Liability car insurance is the most basic policy, covering damage or injuries to another car, driver or passenger. Almost all states require you to at least have liability insurance if you want to be on the road.
Soaring insurance prices have led some to only buy liability insurance, which can be a third of the cost of full coverage. Liability can also be a good option if your vehicle is worth less than ten times your annual premium.
CNBC Select analyzed dozens of car insurance companies, choosing six that not only stand out in price for liability insurance, but that are tops for customer service, discounts, flexible credit and more. (View our methodology for more on how we chose.)
Best liability-only car insurance
- Best for customer service: Erie
- Best for families: State Farm
- Best for discounts: Progressive
- Best for a bad driving record: Auto-Owners
- Best for bad credit: Travelers
- Best formilitary members and veterans: USAA
Best for customer service
Erie Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Erie Insurance offers auto insurance for many different situations and affordable premiums. Several different coverages allow you to customize your policy.
Terms apply.
Pros
- Affordable premiums
- Below-average NAIC complaint index
- High customer satisfaction scores from J.D. Power
- Quotes available online
Cons
- Only available in 12 states and Washington, D.C.
- Limited online and app capabilities
- Claim filing is not available online
Who's this for?Erie came in first inJ.D. Power's 2024 insurance shopping surveyand nabbed the second-highest score forclaims satisfaction. It also has fewer complaints than other providers, making it a smart option if you want a good customer service experience.
Standout benefits:Erie's Rate Lock®feature means that, as long as you keep your policy the same, your premiums won't increase — even if you file a claim.
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Best for families
State Farm Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
One of the largest auto insurers in the U.S., State Farm has an excellent reputation for customer satisfaction and offers over a dozen discounts, including for safe driving, bundling and good students.
Terms apply.
Read our State Farm auto insurance review.
Pros
- High customer satisfaction
- Largest car insurance company in the U.S.
- Accident forgiveness
Cons
- High volume of complaints
- Doesn’t offer gap insurance
- Premiums higher than average
Who's this for?State Farm offers several benefits for families, including a discount of up to 25% for students with good grades and a multi-vehicle discount worth up to 20% if you put two or more cars on one policy.
Standout benefits:Drivers who bundle State Farm auto insurance with a homeowners or renters policy can save as much as $1,200 a year.
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Best for discounts
Progressive Auto Insurance
Cost
The best way to estimate your costs is to request a quote.
App available
Yes
Policy highlights
Progressive offers a number of lines of insurance to allow for bundling, and convenient tools to help you keep your coverage in your budget.
Terms apply.
Read our Progressive Auto Insurance review.
Pros
- Available in all 50 states
- Low rates for drivers with DUIs
- Offers non-owner car insurance and SR-22 filings
- Offers vanishing deductible as well as accident forgiveness
Cons
- Below-average customer satisfaction ratings from J.D. Power
- Above-average number of complaints
- Snapshot safe-driving discount program could result in rates going up
Who's this for? Progressive has more than a dozen discounts to lower your rates, including ones for being a homeowner and for paying your annual premium upfront.
Standout benefits:Progressive automatically forgives your first claim for less than $500, which can keep your rates down. After five years with no at-fault accidents, even larger claims won't raise your rates. If you purchase an optional add-on, you can have one additional accident forgiven per policy period.
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Best for a bad driving record
Auto-Owners Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Auto-Owners offers affordable premiums with high customer satisfaction ratings. There are 12 different types of discounts available, as well as various other types of insurance besides auto.
Terms apply.
Pros
- Offers at-fault accident forgiveness as an add-on
- High customer satisfaction scores from J.D. Power
- Low NAIC complaint index score
Cons
- Only available in 26 states
- Quotes must be obtained through an agent
- Claims must be filed through 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 has three discounts aimed at young drivers, including a good student discount worth up to 20% off if they maintain at least a B average.
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Best for bad credit
Travelers Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Travelers auto insurance policies are affordable and backed by the sixth largest company for car insurance by market share according to the NAIC. The company also offers a number of discounts to customers, including discounts for bundling, owning a hybrid or electric car, and good student discounts.
Pros
- Sixth largest auto insurer in the U.S. by market share
- Many discounts available
- Low average prices compared to other companies we reviewed
Cons
- Not all discounts available in every state
- Not available in all states
- Below average J.D. Power customer satisfaction score
Who's this for?Travelers had the lowest rates of the companies we reviewed for drivers with bad credit.
Standout benefits:You can save up to 30% on your annual premium if you allow Travelers' IntelliDrive app to monitor your driving habits.
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Best formilitary members and veterans
USAA Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
USAA auto insurance is available to service members, veterans and their families in all 50 states and Washington D.C.. In addition to low rates, USAA offers discounts if you are deployed or store your vehicle on base.
Terms apply.
Read our USAA auto insurance review
Pros
- Cheapest insurer for liability-only coverage
- Stellar customer satisfaction scores
- Track record of financial strength
- Available in all 50 states
Cons
- Limited to military families and veterans
- No brick-and-mortar offices
- Customer service is not available 24/7
- Safe-driver discount not available in every state
Who's this for? USAA has outstanding coverage for current and former service members and their immediate families and is available in all 50 states.
