Liability-Only Car Insurance: Affordable Coverage for Older Vehicles

Liability-only car insurance is an affordable option for drivers of older vehicles or those on a tight budget. This coverage meets state minimum requirements, protecting you from financial liability for damages or injuries you cause in an at-fault accident. Starting at around $20 per month for safe drivers, it’s a cost-effective way to stay legal on the road. Explore affordable car insurance options to find the best rates.

Why Choose Liability-Only Insurance?

Liability-only insurance is ideal for drivers who want to minimize costs while meeting legal requirements. Unlike comprehensive or collision coverage, it only covers damages or injuries you cause to others, not repairs to your own vehicle. This makes it perfect for older cars with low market value, where full coverage may not be cost-effective. However, insufficient coverage could leave you vulnerable to lawsuits if damages exceed policy limits. Compare quotes using online quote tools to find the cheapest plans.

State Requirements for Liability Coverage

Every U.S. state except New Hampshire mandates minimum liability insurance for drivers. This ensures you can cover losses you cause to others, such as property damage or medical expenses. Requirements vary by state, so check your local regulations at state-specific insurance guides to ensure compliance.

Best for Older Vehicles

For vehicles over 10 years old or with low market value, liability-only insurance is often the best choice. If repair costs exceed your car’s worth, comprehensive coverage may not pay out, wasting your premiums. Liability coverage is also suitable for secondary vehicles, like trucks or vans, that are rarely driven. Learn more about insuring older cars for cost-saving tips.

What Does Liability-Only Insurance Cover?

Liability-only insurance includes two key components:

• Bodily Injury Liability (BI): Covers medical expenses, lost wages, and legal fees for injuries you cause to others in an at-fault accident, up to the policy’s limits.
• Property Damage Liability (PD): Pays for repairs to another person’s property, such as vehicles or structures, damaged in an accident you caused.

For a detailed breakdown, explore types of car insurance coverage.

What’s Not Covered?

Liability-only insurance does not cover:

• Damage to your vehicle
• Theft or vandalism
• Medical expenses for you or your passengers

For broader protection, consider adding other coverage types where required or affordable.

Additional State-Mandated Coverages

Some states require more than liability coverage, such as:

• Personal Injury Protection (PIP): Covers medical expenses, funeral costs, or lost wages for you, your passengers, or pedestrians, regardless of fault. Mandatory in states like Florida. See PIP insurance details.
• Uninsured Motorist Coverage (UM): Protects you if an at-fault driver lacks insurance or sufficient coverage. It can cover your medical bills or property damage, starting at just $8 per month in some cases.

Check state-specific requirements with resources like California’s minimum insurance guide.

How Much Does Liability-Only Insurance Cost?

Liability-only insurance is typically the cheapest option, with rates starting at $20 per month for drivers with clean records. Costs vary based on age, location, driving history, and vehicle type. High-risk drivers may pay more. The table below shows average annual costs for liability-only policies:

For high-risk drivers, explore no-credit-check insurance options to find affordable rates.

When to Choose Liability-Only Insurance?

Consider liability-only insurance if you:

• Drive an older vehicle with low market value
• Have a secondary vehicle used infrequently
• Need to meet state minimum requirements on a budget
• Want to avoid high premiums for comprehensive coverage

For additional savings, check out cheap insurance for older vehicles.

How to Find Cheap Liability-Only Insurance

To get the best rates, compare quotes from multiple insurers online. Platforms like Goodtogoinsurance allow you to review up to 10 quotes in under 5 minutes. Look for providers offering discounts or flexible payment plans, such as no-deposit insurance, to reduce upfront costs.

Frequently Asked Questions

What is liability-only car insurance?

Liability-only insurance covers damages or injuries you cause to others in an at-fault accident, meeting state minimum requirements but not covering your vehicle or injuries.

Who should get liability-only insurance?

It’s ideal for drivers of older cars, those on a tight budget, or owners of rarely used secondary vehicles who need affordable, legal coverage.

Does liability-only insurance cover my car if it’s stolen?

No, liability-only policies do not cover theft, vandalism, or damage to your vehicle. Consider comprehensive coverage for these risks.

How can I find cheap liability-only insurance?

Compare quotes online using platforms like insurance comparison tools to find the lowest rates in minutes.