Are you shopping for auto insurance in 2023? Liability only auto insurance is an option that you should consider. Different from full coverage auto insurance, liability only auto insurance is designed to provide protection for other drivers and property in the event you are at fault for an accident. In this article, we’ll explain what liability only auto insurance is and how it works, so you can make an educated decision.
What is Liability Only Auto Insurance?
Liability only auto insurance is a type of insurance policy that provides financial protection in the event that you are deemed responsible for an accident. The coverage helps pay for the cost of damages to other drivers and their property, like their car, but not to your own car or yourself. Liability only auto insurance is sometimes referred to as “bodily injury and property damage coverage” because it covers the cost of bodily injury and property damage if you cause an accident.
Liability only auto insurance policies are typically divided into two sections – bodily injury and property damage. Bodily injury coverage helps pay for medical costs and lost wages for anyone injured in an accident that you cause. Property damage coverage helps pay for repairs and replacements for the damaged property of other drivers.
What Does Liability Only Auto Insurance Not Cover?
It’s important to note that liability only auto insurance does not cover the cost of repairing your own car in the event of an accident. It also does not cover medical costs for you or your passengers, or any damage to your car. Liability only auto insurance is designed to provide protection for other drivers and their property, not for you or your car.
How Much Does Liability Only Auto Insurance Cost?
The cost of liability only auto insurance depends on several factors, including your driving record, your car, and the area in which you live. Generally, liability only auto insurance is cheaper than full coverage auto insurance because it does not cover the cost of repairing your own car or medical costs. However, the cost of liability only auto insurance can still be expensive depending on the factors mentioned above.
Is Liability Only Auto Insurance Required by Law?
In most countries, liability only auto insurance is required by law. The minimum amount of liability coverage required varies from country to country, so it’s important to check the laws in your area. In some countries, the minimum amount of coverage required is too low to provide sufficient protection in the event of an accident, so you may need to purchase additional coverage.
What Are the Benefits of Liability Only Auto Insurance?
The primary benefit of liability only auto insurance is that it provides financial protection in the event that you are deemed responsible for an accident. This is especially beneficial if you don’t have significant assets to cover the cost of damages and medical bills. Liability only auto insurance also tends to be cheaper than full coverage auto insurance, so it’s a good option if you’re on a tight budget.
What Are the Disadvantages of Liability Only Auto Insurance?
The biggest disadvantage of liability only auto insurance is that it does not provide protection for you or your car. This means that if you’re involved in an accident, you’ll have to pay for repairs and medical costs out of your own pocket. This can be financially devastating if you don’t have enough savings or assets to cover the cost of damages.
Should You Get Liability Only Auto Insurance?
The decision to get liability only auto insurance is largely up to you. If you don’t have significant assets, then liability only auto insurance may be a good option because it provides financial protection in the event that you are deemed responsible for an accident. However, if you have significant assets, then you may want to consider getting full coverage auto insurance, which provides protection for your car and yourself.
Conclusion
Liability only auto insurance is an option that you should consider if you’re shopping for auto insurance in 2023. It provides financial protection in the event that you are deemed responsible for an accident, but it does not cover the cost of repairing your own car or medical costs. The cost of liability only auto insurance depends on several factors, and it is typically cheaper than full coverage auto insurance. Ultimately, the decision to get liability only auto insurance is up to you.
