The element of a car insurance policy that offers financial protection for a driver who injures someone else or their property while operating a vehicle is liability car insurance.
Car liability insurance only covers injuries or property damage to third parties, not the driver or the driver’s property, which may be covered separately by other portions of their policy.
Bodily injury liability and property damage liability are the two parts of liability car insurance. Except for New Hampshire, every state requires drivers to have some form of liability insurance.
Liability auto insurance assists in covering the cost of damage caused by an automobile collision.
In many areas, if a motorist is determined to be at fault in an accident, their insurance company will cover the damage and medical expenditures of any other parties involved up to the policy limits.
Drivers in states with no-fault auto insurance, on the other hand, must make a claim with their own insurance company first, regardless of who was at fault.
In certain states, drivers are often obliged to acquire personal injury protection (PIP) coverage, which covers both their own and their passengers’ accident-related medical bills. Below is the list of the 10 cheapest liability only car insurance
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10 Cheapest liability Only-Car insurance
#1. USAA – $459
#2. Auto-Owners Insurance – $750
#3. GEICO – $762
#4. Nationwide – $834
#5. State Farm – $802
#6. Allstate – $887
#7. Progressive – $956
#8. Farmers – $1,123
#9. Travellers- $1,078
#10. MetLife – $1,168
#1. USAA:
J.D. Power consistently ranks USAA as one of the best vehicle insurance carriers in terms of customer happiness and value.
The organization is well-known for its excellent customer reviews and low-cost coverage options, which include accident forgiveness. However, due to its stringent eligibility conditions, it does not rank first on our list.
Only service personnel, veterans, and their families are eligible for USAA auto insurance, which severely limits who can get coverage. A USAA insurance coverage is one of the greatest solutions available if you are eligible.
AM Best gave USAA an A++ financial strength grade, and the Better Business Bureau gave it an A+ (BBB).
According to the NAIC, vehicle insurers held 6.32 percent of the market share in 2020. Despite not being the largest auto insurer, USAA maintains a solid financial standing.
The company is expected to write $15.77 billion in private passenger auto insurance premiums in 2020.
Despite the fact that USAA does not have many physical facilities, policyholders praise the company’s customer service.
In the 2021 J.D. Power Auto Insurance Study, USAA received the highest score in every U.S. region, though it was not ranked due to its eligibility criteria.
#2. AutoOwner Insurance:
This is a big positive for people who seek close contact with an insurance agent: If you ever have a question about your policy or need to file a claim, the person on the other end of the telephone will be familiar with your name and policy details.
And this framework translates to excellent customer service. The firm consistently ranks first in claims service and consumer interaction.
Furthermore, Auto-Owners’ rates are very competitive. When working with an insurance agent, a typical issue is the likelihood of excessive rates because there is a middleman to pay.
However, Auto-Owners’ rates were competitive with those offered by other auto insurance firms, so this shouldn’t be a problem for prospective clients.
#3. GEICO:
AM Best gave Geico an A++ (Superior) rating, indicating that the company has the financial resources to pay consumers’ insurance claims.
In comparison to a smaller, local company, a larger vehicle insurance like Geico has more financial security.
Geico is also known for its excellent customer service. Geico outperformed the national average in California, Central and New England, according to the J.D. Power 2021 U.S. Auto Insurance StudySM.
Customers were polled on their satisfaction with claims, billing, price, policy, and other topics.
#4. Nationwide:
Most motorists will find Nationwide to be a good choice for auto insurance. In the Best Car Insurance Rankings, Nationwide comes in fourth place, ahead of Allstate, Travelers, Progressive, American Family, and Farmers.
In the US News and World Report rating of the cheapest car insurance companies, Nationwide comes in the fifth position, ahead of Progressive, American Family, Farmers, and Allstate. Nationwide offers competitive rates that are often lower than the national average in most of the driver demographics looked at.
In a poll of real Nationwide customers, the majority expressed satisfaction with the company’s customer service, but it was also discovered that it lags behind other competitors, with fewer people likely to renew their policies or recommend Nationwide to friends and family.
#5. State Farm:
According to our calculations, good drivers spend around $802 per year for liability only insurance with State Farm.
State Farm is one of the most cost-effective national insurance companies. State Farm, as the country’s largest car insurance provider, is no stranger to customer satisfaction – the company has an A++ rating from AM Best.
State Farm has 16.19 percent of the auto insurance market share in 2020, according to the NAIC.
In 2020, State Farm received fewer complaints than the industry average, yet customer feedback on the Better Business Bureau is divided.
