What is Liability Only Car Insurance?

If you're trying to decide on the best auto insurance for your needs, you may come across different types of car insurance coverage, such as liability only car insurance. Liability only car insurance is a type of policy that covers liability for damages caused by an accident, but it doesn't provide any coverage for the vehicle or its occupants.

In most states, liability insurance is a legal requirement for drivers. This type of insurance is designed to protect other people if you cause an accident. It pays for medical costs, repairs to another driver's vehicle, court costs, and other expenses if you are found to be at fault. It also provides protection if you're sued, up to the limits of your policy.

How Does Liability Only Car Insurance Work?

Liability only car insurance covers you for bodily injury and property damage to other people caused by an accident for which you are responsible. It does not cover any medical expenses, repairs, or other expenses for yourself or your vehicle.

Liability only car insurance policies usually consist of two parts: bodily injury liability and property damage liability. Bodily injury liability covers medical expenses and other costs for anyone who is injured in an accident that you caused. Property damage liability covers damages to another person's vehicle or property, such as a fence, mailbox, or building.

What Are the Benefits of Liability Only Car Insurance?

The main benefit of liability only car insurance is that it helps protect you from being held liable for damages to other people's property or bodily injury. It also may help protect you from financial hardship if you're sued for damages.

Another benefit of liability only car insurance is that it may help you save money. Because it does not cover your vehicle or medical costs, it is typically much less expensive than other types of auto insurance.

When Is Liability Only Car Insurance Not Enough?

Liability only car insurance is often not enough if you are in an accident with an uninsured motorist or if you are found to be at fault for an accident. In these cases, your liability insurance will not cover your medical expenses or repairs to your vehicle.

Another situation in which liability only car insurance is not enough is if you are in an accident with a driver who is underinsured. In this case, your liability coverage may not cover all of the damages caused by the accident.

Should I Choose Liability Only Car Insurance?

Whether or not you should choose liability only car insurance depends on your personal situation. If you are a safe driver who is rarely involved in accidents, liability only insurance may be a good choice. It is typically much less expensive than other types of auto insurance.

However, if you are a high-risk driver or are involved in accidents often, it may not be the best choice. In this case, you may want to consider comprehensive or collision coverage to protect yourself and your vehicle in the event of an accident.