Cheapest Car Insurance Rates in 2023

Best Ways to Get Cheap Liability Car Insurance

• Study the market – With competition intensifying among insurers every day, all insurers are offering extra benefits with a smaller premium to woo probable customers. Just do some scouting, compare rates, and the numbers and end up with the best deal.
• Scour the internet – The internet gives you the liberty to compare car insurance rates and other factors on your computer screen. Keep a tab on various websites and select the best option.
• Take advice – Talk to relatives, friends, and associates who already have cheap liability auto insurance and they’ll guide you to the most viable option.
• Check out regional insurers – Often small regional insurers with high ratings for customer satisfaction offer lower rates than the major national insurers for liability car insurance. Check them out for better rates.
• Choose the insurance package that is the cheapest – For very old, seldom used or low value cars, go for the cheapest offer available even if certain selections don’t come with the insurance policy.

What is Cheap Liability Insurance?

You take out cheap liability insurance to protect yourself financially against the claims made by third party drivers for any personal injury or damage to their vehicle that you may have caused accidentally.

The liability limit of this cheap liability car insurance, however, is up to the maximum that your policy covers. In the US, most states stipulate that you must take cheap liability only car insurance for certain minimum amounts.

Why Choose Liability Insurance Coverage?

When you take out cheap liability car insurance coverage, you are basically covering yourself for compensating anyone to whom you have caused property damage or bodily injury by way of your vehicle and where the fault is solely yours.

It may so happen that your brakes suddenly failed, and you knocked down a person on the road; or crashed into someone’s garden fence and ruined his perfectly manicured garden, while also uprooting a telephone pole on the way. In that case, your insurance company will cover the damage costs payable by you up to the limit mentioned in your policy. This is thus, a good way to keep your back covered should such an unforeseen mishap happen anytime in future.

While most people prefer comprehensive insurance coverage for their vehicles, cheap liability car insurance is taking protection for yourself should a mishap with a third party happen and where the latter makes a claim for compensation from you.

Every vehicle owner knows that his car is his most dependable mode of transportation and an inextricable part of his life. However, should the car be responsible for causing damage to others and increases its owner’s financial liabilities, cheap liability only car insurance is there to work its magic. In the US, moreover, driving around without appropriate insurance is illegal and could get you heavily penalized.

What Does Liability Insurance Cover?

The coverage offered by liability insurance is usually $25,000 for bodily injury caused to an individual; $50,000 for injuries inflicted upon two or more persons; and $25,000 for property damage.

In cases where two or more people have been injured, the compensation payable is two or three times the amount slotted for the limit for bodily injury per person.

As the amount spirals, your policy gives more coverage and the premium too, increases. Another advantage of taking out cheap liability insurance is that it also covers damages payable for destructing public property.

Coverage for Bodily Injury:

In most states, the question of bodily injury arises when you have caused an injury to another person and/or his vehicle and covers losses and damages suffered by the latter thereof.

These usually include medical expenses for first aid and/or extensive treatment both at home, clinics, medical centers and for hospitalization, if required, should the injury be major; pain, suffering, trauma as also lost wages.

To quote an example of how this clause works, let’s say you caused damage to the driver of another vehicle and three other passengers traveling with him.

Here, your cheap liability car insurance will cover costs for any bodily injury claim that the driver of the affected vehicle claims or to any of the three passengers who were with him, subject to the ceiling limit of your cheap liability insurance policy.

Thus if the bodily injury limit per person is $25,000 while the injury limit is $50,000 in your cheap liability only insurance policy, your insurer is legally bound to pay a maximum of $25,000 for any bodily injury caused to any of the four people traveling in the affected vehicle.

The final ceiling shall, however, be only up to $50,000 for all claims pertaining to bodily injuries to all four individuals that result from the aforesaid accident.

Coverage for Vehicle Damage:

It is often seen that a driver, due to sheer carelessness or mechanical failure, damages another vehicle plus their own and yet there are no injuries on either side.

Now, if he has a cheap liability only insurance policy on his car with liability limits of up to $25,000/$50,000/$25,000, then his insurer is bound to cough up funds up to a limit of $25,000 for the damage he has done to the other vehicle should the latter’s owner file a claim.

However, should the damage overstep the $25,000, ceiling, anything extra is payable personally by the driver who causes the damage.

How to Choose the Right Cheap Liability Only Car Insurance Policy?

Choosing the appropriate cheap liability only insurance is often a time consuming and tedious task because of the ready availability of options available to those seeking it. Competition among insurers is fierce and this will be amply evident to you if you scour the net.

However, when shopping for cheap liability auto insurance coverage, you need to consider the following carefully:

Your Insurer’s Limits:

This is of prime importance as you first need to see how much your insurer will shell out if there’s a claim. The limits that insurers mention are usually mentioned in the policy certificate as $50,000/$100,000. This implies that your insurance company will pay you a maximum of $50,000 per affected person and a total of $100,000 in case of an accident.

The Deductible Amount:

Yet another important number that needs to be considered carefully. This is basically the amount payable from your own pocket when staking a claim. Most insurers keep a $500 deductible amount.

This, however, may vary between $100 and $2,000 also. So keep this in mind when choosing your cheap liability coverage policy. The deductible is, however, a good opportunity to save.

If you opt to pay $1,000 instead of say, $100 in case there’s a claim, you stand to save substantially provided there’s $1,000 kept aside as an emergency fund for paying bills should the need arise.

