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The cheapest liability car insurance costs about $28 per month. USAA, Auto Owners and Erie tend to offer the most affordable average rates
Car Liability Insurance
Written by: Daniel Robinson, Written by: Daniel Robinson Author Daniel is the Group Editor of Guides and has written for numerous motoring news sites and marketing agencies across the US, UK and Australia, specializing in car finance and car maintenance topics. Daniel is the group’s authority on car insurance, loans, warranty options, car services and more.
Liability Car Insurance 101: How It Works, How Much You Need, Definitions, And More
Edited by: Rashawn Mitchner Edited by: Rashawn Mitchner Managing Editor Rashawn Mitchner is a Guide team editor with more than 10 years of experience covering personal finance and insurance topics.
A single liability car insurance policy is the lowest coverage you can buy. However, it usually provides the minimum coverage required by state law. In this article, we at The Guides Group will show you which major providers generally offer the lowest liability car insurance coverage. We’ll also examine the average liability insurance cost by state and how liability coverage compares to full coverage.
If you are looking for cheap car insurance, we recommend getting quotes from the best car insurance companies in the industry. It helps to compare car insurance quotes to find the best possible rates.
Cheapest Car Insurance Liability Car Insurance Vs. Full coverage car insurance How much car insurance do I need?
Wait. What? A Person Can Have Car Insurance Without Any Liability Coverage?
The Guides Group is committed to providing reliable information to help you make the best possible decision about your car insurance. Because customers rely on us to provide accurate and precise information, we have created a comprehensive rating system to develop our ranking of the best car insurance companies. We collect data on dozens of auto insurance providers to rank companies according to a variety of ranking factors. After 800 hours of research, the final result is an overall rating for each provider, with the insurers that received the most points at the top of the list.
If you want cheap auto insurance, you may want to consider purchasing liability coverage that meets your state’s minimum auto insurance requirements.
We researched the cheapest auto insurance companies and the states that tend to have the most affordable liability insurance. The statistics in the sections below are based on 35 married drivers with good credit and a clean driving record.
Based on our research, USAA typically offers the cheapest liability coverage on average, at $28 per month or $333 per year. The next cheapest car insurance policy comes from Auto Owners Insurance, which costs an average of $29 per month or $349 per year.
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According to our estimates, Vermont is the state with the cheapest liability insurance. The average cost of a liability policy in Green Mountain State is about $23 per month or $282 per year. Michigan has the most expensive liability insurance, with rates tending to average $133 per month or $1,604 per year.
Liability car insurance covers the cost of property damage and personal injuries to the other party if you are found to be at fault in a car accident. Your insurance provider pays the cost of repairs to the other person’s vehicle or the cost of medical bills if the other person is injured.
Each state sets a legally required minimum coverage, which includes some form of liability insurance. Virginia and New Hampshire are the only exceptions, as neither state requires drivers to have any auto insurance.
The coverage amounts for liability insurance are indicated by three figures. Each number represents one of the following types of liability coverage:
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An example liability insurance policy might be 25/50/25, which would mean you would have $25,000 in personal injury liability coverage, $50,000 in personal injury liability coverage for an accident, and $25,000 in property damage liability coverage for accidents.
Liability car insurance does not cover damage to your vehicle or costs related to your injuries. Accident insurance covers the cost of repairs to your car. Medical payments insurance (MedPay) or personal injury protection (PIP insurance) covers your medical bills.
If you don’t think you are at fault for the accident, you and your insurance company will not be responsible for property damage or the other party’s injuries.
If you have a car loan or lease, you may need to maintain full car insurance. With this in mind, you should only consider liability car insurance if you own your vehicle outright.
Does Car Insurance Cover The Car Or The Driver?
You should also remember that comprehensive and collision coverage are the best deals when your car is new. As your husband gets older, the maximum payout you can receive for a claim decreases. Once your car gets 10 to 12 years old and sees its total value drop below $10,000, it’s hard to call full auto insurance a good deal.
A comprehensive coverage policy typically includes state-required liability limits such as collision coverage and comprehensive coverage. Some comprehensive policies may also include uninsured motorist (UM) coverage, as some states require it.
Liability-only car insurance often has the cheapest rates in the industry – even on full coverage. This is because liability insurance does not offer many types of protection. Here’s a look at how the annual totals compare for both types of coverage:
As you can see, it is not uncommon for liability-only car insurance to cost 60% less than a full coverage policy. Again, it’s a matter of getting what you pay for, as a comprehensive car insurance policy offers more protection than just liability insurance.
Liability Car Insurance: Cost And Coverage (2023)
When evaluating car insurance quotes, insurance companies look at several factors to calculate what you will pay.
To find more affordable car insurance, you can work to increase your credit score and avoid traffic violations. We also recommend that you ask your provider about any car insurance discounts that are available. Some providers offer discounts to good drivers or to policyholders who combine their auto insurance with homeowners or renters insurance. Discounts for good students and members of various professional organizations are also common.
Minimum liability auto insurance is usually the minimum level of coverage your state requires for you to legally drive. Each state sets its own requirements, so the cost of liability insurance varies from state to state.
If you are considering purchasing a single car insurance policy, we recommend checking out the policies offered by USAA and Erie Insurance.
Best Types Of Auto Insurance Coverage Guide For 2021
From researching the top insurance companies in the country, we found that USAA often offers some of the lowest auto insurance rates available. In addition to having the cheapest liability coverage on average, USAA offers several coverage options that include accident waivers and classic car insurance.
USAA also has an A++ rating from AM Best, reflecting its financial strength and credibility as a business. Remember that USAA coverage is only available to active duty members of the military, veterans and their family members.
If you live in Washington, D.C., or any of the 12 states that Erie serves, you may be the right choice for cheap auto insurance. The company is known for its affordable rates, charging an average of 28% less for both liability coverage and full coverage than the national average.
In addition to inexpensive liability coverage, Erie offers a list of comprehensive coverage options and many additional options. The supplier has good financial strength, according to AM Best, which suggests that it will be possible to pay the claims.
What Is Auto Liability Insurance And What Does It Cover?
In most states, you need at least $50,000 in accidental bodily injury liability coverage ($25,000 per person) and $25,000 in property damage coverage. Some states also require uninsured motorist coverage with either personal injury coverage or medical payments coverage.
The lowest amount you can pay for car insurance is usually the cost of your state’s minimum liability coverage, which depends on factors such as the vehicle and its location. Based on our research, USAA has the lowest liability car insurance on average at $28 per month or $333 per year. Vermont has the lowest total liability insurance rates in the US at $24 per month or $282 per year.
Liability insurance is generally the cheapest auto insurance coverage because it covers the cost of bodily injury and property damage to the other party if you are at fault in an accident. It does not cover damage to your vehicle or costs associated with your injuries.
Driving without insurance is illegal in every state except Virginia and New Hampshire. Penalties for driving without insurance vary by state.
How An Umbrella Insurance Policy Works
USAA is generally the cheapest insurance company for minimum liability auto insurance, with an average rate of $28 per month or $333 per year for married drivers age 35 with good credit and a clean driving record. Auto Owners Insurance is behind USAA, with an average of $29 per month or $349 per year for liability coverage.
Because customers rely on us to provide accurate and precise information, we have created a comprehensive rating system to develop our ranking of the best car insurance companies. We collect data on dozens of car insurance providers
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