%.
Standout benefits: Drivers who bundle State Farm car insurance with a State Farm homeowners or renters policy can save as much as $1,200 a year.
Best for good drivers
- Lower rates
- Discount for hybrids/EVs
- Not available in all states
- Some discounts not available in every state
- Below-average customer satisfaction scores
Who's this for? Travelers' telematics app, IntelliDrive, monitors your driving for 90 days and offers a 30% discount for low mileage and safe habits behind the wheel.
Standout benefits: Travelers' extended transportation expenses coverage pays for a car service, rental car or public transportation if your vehicle is being repaired after a covered incident. The company also offers gap insurance, which limits your out-of-pocket costs if your car is totaled when it's still being financed or leased.
Best for high-risk drivers
- Accident forgiveness is an add-on
- High customer satisfaction scores from J.D. Power
- Covers modified cars and vehicles converted for the disabled
- Only available in 26 states
- Quotes must be obtained through an agent
- Claims must be filed with an agent
Who's this for? Auto-Owners is an excellent choice if you have at-fault accidents, speeding tickets or DUIs on your record. It offers below-average rates for high-risk drivers and offers SR-22 certificates to drivers classified as high-risk by their state.
Standout benefits: Auto-Owners offers gap insurance and is one of the few providers that will cover modified or cars converted for people with disabilities.
Best for veterans
- Cheapest insurer for liability policies
- Stellar customer satisfaction scores
- Available in all 50 states
- Limited to military families and veterans
- No physical branches
- Customer service not available 24/7
- Safe-driver discount not available in every state
Who's this for? Available to active duty service members, veterans and their families, USAA has very low rates and one of the highest scores on J.D. Power's customer satisfaction survey.
Standout benefits: USAA has two safe driving programs: SafePilot, which rewards good driving habits with up to 30% off, and SafePilot Miles, a usage-based insurance that's an average of 20% cheaper than traditional insurance.
Minimum liability car insurance requirements by state
Each state has different minimum requirements for liability coverage: In New York, for example, drivers must have at least $25,000 in bodily injury coverage per person, $50,000 in bodily injury coverage per accident and $10,000 in property damage coverage per accident.
The amount for each is written with slashes, therefore, New York's minimums are expressed as "25/50/10."
Some states require drivers also to have uninsured/underinsured motorist (UM/UIM) coverage in case they're hit by someone who doesn't have enough coverage or any insurance at all.
In states with no-fault insurance laws, drivers must have personal injury protection (PIP) or medical payment (MedPay), which cover medical expenses for you or your passengers after an accident, regardless of fault.
| Bodily injury liability per person/per accident/property damage liability | Other coverage requirements | |
|---|---|---|
| Alabama | 25/50/25 | None |
| Alaska | 50/100/25 | None |
| Arizona | 25/50/15 | None |
| Arkansas | 25/50/25 | None |
| California | 30/60/15 | None |
| Colorado | 25/50/15 | None |
| Connecticut | 25/50/25 | UM/UIM: 25/50 |
| Delaware | 25/50/10 | PIP: 15/30 |
| Florida | $10,000 property damage | PIP: $10,000 |
| Georgia | 25/50/25 | None |
| Hawaii | 20/40/10 | PIP: $10,000 |
| Idaho | 25/50/15 | None |
| Illinois | 25/50/20 | UM/UIM: 25/50 |
| Indiana | 25/50/25 | None |
| Iowa | 20/40/15 | None |
| Kansas | 25/50/25 | PIP: $4,500; UM/UIM: 25/50 |
| Kentucky | 25/50/25 | PIP: $10,000 |
| Louisiana | 15/30/25 | None |
| Maine | 50/100/25 | UM/UIM: 50/100 MedPay: $2,000 |
| Maryland | 30/60/15 | UM: 30/60/15 |
| Massachusetts | 20/40/5 | UM: 20/40 PIP: $8,000 |
| Michigan | 50/100/10 | PIP: $50,000 and up |