Consider Your Location:

Over insuring or even under insuring never makes sense as it doesn’t serve your purpose in the long run. This is overpaying for insurance that you don’t actually need implies wasting money.

On the other hand, skimping and exposing yourself to the risk of having to shell out thousands of dollars from your own pocket in the event of an accident is not advisable either. That’s why while taking out a cheap liability auto insurance policy, take into account your actual place of location.

A mandatory requirement is having to opt for a minimum limit, which again depends on where you operate the vehicle and live.

For example, the state of Tennessee stipulates a minimum coverage of $25,000 per person and $50,000 for a bodily injury. An additional coverage of $15,000 is required to cover damages caused to property.

Set Realistic Limits:

Of course, this fundamental legal requirement in no way implies that you will limit yourself to this bare minimum only even though you save money.

This needs to be considered carefully as a major accident could cause you to lose all your assets including your home and life savings if the affected party’s property damage and/or medical bills hit you like a ton of bricks and your cheap liability insurance policy is unable to cover them when the fault is yours.

The general thumb rule is to keep a minimum cheap liability insurance only at $100,000 per individual along with $300,000 for an accident.

Look for Discounts:

As said earlier, the competition between insurers is fierce and each of them is trying to woo customers to their stable by way of attractive discounts.

These are offered to bright students, defense personnel on active duty, members of certain registered organizations or by clubbing your cheap liability auto insurance policy with a home or life insurance policy that you already have with it.

You also get discounts if your driving is limited, the vehicle is a low-risk one or even if you have an acceptable overall credit score.

The Flip Side of Cheap Liability Auto Insurance

Unlike comprehensive car insurance, cheap liability car insurance coverage does not cover costs incurred for damages to your own vehicle or for bodily damage to yourself or any passenger traveling with you.

It also doesn’t cover other factors like damages caused by vagaries of the weather, vandalism or even theft. Also called Third Party Insurance in many countries, reasonable, and effective cheap liability coverage  is easily available if you look around for the best deals.

Again, it pays to remember always that taking the minimum coverage may not be sufficient to reimburse an affected part for damages, particularly if they are extensive. So, you’ll have to consider all above mentioned factors carefully before you select one.

First, a cheap liability only insurance policy differs vastly from no fault insurance as there’ s no protection for personal injury. The policy doesn’t cover the medical bills incurred for the offending driver and/or his passengers if there’s a collision.

The policy also does not cover the following:

• Deductible for health insurance.
• Loss of income payable to an injured/aggrieved third party.
• Any additional expense that exceeds the coverage limits for health insurance
• Funeral expenses.
• Essential services like childcare being hampered due injuries sustained by the third party.
• Damages caused by fire, riots, explosions, shattered glass, and/or
• Your car being damaged due to a falling tree, any heavy object or rocks, snow, hail, flood, earthquakes, storms, or even animals.
• Any reimbursement for a rented vehicle that you use while your damaged vehicle is being repaired.

The coverage for collision is also absent in a cheap liability auto insurance coverage policy. If your car crashes, you won’t be entitled to repairing costs or any compensation to replace the vehicle.

These include collisions with almost anything ranging from another vehicle to a lamppost or tree even. There is also no clause in such policies that are mandatorily required for financing or leasing your vehicle.

Unlike a full coverage car insurance policy, a Third Party Policy does not pay for any expenses that you have to pay from your own pocket for any repair costs above the strictly stipulated deductible amount, the vehicle’s cash value should it be irreparably damaged, costs for treating injuries to pets in your car as also compensation payable if you’re responsible for a hit-and-run case.

Moreover, this policy does not provide protection against uninsured motorists, even though they may be responsible for the accident. In such cases, you will have to shell out all expenses whereas having a comprehensive coverage policy would probably have covered that.

Also remember that a cheap liability only auto insurance scheme has no provisions for reimbursing you for expenses incurred should you have break down suddenly and where there are costs for towing the vehicle to a garage to get it repaired.

Although considered a trivial factor, it really comes in handy when you’re faced with such a situation. For fancy car owners, moreover, who install expensive and customized parts in their vehicles, such policies offer no coverage or reimbursement of they are stolen or damaged.

What To Look Out For

Should you decide to opt for cheap liability car insurance, make sure that you do the rounds of multiple insurers as their coverage may differ. That’s why carefully reading the fine print is absolutely essential and clarifying any doubt that you may have is mandatory.

Otherwise, paying for a policy and then realizing that it doesn’t serve your purpose when you need it most does not make sense at all.

Ask your insurance agent every possible question that pops up in your mind and be absolutely sure of what benefits you would be getting finally before you sign on the dotted line and hand him the premium check.

Market research shows that most people press the button for cheap liability insurance when they have low-value vehicles and drive very infrequently and where the chances of meeting with an accident are minimal.

This is a practical way of saving money since these types of policies usually cost less and are ideal mostly for retired people with limited sources of income.

FAQ

General Information Questions

Liability insurance, also called third-party liability insurance covers expenses of an injured party or damages to property. This is the minimum required insurance coverage for a large number of states in the USA. Drivers usually ask what it is,  and what it does. The following are some of the most common questions they ask.

Coverage Needs and Requirements

Liability insurance covers injuries and property damage. The state determines the minimum coverage for car insurance, and this differs between states. Car owners usually ask questions about prices of liability insurance.

If You Have an Accident

The insured person and vehicle usually hopes that the insurance is never used. This is the main point about insurance, that when it is finally used, it might not have enough coverage. The following are some questions that drivers ask about using the insurance coverage.