liability only car insurance

What is Liability Only Car Insurance?

Liability only car insurance, also known as minimum coverage or state minimum insurance, is the most basic form of auto insurance. It covers the financial responsibility of the policyholder in case they are at fault in an accident that causes injury or property damage to another person. This type of insurance is legally required in most states, but it offers limited protection.

What Does Liability Only Coverage Include?

Liability only car insurance typically includes two main components:

• Bodily Injury Liability Coverage: This covers medical expenses, lost wages, and pain and suffering for the other party involved in the accident if you are found at fault.
• Property Damage Liability Coverage: This covers damage to the other person's vehicle or property, such as fences, buildings, or street signs, if you are at fault.

Why Choose Liability Only Car Insurance?

There are a few reasons why someone might choose liability only car insurance:

• Lower Cost: Liability only insurance is the most affordable type of car insurance because it provides the least amount of coverage.
• Meeting Legal Requirements: In many states, liability only insurance is the minimum coverage required by law.

What Liability Only Coverage Doesn't Include

It's crucial to understand that liability only car insurance does not cover your own injuries or damage to your own vehicle. If you are in an accident where you are at fault, you will be responsible for paying for your own medical bills and repairs out of pocket.

Is Liability Only Enough?

Liability only car insurance is the bare minimum required by law, but it may not be enough to protect you financially in the event of an accident. Consider the following:

• Your Assets: If you are sued after an accident, your assets, such as your home or savings, could be at risk if your liability coverage is insufficient.
• Potential Costs: Medical bills, vehicle repairs, and legal fees can quickly add up, leaving you vulnerable to significant financial hardship.

Recommendation

While liability only car insurance is the most affordable option, it's highly recommended to explore comprehensive and collision coverage to protect yourself and your finances fully.