Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Dec 1, 2021

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The Lowdown

  • Liability auto insurance is required for most drivers in the United States
  • On average, liability auto insurance is $48 a month
  • Raising your coverage level increases your auto insurance rates

Do you want to shop with the best companies for liability car insurance? You can get affordable liability auto insurance by comparing the best insurance companies in the nation.

But which companies are best for liability car insurance?

What are the ten best insurance companies in the United States? Don’t worry — we’re here to help.

Read our guide to learn about the top 10 auto insurance companies in the USA. Learn how much they charge for liability auto insurance. We’ll also explain how you can get the cheapest car insurance policy money can buy.

After you learn about the best companies for liability auto insurance, enter your ZIP code in the free online quote tool above to compare multiple insurance companies near you.

What are the best companies for liability auto insurance?

The top insurance companies in the USA are measured by how much they earn per year. This is how the car insurance industry determines which company is the best.

Here’s a breakdown of the best auto insurance companies in the nation.

Top 10 U.S. Auto Insurance Companies by Market Share and A.M. Best Ratings
RankCompaniesDirect Premiums WrittenLoss RatiosMarket SharesA.M. Best Ratings
1State Farm$41,963,578,0006317.01A++ (Superior)
2GEICO$33,075,434,0007113.41A++ (Superior)
3Progressive$27,058,768,0006210.97A+ (Superior)
4Allstate$22,663,214,000569.19A+ (Superior)
5USAA$14,467,936,000775.87A++ (Superior)
6Liberty Mutual$11,776,654,000624.77A (Excellent)
7Farmers$10,496,476,000614.26A (Excellent)
8Nationwide$6,726,799,000582.73A+ (Superior)
9Travelers$4,697,743,000601.9A++ (Superior)
10American Family$4,687,909,000691.9A (Excellent)
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State Farm, GEICO, and Progressive are the top earners in the United States. These companies show financial stability, and they all have A.M. Best ratings of A or better.

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How much is liability auto insurance at the best companies?

According to the National Association of Insurance Commissioners (NAIC), liability-only car insurance is $48 per month. However, your rates vary when you get liability car insurance quotes from different companies.

In 2022, expect liability insurance rates to be 53% cheaper than full coverage on average.

Let’s look at the average monthly liability auto insurance rates from various companies to see which company has the cheapest car insurance.

Average Monthly Liability Auto Insurance Rates based on State Minimum Requirements
CompaniesMonthly Liability Auto Insurance Rates
Allstate$67
Farmers$52
GEICO$40
Liberty Mutual$53
Nationwide$59
Progressive$57
State Farm$44
USAA$33
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GEICO, State Farm, and USAA have the cheapest auto insurance rates for liability insurance. However, car insurance rates vary by state and other personal factors.

Does liability auto insurance vary by state?

Yes, it does. Where you live determines the cost of liability car insurance.

States with higher populations and more urban areas have expensive rates, but states with lower populations and more rural areas have more affordable rates.

Let’s examine how liability auto insurance varies by state.

Average Monthly Liability Auto Insurance Rates by State
StatesAverage Monthly Liability Rates
**Countrywide**$48
Alabama$37
Alaska$47
Arizona$48
Arkansas$36
California$45
Colorado$49
Connecticut$59
Delaware$69
District of Columbia$58
Florida$76
Georgia$55
Hawaii$39
Idaho$32
Illinois$40
Indiana$34
Iowa$27
Kansas$32
Kentucky$47
Louisiana$73
Maine$30
Maryland$55
Massachusetts$52
Michigan$72
Minnesota$39
Mississippi$41
Missouri$38
Montana$34
Nebraska$33
Nevada$64
New Hampshire$35
New Jersey$76
New Mexico$44
New York$71
North Carolina$31
North Dakota$25
Ohio$35
Oklahoma$40
Oregon$53
Pennsylvania$43
Rhode Island$68
South Carolina$50
South Dakota$26
Tennessee$37
Texas$49
Utah$45
Vermont$30
Virginia$38
Washington$53
West Virginia$43
Wisconsin$33
Wyoming$29
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Iowa, North Dakota, and South Dakota are the cheapest states for liability car insurance. Meanwhile, the most expensive states are Louisiana, Florida, and New Jersey.

Additionally, your car insurance rates may be higher in some cases due to non-geographical factors. Other personal factors can affect your auto insurance rate.

How does your driving record affect liability auto insurance?

Your driving record is one of the most significant factors when determining car insurance costs. Speeding infractions, accidents, and DUI convictions have an impact on your driving history and monthly auto insurance rates.

Let’s review liability car insurance rates based on different traffic violations and accidents.

Average Monthly Liability Auto Insurance Rates based on Driving History
CompaniesMonthly Rates with a Clean Driving RecordMonthly Rates w/ One Speeding ViolationMonthly Rates w/ One AccidentMonthly Rates w/ One DUI Conviction
Allstate$169$198$220$277
American Family$119$134$164$191
Farmers$153$180$200$208
GEICO$95$117$141$215
Liberty Mutual$211$252$274$336
Nationwide$121$138$150$201
Progressive$150$177$211$175
State Farm$125$141$150$161
Travelers$152$188$189$254
USAA$85$97$111$155
National Average$73$86$96$115
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USAA, GEICO, and American Family are the most affordable auto insurance companies for liability insurance. However, USAA car insurance is only available to military veterans and their immediate families.

DUIs can increase your liability insurance rates by 37%. By contrast, accidents drive up rates by 24%.

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Can my credit history affect liability auto insurance quotes?

