What Does Liability Only Car Insurance Cover

Understanding Liability Only Car Insurance: What Does It Cover?

Car insurance is an important purchase for anyone who owns and drives a car. Having the right type of coverage can make all the difference in the event that an accident occurs. There are many different types of car insurance coverage to choose from, but one option is liability only coverage. Knowing what does liability only car insurance cover can help people make the best decision for their individual needs.

What is Liability Only Car Insurance?

Before understanding what does liability only car insurance cover, it is important to have a basic understanding of what it is. Liability only car insurance is a type of coverage that only provides protection for the other party in the event of an accident. In other words, if a person has liability only car insurance and is involved in an accident, their insurance company will only pay for the damages and injuries of the other party. It does not cover the damages to the policyholder’s own car or any injuries they may suffer.

What Does Liability Only Car Insurance Cover?

Now that the basics of liability only car insurance are understood, it is possible to answer the question of what does it cover? As mentioned, liability only coverage will pay for the damages to the other party’s property and injuries they may have suffered. This includes the other person’s car, as well as their medical bills, lost wages, and other related costs. In addition, liability only car insurance also covers legal fees if the other party decides to take legal action against the policyholder.

When is Liability Only Car Insurance the Right Choice?

Liability only car insurance is not the right choice for everyone. It is typically best suited for people who drive older cars that are not worth a lot of money. In these cases, the cost of a comprehensive policy which includes collision and comprehensive coverage may not be worth it. It is also a good option for people who are on a tight budget and need a basic policy that will provide them with the minimum required coverage.

Understanding the Pros and Cons of Liability Only Car Insurance

Before deciding if liability only car insurance is the right choice, it is important to weigh the pros and cons. On the plus side, liability only car insurance is relatively inexpensive. This makes it a great option for people who are on a tight budget. On the other hand, it is important to remember that liability only car insurance does not provide any coverage for the policyholder’s own car or any injuries they may suffer. This means that the policyholder is responsible for any costs associated with these types of damages.

Conclusion

Knowing what does liability only car insurance cover is important for anyone who is considering this type of coverage. Liability only car insurance is a great option for people who drive older cars and are on a tight budget. However, it is important to remember that this type of coverage does not provide any protection for the policyholder’s own car or any injuries they may suffer. Understanding the pros and cons can help people make the best decision for their individual needs.