Cheap Liability Only Insurance: An Overview

If you’re looking for a way to save money on car insurance, you might be interested in liability only coverage. Liability insurance is the most basic type of car insurance and only covers damages or injuries you cause to someone else, not yourself or your car. In this article, we’ll explore what liability only insurance is, how it works, and what you need to know before purchasing this type of coverage.

What is Liability Only Insurance?

Liability only insurance is the minimum amount of car insurance required by most states. This type of coverage only pays for damages and injuries you cause to other people and their property. It does not cover damages to your own car or injuries you sustain in an accident. Liability only insurance is typically the cheapest type of car insurance because it only covers the minimum amount of damages required by law.

Liability only insurance typically includes two types of coverage: bodily injury liability and property damage liability. Bodily injury liability pays for medical expenses, lost wages, and other damages if you injure someone in an accident. Property damage liability pays for damages to someone else’s property if you cause an accident.

It’s important to note that liability only insurance does not cover damages to your own car or injuries you sustain in an accident. If you want coverage for your own car and injuries, you’ll need to purchase additional coverage like collision or comprehensive insurance.

How Does Liability Only Insurance Work?

Liability only insurance works by paying for damages and injuries you cause to other people and their property. If you cause an accident and someone is injured or their property is damaged, your liability insurance will pay for their damages up to the limits of your policy.

For example, if you have $50,000 in bodily injury liability coverage and you cause an accident that results in $75,000 in medical expenses, your liability insurance will only pay up to $50,000. You would be responsible for paying the remaining $25,000 out of pocket.

It’s important to choose liability insurance limits that are high enough to cover your assets. If you cause an accident and your liability insurance limits are not high enough to cover the damages, you could be sued for the remaining amount.

What Are the Pros and Cons of Liability Only Insurance?

Pros

One of the biggest advantages of liability only insurance is that it is cheaper than other types of car insurance. If you’re on a tight budget, this could be a good option for you. Liability only insurance also meets the minimum amount of coverage required by most states, so you can legally drive without risking fines or penalties.

Another advantage of liability only insurance is that there are no deductibles. If you’re in an accident and need to file a claim, you won’t have to pay anything out of pocket before your insurance kicks in.

Cons

One of the biggest drawbacks of liability only insurance is that it does not cover damages to your own car or injuries you sustain in an accident. If you’re in an accident and your car is damaged or you’re injured, you’ll be responsible for paying for your own damages and medical expenses.

Another disadvantage of liability only insurance is that it may not provide enough coverage in a serious accident. If you cause an accident and the damages exceed your liability insurance limits, you could be on the hook for the remaining amount. This could put your assets at risk if you don’t have enough liability insurance to cover the damages.

FAQ

What Does Liability Only Insurance Cover?

Liability only insurance covers damages and injuries you cause to other people and their property. It does not cover damages to your own car or injuries you sustain in an accident.

Is Liability Only Insurance Cheaper?

Yes, liability only insurance is typically cheaper than other types of car insurance because it only covers the minimum amount of damages required by law.

How Much Liability Insurance Should I Have?

You should have enough liability insurance to cover your assets in case you cause an accident. If you don’t have enough insurance to cover the damages, you could be sued for the remaining amount.

Can I Add Coverage to My Liability Only Insurance?

Yes, you can add additional coverage like collision or comprehensive insurance to your liability only policy. This will provide coverage for your own car and injuries in case you’re in an accident.

What Happens if I Don’t Have Liability Insurance?

If you don’t have liability insurance and you cause an accident, you could be held responsible for paying for the damages out of pocket. You could also face fines or penalties for driving without insurance.

Conclusion

Liability only insurance is a good option if you’re looking for a way to save money on car insurance. However, it’s important to understand that liability only insurance does not cover damages to your own car or injuries you sustain in an accident. Before purchasing this type of coverage, make sure you have enough liability insurance to cover your assets in case you cause an accident.