Auto Insurance Liability Only: What You Need to Know

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Auto insurance is a necessity for anyone who owns a car. It protects you financially if you get into an accident, and it’s required by law in most states. One of the most common types of auto insurance is liability insurance, which covers the cost of damages or injuries you cause to other people or their property. But what if you’re on a tight budget and can’t afford full coverage? That’s where liability only insurance comes in. In this article, we’ll take an in-depth look at what liability only insurance is, who should consider it, how it works, and more.

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What is Auto Insurance Liability Only?

Liability insurance is the most basic type of auto insurance, and it’s required by law in most states. It covers the cost of damages or injuries you cause to other people or their property, up to a certain limit. Liability only insurance, as the name implies, only covers liability claims. It doesn’t cover damage to your own vehicle or injuries you sustain in an accident.

Liability only insurance typically includes two types of coverage:

Coverage
Description
Bodily injury liability
Covers the cost of medical expenses, lost wages, and other damages if you injure someone in an accident.
Property damage liability
Covers the cost of repairs or replacement if you damage someone else’s vehicle or property in an accident.

Who Should Consider Liability Only Insurance?

Liability only insurance is a good option for drivers who:

  • Own an older vehicle that’s not worth much
  • Have a limited budget and can’t afford full coverage
  • Have a good driving record and are not as concerned about being in an accident

However, liability only insurance may not be the best choice for everyone. If you have a newer or more expensive vehicle, you may want to consider full coverage to protect your investment. Additionally, if you have a poor driving record, you may be more likely to get into an accident and need more coverage.

How Does Liability Only Insurance Work?

Liability only insurance works by providing protection for damages or injuries you cause to other people or their property. If you’re at fault in an accident, your liability insurance will cover the other driver’s expenses, up to the limits of your policy. However, it won’t cover your own expenses.

The limits of your liability insurance will depend on the policy you choose. Most states require a minimum amount of liability insurance, but you can also choose higher limits for more protection. Keep in mind that if you cause more damage than your policy covers, you may be responsible for paying the difference out of pocket.

FAQs

What does liability only insurance cover?

Liability only insurance covers damages or injuries you cause to other people or their property, up to a certain limit. It typically includes bodily injury liability and property damage liability.

What does liability only insurance not cover?

Liability only insurance does not cover damage to your own vehicle or injuries you sustain in an accident. It also may not cover all of the expenses if you cause more damage than your policy covers.

Is liability only insurance cheaper than full coverage?

Yes, liability only insurance is typically cheaper than full coverage because it provides less protection. However, the cost will depend on factors such as your driving record, the type of vehicle you have, and the limits of your policy.

Should I get liability only insurance or full coverage?

The decision of whether to get liability only insurance or full coverage depends on your individual circumstances. If you have an older or less expensive vehicle, limited budget, and a good driving record, liability only insurance may be a good option. If you have a newer or more expensive vehicle, a poor driving record, or want more protection, full coverage may be a better choice.

How do I choose the right liability only insurance policy?

To choose the right liability only insurance policy, consider factors such as the minimum coverage requirements in your state, the limits of the policy, and the cost of premiums. It’s also important to compare quotes from different insurance companies to find the best deal.

Conclusion

Liability only insurance is a good option for drivers who want basic coverage at an affordable price. It covers the cost of damages or injuries you cause to other people or their property, but it doesn’t provide protection for your own vehicle or injuries. If you’re considering liability only insurance, make sure to choose a policy with adequate limits to protect yourself financially. And as always, compare quotes from different insurance companies to get the best deal.

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