What Is Liability Only Car Insurance Coverage?

Most drivers understand the importance of car insurance, but not everyone knows what types of coverage are available. Liability only car insurance coverage is a type of auto insurance that provides financial protection in the event of an accident. It only covers the costs associated with the damage caused to another person or property. Liability only coverage does not cover any damage to the policyholder’s vehicle.

What Does Liability Only Car Insurance Cover?

Liability only car insurance coverage is designed to provide financial protection for those who cause an accident. If a policyholder is at fault for an accident, their liability only car insurance will cover the costs associated with the damage to the other person or property. This includes medical expenses, lost wages, and damages to the other person’s vehicle. Liability only coverage will also cover any legal costs associated with the accident.

Liability Only Car Insurance vs. Full Coverage

The main difference between liability only car insurance and full coverage is that full coverage also covers the costs associated with damage to the policyholder’s own vehicle. This includes comprehensive and collision coverage, which covers damages caused by hail, theft, vandalism, and other non-collision-related events. Full coverage also includes uninsured/underinsured motorist coverage, which covers the costs of an accident caused by a driver who does not have adequate insurance.

Benefits of Liability Only Car Insurance

The main benefit of liability only car insurance is that it is much more affordable than full coverage. This is because it does not cover the costs associated with damage to the policyholder’s own vehicle. This makes it ideal for drivers who are on a budget and don’t have the funds to pay for full coverage. Additionally, liability only coverage is required in most states, so it is important for drivers to have some form of coverage.

Drawbacks of Liability Only Car Insurance

The main drawback of liability only car insurance is that it does not cover any damage to the policyholder’s own vehicle. This means that if a policyholder is involved in an accident, they will be responsible for paying to repair or replace their own car. Additionally, liability only coverage does not cover any damages caused by something other than an accident, such as hail, theft, or vandalism. This means that if the policyholder’s car is damaged in any of these ways, they will have to pay for the repairs out of pocket.

Bottom Line

Liability only car insurance is a type of auto insurance that provides financial protection in the event of an accident. It only covers the costs associated with the damage caused to another person or property, and does not cover any damage to the policyholder’s own vehicle. Liability only car insurance is much more affordable than full coverage, but it does not provide coverage for damages caused by something other than an accident. It is important for drivers to understand the differences between liability only and full coverage in order to make an informed decision about their car insurance.