Standout benefits: USAA's discounts target military families, including rate reductions when you're deployed or store your vehicle on base.
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Find the right car insurance
More on our top liability-only auto insurance companies
Erie
Erie has been insuring Americans since 1925. While it isn't available in every state, it's earned the top spot in J.D. Power's 2024 auto insurance study in two regions every year since 2022.
Availability
Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin and Washington, D.C.
A.M. Best financial strength rating
A+ (Superior)
NAIC complaint index
0.81, below average
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State Farm
State Farm is the largest auto insurance company in the U.S. and is available in all states except Massachusetts and Rhode Island. It earns high marks for claims and overall customer satisfaction from JD Power and you can file claims, access ID cards and get roadside assistance on the State Farm mobile app.
Availability
Nationwide except in Massachusetts and Rhode Island.
A.M. Best financial strength rating
A++ (Superior)
NAIC complaint index
0.78, below average
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Progressive
Progressive issues auto insurance in all 50 states, making it a winner for availability. Its safe-driving app, Snapshot, can save youan average of $231 a year on your premium based on your driving habits.
Availability
Nationwide except in Massachusetts and Rhode Island.
A.M. Best financial strength rating
A++ (Superior)
NAIC complaint index
0.78, below average
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Auto-Owners
In the insurance business since 1916, Auto-Owners has benefits some competitors lack, including accident forgiveness and gap insurance. The combination of low rates, superior customer service and robust coverage made us crown Auto-Owners one of the best overall auto insurance companies.
Availability
26 states
A.M. Best financial strength rating
A++ (Superior)
NAIC complaint index
0.91, close to average
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Travelers
Travelers offers a variety of discounts, including several for safe drivers and students. It also has uncommon benefits like new car replacement coverage and accident and minor violation forgiveness.
Availability
43 states
A.M. Best financial strength rating
A++ (Superior)
NAIC complaint index
0.70, below average
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USAA
USAA regularly receives high customer satisfaction scores from JD Power and the Better Business Bureau gave it its highest rating. Founded in 1922, USAA also offers homeowners, renters, life and pet insurance to eligible military families.
Availability
Nationwide
A.M. Best financial strength rating
A++(Superior)
NAIC complaint index
1.35, above average
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What Is liability car insurance?
Liability car insurancepays for damages to another vehicle or person if you're found responsible for an accident. All states but Virginia and New Hampshirerequire motorists to at least have liability insurance to be on the road.
What liability insurance covers and how much you need
There are two components to liability insurance.
- Bodily injury liability:Covers medical bills, lost wages, compensation for pain and suffering and even funeral costs for another person. It can also pay legal fees if you are sued after an accident.
- Property damage liability:Covers damage to someone else's car or other property, like a mailbox or porch.
Your state will have specific coverage requirements for both: In New York, for example, the minimum is $25,000 in bodily injury coverage per person, $50,000 in bodily injury coverage per accident and $10,000 in property damage coverage.
Liability insurance won't pay for repairs to your vehicle or injuries suffered by someone in your car. You'll need collision insuranceto cover damages and medical payments coverage(MedPay) or personal injury protection (PIP) to cover medical bills.
FAQs
What company has the cheapest liability-only car insurance?
Rate for liability insurance vary depending on where you live, your driving history, credit and other factors. Our analysis found that Erie, State Farm, Progressive, Auto-Owners, Travelers and USAA have some of the lowest average rates for this kind of coverage
Is it smart to only have liability insurance?
Whether you just need liability-only car insurance 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 an annual premium, it might not be worth paying for comprehensive and collision coverage. If you expect to get many more years out of your car, liability coverage may not be enough.
How much does liability-only car insurance cost?
Costs vary by state and by driver but, in July 2023, the average cost of liability-only car insurance was around $630 a year.
What is no-fault insurance?
No-fault car insurance can cover your losses, including medical expenses and lost wages, regardless of who's at fault in an accident. Also called 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. See our methodology for more information on how we choose the best insurance companies.
Our methodology
To determine the best insurance companies, CNBC Select analyzed dozens of insurance companies that offer minimum coverage and compared them based on various factors.
While narrowing down the best insurance companies, we focused on a sample premium forminimum coverage data from Bankrate. The minimum coverage calculated met each state's requirements for a 40-year-old driver with a clean driving record and good credit driving a 2022 Toyota Camry 12,000 miles annually. We also considered each company's coverage options, discounts, availability, ease of use and customer satisfaction using data from theNational Association of Insurance CommissionersandA.M. Best and customer satisfaction rankings averaged from 11 regions fromJ.D. Power's auto insurance survey
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
From there, we sorted our recommendations by the best for customer service, families, discounts, bad driving records, bad credit and for military members and veterans.
Premiums and policy structures advertised for auto insurance companies are subject to change in accordance with company policies.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
