Liability Only Insurance Coverage: What You Need to Know

Liability only insurance coverage is a type of insurance that only covers damages to others, not your own property.

This means that if you're involved in an accident, your insurance will only pay for damages to the other party, not for repairs to your vehicle or other personal belongings.

You can purchase liability only insurance to meet state minimum requirements, which vary by state but typically range from $10,000 to $50,000.

Liability only insurance is often the cheapest option, but it's essential to consider your financial situation and whether you can afford to pay out-of-pocket for damages to your own property.

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Liability only insurance is a type of car insurance coverage that only pays for damages you cause to others, not for repairs to your own vehicle. It's a more affordable option for drivers who don't need comprehensive coverage.

If your car's blue book value is extremely low, you can consider liability-only insurance. This is because the cost of repairs would likely exceed the car's value.

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As a young driver with an inexpensive car, you might be a good candidate for liability-only insurance. This is especially true if you own the car outright and it doesn't hold much residual value.

If you know your car is on its last legs and won't pass a state inspection without costly repairs, liability-only insurance might be a temporary solution.

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Liability only insurance coverage can be beneficial for those who want to save on premiums. It's a cost-effective option for individuals or businesses that don't need comprehensive coverage.

One of the main advantages of liability only insurance is that it provides financial protection against lawsuits and settlements. This can be especially important for small business owners or individuals with limited assets.

However, it's essential to note that liability only insurance does not cover damage to your own property or vehicle. You'll need to have a separate policy for that.

This type of coverage can also lead to out-of-pocket expenses if you're involved in an accident and need to repair or replace your own vehicle or property.

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Saving money on car insurance is a definite pro of liability only coverage. You can save money by opting for liability only insurance instead of full coverage.

If you're driving very little, liability only coverage might be just what you need. It's a good idea to consider dropping down to liability only coverage if you're not driving much due to the coronavirus pandemic.

Liability only insurance can be a good option if your vehicle is worth less than the cost of the full coverage policy. For example, if your car is worth $1,000, liability only might be a better idea.

In some situations, liability only coverage is the better choice, even if it means keeping your policy as-is. This is especially true if your car is worth significantly more than the cost of the policy.

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Choosing liability only insurance comes with its disadvantages. You may not have adequate coverage for damages, even if you adhere to the minimum requirements for auto insurance in your state.

Liability only insurance requirements vary from state to state and most states' minimum coverage mandates are set too low to adequately cover property and bodily injury claims.

You'll have to pay out-of-pocket for repairs or a new vehicle if you get into an accident, depending on the extent of the damage.

If you don't have medical payments coverage with your liability only policy, you could also have to pay for treatment of your own injuries.

You won't have coverage if your vehicle gets stolen, or if you need roadside assistance or towing.

A rental car to drive while yours is getting repaired is also not included in liability only insurance.

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If you own a car that's inexpensive and you've got it paid off outright, you can consider liability-only insurance. This is because the blue book value of your car is likely to be very low, making it not worth repairing if it gets damaged.

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For young drivers, liability-only insurance might be a good option if they own an inexpensive car and don't plan to keep it for long. This can help them save on insurance costs.

You might also consider liability-only insurance if your car is on its last legs and you're planning to upgrade soon. In this case, it wouldn't be worth repairing the car if it gets damaged, so liability-only insurance can provide some financial protection.

Here are some specific scenarios where liability-only insurance might be a good choice:

Liability-only insurance is the lowest amount of required coverage you can legally hold for your vehicle. This means you've opted out of holding any additional coverage.

Liability car insurance falls into two categories, covering different items. Each category has its own unique set of benefits and limitations.

Auto liability insurance coverage doesn't cover everything. For example, it doesn't cover expenses for your own bodily injuries or property damage in an accident you cause.

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You can purchase other car insurance coverages to help protect against risks not covered by your liability car insurance. Some examples include personal injury or physical damage coverage.

Having a liability-only policy means you're only carrying the state-required minimum. This can leave you vulnerable to potentially life-altering costs associated with an accident.

Typically, if you cause an accident while driving your rental car, your liability insurance will apply to that vehicle. Be sure to review your insurance policy or give your insurance provider a call to confirm.

Here are some examples of what liability car insurance does not cover:

Liability insurance limits vary by state, with some states requiring higher limits than others. For example, Maine requires $50,000 bodily injury liability per person and $100,000 per accident, while California requires just $15,000 for property damage per accident.

If you're responsible for a bad accident, you could be on the hook for paying the balance of claims that exceed your policy limits. For instance, if you have a $15,000 property damage liability limit and you cause an accident that results in $20,000 in property damage, you'd have to pay the remaining $5,000 out of pocket.

Here's a breakdown of the minimum liability insurance limits required by state:

You can purchase more coverage than your state's required minimum amount, and also add higher limits and additional coverages on your quote.

Your liability car insurance costs will depend on factors like your driving history, where you live, and your age, with cheap options available if you choose to carry only the state's minimum requirement.

Carrying only the state-minimum required liability car insurance can be relatively cheap, but it's essential to consider the risks involved.

If you're responsible for a bad accident and your policy limits are exceeded, you'll have to pay the balance of the claims, which can be a significant financial burden.

You should select the highest auto insurance liability limits you can afford to have adequate coverage in case of an unexpected event.

The amount of liability auto insurance you're required to buy depends on the state where you reside, with varying requirements across different locations.

If money is tight, you might need to settle for state minimum limits, but it's crucial to weigh the risks against your financial situation.

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Reading limits on your auto liability insurance policy can be confusing, but it's essential to understand what they mean. Your policy is made up of three distinct elements.

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The first element is the maximum bodily injury liability amount your insurance will pay per person injured in an accident, which is usually listed first. For example, if your policy has a 25/50/15 limit, the first number, $25,000, is the maximum amount your insurance will pay per person injured.

The second element is the maximum total amount your insurance will pay for bodily injury per accident, which is the second number in the limit. In our example, $50,000 is the maximum total amount your insurance will pay for bodily injury per accident.

The third element is the total maximum amount your insurance will pay for property damage per accident, which is the third number in the limit. In our example, $15,000 is the total maximum amount your insurance will pay for property damage per accident.

If you cause an accident that results in more property damage than your limit, you could be responsible for paying the remaining amount out of pocket. For instance, if you have a $15,000 property damage liability limit and you cause an accident that results in $20,000 in property damage for the other driver, you'd owe the remaining $5,000.

Here's a breakdown of what each number in the 25/50/15 limit means:

You can purchase more coverage than your state's required minimum amount, and also add higher limits and additional coverages on your quote.

In some states, the minimum required coverage is quite low. For example, in California, the minimum bodily injury liability per person is $15,000, and in Pennsylvania, it's just $15,000.

Florida is a notable exception, as it doesn't require bodily injury liability coverage at all. However, you're still required to have $10,000 in property damage liability coverage.

It's worth noting that some states have much higher minimum requirements. For instance, Maine requires $50,000 in bodily injury liability per person, and $100,000 per accident.

Here's a breakdown of the minimum required coverage in some states:

Keep in mind that these are just the minimum requirements, and you can always purchase more coverage to better protect yourself and your assets.