What is Liability Only Insurance?

Liability only insurance is a type of car insurance coverage that only covers damages or injuries you cause to others. Liability insurance is mandatory in most states in the United States, and it is a critical component of a comprehensive car insurance policy. If you are involved in an accident and are found to be at fault, liability insurance will help you pay for damages or injuries to the other party.

What does Liability Only Insurance Cover?

Liability only insurance covers damages or injuries caused by you to other people or their property. It does not cover any damages or injuries you or your vehicle incur. For example, if you rear-end someone and cause damage to their car, your liability insurance will pay for the cost of repairs to their car up to your policy limits.

Liability insurance typically covers the following:

It is important to note that liability insurance only covers damages up to your policy limit. If the damages exceed your policy limit, you will be responsible for paying the difference out of pocket.

Why is Liability Only Insurance Important?

Liability only insurance is important because it helps protect you financially in the event of an accident. If you are found to be at fault in an accident and do not have liability insurance, you could be responsible for paying for the other party’s damages and injuries out of pocket. Depending on the severity of the accident, this could be tens of thousands of dollars or more.

Liability only insurance is also mandatory in most states. If you are caught driving without liability insurance, you could face fines, license suspension, and even jail time in some cases.

How Much Liability Insurance Do I Need?

The amount of liability insurance you need depends on your individual circumstances. Most states have minimum liability insurance requirements that you must meet, but these limits may not be sufficient to cover all damages and injuries in the event of an accident.

We recommend purchasing liability insurance with a higher limit than the minimum required by your state. Many insurance experts recommend purchasing liability insurance with limits of at least $100,000 per person/$300,000 per accident for bodily injury liability and $100,000 for property damage liability.

What If I Want More Coverage?

If you want more coverage than liability insurance offers, you can purchase a comprehensive car insurance policy. Comprehensive insurance covers damages and injuries to you and your vehicle, as well as damages and injuries you cause to others. Comprehensive insurance typically includes liability coverage along with collision and comprehensive coverage.

FAQs

Q: What is the difference between liability insurance and full coverage?

A: Liability insurance only covers damages or injuries you cause to others. Full coverage typically includes liability insurance along with collision and comprehensive coverage, which covers damages and injuries to you and your vehicle.

Q: Can I add liability insurance to my existing policy?

A: If you already have car insurance, you can typically add liability insurance to your existing policy. Contact your insurance company to learn more.

Q: How much does liability insurance cost?

A: The cost of liability insurance varies depending on a number of factors, including your age, driving record, and location. Contact your insurance provider to get a quote.

Q: Do I need liability insurance if I don’t own a car?

A: If you don’t own a car but still drive, you should consider purchasing non-owner car insurance, which includes liability insurance. This will help protect you financially if you are involved in an accident while driving someone else’s car.

Q: What happens if I am involved in an accident and don’t have liability insurance?

A: If you are involved in an accident and do not have liability insurance, you could be responsible for paying for the other party’s damages and injuries out of pocket. Depending on the severity of the accident, this could be tens of thousands of dollars or more. In addition, you could face fines, license suspension, and even jail time in some cases.