The Best Companies for Liability Car Insurance
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All states except for New Hampshire and Virginia require you to carry liability car insurance to legally get behind the wheel. But with so many choices and car insurance companies out there, picking the right option isn’t exactly easy.
If you’re shopping for the best liability car insurance and aren’t sure where to start, discover some of the top companies known for the best auto insurance rates and coverage options on the market.
Find the Best Liability Auto Insurance
Find the Best Liability Auto Insurance
What Is Liability Car Insurance?
Liability car insurance is a basic insurance policy that protects motorists who are not at fault in a car accident. For example, liability insurance would pay for the other person’s medical bills and property damage if you were the guilty party in an at-fault car accident and vice versa. Liability insurance is also the state minimum amount of insurance required to legally drive a car.
However, liability coverage isn’t a blanket policy. It’s broken up into several different types of auto insurance, including:
- Bodily injury liability coverage
- Property damage liability coverage
- Underinsured and uninsured motorist coverage
Property damage and bodily injury are both included in a liability-only car insurance policy, but underinsured and uninsured motorist coverage is not.
Beyond minimum liability coverage, some states have additional coverage requirements. Maine requires MedPay (medical payments) insurance, while 11 no-fault states require you to carry personal injury protection (PIP) coverage. Neither of these coverage types is considered liability insurance, but they are nonetheless required by these states to cover your own medical expenses in case of a car accident.
What Limits Do I Need?
You’ll see liability limits quoted in sets of three numbers, such as 100/300/100. This stands for:
- $100,000 bodily injury limit per person
- $300,000 total bodily injury limit for all parties
- $100,000 for property damages
The higher the coverage limits, the higher the average rate for your auto insurance policy. However, higher limits can also prevent you from paying out of pocket or being taken to court for not having enough car insurance coverage.
A Quick Note About Full Coverage Car Insurance Policies
If you take out a car loan to purchase a vehicle, your lender will require full coverage car insurance. Keep in mind that full coverage includes liability coverage as well as collision coverage (pays for repairs in a car accident regardless of fault) and comprehensive coverage (pays for the cost of replacing or repairing your car in cases of theft, vandalism, or acts of God), so you don’t need to buy additional liability coverage.
Best Liability Car Insurance for Young Drivers: State Farm
State Farm tops the list as the best liability car insurance for young drivers. Not only does State Farm have some of the lowest insurance costs for teen drivers, college students, and other less experienced motorists, but it also has discounts and apps that tech-savvy youngsters may find useful to help them save money.
The State Farm Steer Clear telematics program measures a teen’s driving in real-time, gives them data about their driving, and offers tips so they can improve. With this program, young drivers can save up to 20% on their auto insurance coverage.
State Farm also offers other types of car insurance policy discounts relevant to young drivers, including:
- Good student discount (3.0/”B” average or higher)
- Drive safe and save discount (accident-free for three years)
- Student away at school discount
- Driver training discount
- Accident forgiveness
Parents will also love State Farm if they’re currently paying for their child’s auto insurance, as the company offers multi-car and bundling discounts for homeowners.
Best Liability Car Insurance for Seniors: GEICO
As you age, your car insurance requirements change over time, although everyone is different. You may treat yourself to a new car or you may just stick with an old beater because you’re driving less. Either way, the best option for many seniors is GEICO.
Offering the lowest insurance rates for drivers between the ages of 65 and 85, GEICO can slash your liability auto insurance rates while still keeping you legal per state law.
Accident forgiveness is one of the top features of a GEICO insurance policy, while quick claim processes, responsive insurance agents, and quality customer service give you results and answers when you need them most.
However, GEICO doesn’t offer gap insurance, which some retirees or seniors may find off-putting if they decide to buy a new car.
Best Liability Car Insurance for SR-22 Drivers: Dairyland
If you’ve had a DUI, have a questionable driving history, or need to file an SR-22 form to get behind the wheel, Dairyland Auto Insurance consistently ranks as one of the best insurance companies for liability-only, high-risk insurance coverage.
Since 1953, Dairyland is an insurance company that has worked specifically with high-risk drivers and those without clean driving records, as well as people with poor credit scores. If you need an SR-22, Dairyland will offer you lower insurance rates than many competitors while also filing all the paperwork on your behalf.
The only downside is that Dairyland gets an inordinate amount of complaints, but if you drive safely, don’t need to file claims, and don’t find customer service all that important compared to low insurance rates, it’s a sound choice.
Best Liability Car Insurance for Commuters: Nationwide
If you have a great commuter car that you use solely for getting to and from work, you may not want to spend as much on auto insurance as for a car that you drive for pleasure. And that’s perfectly fine.
However, since you’re behind the wheel every workday, you want to make sure you’ve got the minimum coverage required by state law. That’s what makes Nationwide a great choice for the best liability car insurance for commuters.
With an A+ rating from the Better Business Bureau and decent customer satisfaction rankings from J.D. Power, it’s a reputable insurance company. Plus, it offers a pay-per-mile SmartMiles program that may save you money regardless of your commuting distance.
Best Liability Car Insurance for Bargain Hunters: Erie Insurance
If you’re a thrifty person with an impeccable driving record, Erie Insurance is the cheapest insurance company for your driving needs. Well below the national average in terms of liability-only annual rates, the Pennsylvania-based company touts its low insurance costs, 90% policyholder retention rate, and the ability to lock in your low rate as its greatest perks.
However, take note that Erie is a regional insurance company and is only available in 12 states. Before you get excited about the prospect of paying bottom dollar for the best liability car insurance policy, make sure it’s available in your area.
Best Liability Car Insurance for Military Members: Esurance
Many military members choose military-only insurers like AFI simply because it’s easy and promises a lower insurance rate for minimum coverage. However, you may find that Esurance actually gives you better liability coverage rates than insurers that only work with veterans and active-duty personnel.
Interestingly, Esurance doesn’t offer any military discounts, but it offers a perk to members of the military that few others do: If you’re sent overseas or stationed in a different city, Esurance allows you to cancel your insurance policy free of charge. When you return, Esurance provides you with the same insurance rate you had when you left.
This is particularly important because most insurance companies use a methodology that increases your rate if you have a lapse in insurance coverage. With Esurance, you can go anywhere in the world and get a bit of solace from knowing that you’ll have the same car insurance rate when you return.
Shop Quotes to Get the Best Liability Car Insurance Rates
The insurance companies above earned their accolades for a reason, but don’t let that deter you from shopping around on your own for cheap car insurance rates. In almost all cases, comparing car insurance policy quotes from numerous auto insurance companies can yield the lowest rate. Compare.com just makes it a bit easier than the rest.
Pop in your ZIP code below to get one step closer to finding the best liability car insurance rates and staying legal when you’re on the road.
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