We chose State Farm as one of the finest car insurance companies in the US in part because of its usage-based and safe-driving incentives for young drivers.
#6. Allstate:
Allstate is a well-known firm that offers a wide range of vehicle insurance alternatives as well as a variety of discounts, but its customer service is appalling.
Allstate provides customers with tools for simple account administration, and you can interact directly with a local agent.
This insurance company is a significant national provider of car, home, life, motorcycle, renters, and off-road insurance, among other products. It is well-known in the vehicle insurance business for its long history and comprehensive insurance offerings.
However, depending on your needs, Allstate may not be the greatest option, so balance the benefits and drawbacks to find the best auto insurance providers for you.
#7. Progressive:
Progressive has mixed customer service ratings — in the J.D. Power Satisfaction Study, it scored above average in half of the regions — but it does have strong financial stability.
According to the NAIC, Progressive received an A+ rating from AM Best, and the business will write more than $33 billion in premiums in 2020. Progressive was contacted for comment on its bad review scores, but we did not receive a response.
Progressive provides vehicle insurance savings as well as a number of options to help you save money on your premiums.
Progressive’s Snapshot program promotes safe driving behaviour with premium discounts via a mobile app that watches and records your driving patterns.
According to Progressive, drivers who utilize Snapshot save $146 on their insurance coverage on average.
#8. Farmers:
Farmers Insurance has a network of agents in 42 states that offer a variety of auto insurance coverage alternatives.
Farmers is a wonderful choice for anyone searching for auto insurance because they provide a variety of discounts, have above-average claims service ratings, and a variety of ways to track your premiums, policies, and claims.
Most drivers will find Nationwide to be a solid auto insurance option. Nationwide is ranked fourth in our Best Car Insurance Rankings, ahead of Allstate, Travelers, Progressive, American Family, and Farmers.
Nationwide is ranked fifth among the cheapest vehicle insurance carriers, ahead of Progressive, American Family, Farmers, and Allstate.
In most of the driver demographics we looked at, Nationwide offers competitive rates that are often cheaper than the national average.
The majority of real Nationwide customers were satisfied with the company’s customer service, but we discovered that it falls below its competitors, with fewer people likely to renew their policies or recommend Nationwide to friends and family.
#9. Travelers:
Customers of Travelers did not indicate great satisfaction in most categories examined by our poll, as one might anticipate from low-ranked insurance.
Drivers who make claims with Travelers are dissatisfied with how their claims are handled, and many do not believe Travelers provides good value.
When we asked whether individuals would recommend Travelers to friends or family, they gave it a high rating, but when we asked if they would renew their insurance, they gave it a bad rating.
#10. MetLife:
MetLife is the country’s largest life insurance company that also sells car insurance. While their premiums are typically higher than the norm, they provide custom-fit insurance as well as a variety of discount choices.
Senior drivers, new car owners, and those searching for extra features may benefit from MetLife auto insurance coverage.
However, customer service reviews are mixed, and if customer service is your main priority, you could be better off with another alternative.
MetLife has a good financial strength rating, indicating that it will be able to pay legitimate claims without trouble.
Their customer service scores, on the other hand, are frequently ordinary or below average. MetLife auto insurance is rated about average on a national level by J.D. Power, but consistently below average in many regional markets.
While their features and pricing set them apart, several of the country’s best auto insurance providers provide more appealing options.
Frequently Asked Questions
Liability is limited to what is specified in the contract’s minimum requirements. If you are at fault in the collision, the medical expenditures of the driver or passengers are not covered. Also excluded are rental car coverage, comprehensive coverage, collision coverage, and emergency roadside assistance.
No, even if you are not at fault, it will not cover your vehicle. You can get uninsured or underinsured motorist coverage to cover such scenarios. This will assist you if another driver is at fault in the collision and does not have enough insurance to cover your expenditures.
Even if your state does not mandate minimum liability coverage, it is still a good idea to purchase it. At the very least, the amount required to cover both personal harm and property damage. This will safeguard you if you are found to be at fault in an accident.
Liability-only insurance only covers the state’s minimum needs. If your bills exceed your liability coverage limit, you will be responsible for the additional costs. If your bodily injury coverage is $20,000 but the cost is $30,000, you will be responsible for $10,000.
If you are at fault, liability only insurance covers the medical claims and repair bills of the other motorist. The insurance company will only cover the costs up to the state-mandated coverage level.
Conclusion
It’s a good idea to compare vehicle insurance rates from different companies before purchasing a policy, regardless of your auto insurance needs.
Because there is no single best insurer for every driver, the best method to discover the best deal is to compare liability rates from various providers.
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