Your credit history is another major factor when determining car insurance. But why does credit impact auto insurance? According to credit agencies and insurance companies, credit correlates to the risk of filing claims.

The better your credit, the less likely you are to file a claim. Meanwhile, bad and fair credit scores produce more expensive rates. Check out the monthly car insurance rates below to see how credit affects liability insurance.

Average Monthly Liability Auto Insurance Rates by Credit History
CompaniesMonthly Rates based on Good Credit History (670-739)Monthly Rates based on Fair Credit History (580-669)Monthly Rates based on Bad Credit History (300-579)
Allstate$170$202$287
American Family$119$140$197
Farmers$162$172$215
GEICO$108$132$188
Liberty Mutual$194$248$389
Nationwide$129$144$180
Progressive$160$175$209
State Farm$96$126$219
Travelers$179$192$228
USAA$80$98$163
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Good credit auto insurance provides the cheapest liability insurance rates. Likewise, bad credit car insurance generates the most expensive rates. Keep your insurance company informed about any positive changes in your credit score to save money.

How does coverage level affect liability auto insurance rates?

The minimum auto insurance requirements vary by state. For example, the minimum coverage limits for some states are:

  • $25,000 for bodily injury of one person per accident
  • $50,000 for bodily injury of multiple people per accident
  • $25,000 for property damage per accident

Coverage limits are often abbreviated, such as 25/50/25. Some states carry lower coverage limits. However, it is recommended that you choose higher coverage limits, such as 50/100/50 or 100/300/100.

Let’s see how different coverage levels impact liability auto insurance.

Average Monthly Liability Auto Insurance Rates by Company and Coverage Level
CompaniesState Minimum Liability Rates50/100/50 BI-PD Liability Rates100/300/100 BI-PD Liability Rates
Allstate$67$76$84
Farmers$52$60$67
GEICO$40$49$57
Liberty Mutual$53$59$67
Nationwide$59$61$69
Progressive$57$64$73
State Farm$44$52$59
USAA$33$37$42
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Clearly, your car insurance rates increase when you raise your coverage level. However, the increase from each coverage level isn’t as expensive.

Consider other factors that affect auto insurance. Your liability-only insurance rates may go up when you add other factors.

What are the top auto insurance discounts for liability insurance?

The best way to buy cheap car insurance is to qualify for discounts. Each auto insurance company provides different values for the same discount.

Here’s a look at the best deals you can receive from car insurance companies.

  • Safe driver discount
  • Good credit discount
  • Multi-policy discount
  • Low-mileage discount
  • Safety features discount
  • New vehicle discount
  • Multi-vehicle discount
  • Usage-based insurance discount
  • Good student discount

You can save up to 40% if you’re eligible for safe driver and good credit discounts. Drive your vehicle less, and you can get a low-mileage discount.

Consequently, when you do drive, consider a usage-based insurance program. Some insurance companies can provide up to 30% off if you have good driving habits.

Liability auto insurance doesn’t carry deductibles like collision and comprehensive coverage. If you decide to add collision or comprehensive coverage, raise your deductible to save money on auto insurance per month.

Can I bundle liability auto insurance with home insurance?

The best insurance companies for home and auto allow you to bundle insurance policies. If you bundle car and homeowners insurance, you can save at least 10% on insurance.

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Should you trust auto insurance consumer reports?

Largely, it depends where you find the reports. We recommend that you look at J.D. Power’s customer reviews to get the best car insurance consumer reports.

Here’s a breakdown of the best insurance companies’ consumer reports from J.D. Power.

J.D. Power Ratings of the Top 10 Auto Insurance Companies in the United States
Insurance CompanyOverall Satisfaction with Shopping Experience
(J.D. Power Rating)
Overall Satisfaction with Claims Process
(J.D. Power Rating)
Complaint Ratio
Lower or Higher than National Average (1.15)
Allstate3 Power Circles
(about average)
3 Power Circles
(about average)
0.64
(Lower)
American Family4 Power Circles
(better than most)
3 Power Circles
(about average)
0.70
(Lower)
Farmers3 Power Circles
(about average)
4 Power Circles
(better than most)
0.97
(Lower)
GEICO3 Power Circles
(about average)
3 Power Circles
(about average)
0.92
(Lower)
Liberty Mutual3 Power Circles
(about average)
2 Power Circles
(the rest)
6.32
(Higher)
Nationwide2 Power Circles
(the rest)
3 Power Circles
(about average)
0.36
(Lower)
Progressive3 Power Circles
(about average)
3 Power Circles
(about average)
0.89
(Lower)
State Farm3 Power Circles
(about average)
3 Power Circles
(about average)
0.57
(Lower)
Travelers3 Power Circles
(about average)
3 Power Circles
(about average)
1.27
(Higher)
USAA
(Military &
Family Members)
4 Power Circles
(better than most)
5 Power Circles
(among the best)
1.14
(Lower)
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USAA is the only company with near-perfect scores. Meanwhile, most car insurance companies have average J.D. Power ratings.

Regardless of the J.D. Power scores, each company has an excellent ability to pay out claims and keep customers satisfied.

Best Companies for Liability Auto Insurance: The Bottom Line

The best company for liability auto insurance isn’t always the cheapest company. It’s essential to check the company’s financial strength and customer review ratings.

We recommend increasing your coverage level to 50/100/50 to ensure you have enough on your bodily injury and property damage coverage limits.

Now that you know more about the best companies for liability auto insurance, use our free online quote tool to compare multiple insurance companies in your area.