| Minnesota | 30/60/10 | UM/UIM: 25/50 PIP: $40,000 |
| Mississippi | 25/50/25 | None |
| Missouri | 25/50/25 | UM/UIM: 25/50 |
| Montana | 25/50/20 | None |
| Nebraska | 25/50/25 | UM/UIM: 25/50 |
| Nevada | 25/50/20 | None |
| New Hampshire | 25/50/25** | UM: 25/50 MedPay: $1,000 |
| New Jersey | 35/70/25 | UM/UIM: 35/70 PIP: $15,000 |
| New Mexico | 25/50/10 | None |
| New York | 25/50/10 | UM/UIM: 25/50 PIP: $50,000 |
| North Carolina | 30/60/25 | UM/UIM: 50/100/50 |
| North Dakota | 25/50/25 | UM/UIM: 25/50 PIP: $30,000 |
| Ohio | 25/50/25 | None |
| Oklahoma | 25/50/25 | None |
| Oregon | 25/50/20 | UM/UIM: 25/50 PIP: $15,000 |
| Pennsylvania | 15/30/5 | PIP: $5,000 |
| Rhode Island | 25/50/25 | None |
| South Carolina | 25/50/25 | UM: 25/50/25 |
| South Dakota | 25/50/25 | UM/UIM: 25/50 |
| Tennessee | 25/50/25 | None |
| Texas | 30/60/25 | None |
| Utah | 30/65/25 | PIP: $3,000 |
| Vermont | 25/50/10 | UM: 50/100/10 |
| Virginia | 50/100/25 | None |
| Washington | 25/50/10 | None |
| Washington, D.C. | 25/50/10 | UM: 25/50/5 |
| West Virginia | 25/50/25 | UM: 25/50/25 |
| Wisconsin | 25/50/10 | UM: 25/50 |
| Wyoming | 25/50/20 | None |
Source: *Florida only requires $10,000 in property damage liability, ** New Hampshire only requires proof of financial responsibility, either with insurance, a bond or cash deposit
New Hampshire does not require drivers to have car insurance, but they must show proof of financial responsibility in case they're liable for injuries or damages.
Pros and cons of liability car insurance
- Much cheaper than full coverage.
- Older cars may not be worth the price of full coverage
- Doesn't pay for repairs for your car
- Doesn't cover damages from animals, other non-collision events.
- Doesn't pay for medical expenses for anyone in your vehicle
FAQs
Is liability-only insurance a good idea?
Whether just having liability insurance is a good idea depends on your financial situation and the condition of your car. If your vehicle is worth less than 10 times what you would pay in annual premiums, it might not be worth paying for full coverage. If you expect to get many more years out of your car, however, liability coverage may be insufficient. If your car is still being leased or financed, you'll most likely have to get full coverage.
How much does liability-only car insurance cost?
In 2024, the national average for a minimum liability policy was about $736 a year. That's compared to around $2,638 a year for full coverage auto insurance.
What is no-fault insurance?
No-fault car insurance can cover your expenses, including medical bills and lost wages, regardless of who's at fault in an accident. Also known as personal injury protection (or PIP), it's required in 12 states.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every auto insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. To research the best insurance companies, we compiled over 100 data points on more than a dozen insurance companies. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
CNBC Select analyzed dozens of insurance companies that offer liability-only policies, focusing on rates, coverage, availability, discounts, customer service and online experience.
The minimum coverage rate for each provider was based on a 40-year-old driver in Colorado with a clean driving record and good credit driving a 2022 Toyota Camry 12,000 miles a year.
Customer satisfaction was determined using data from the Better Business Bureau, the National Association of Insurance Commissioners and average rankings from J.D. Power's auto insurance survey in 11 regions.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
With those criteria, our picks for the best liability-only car insurance are:
Best for affordability: Geico
Best for families: State Farm
Best for good drivers: Travelers
Best for high-risk drivers: Auto-Owners
Best for customer service: Erie
Best for veterans: USAA
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