Liability only car insurance is a type of car insurance that pays for the property damages and medical expenses associated with an accident that you cause or are responsible for. There are many pros and cons to acquiring this type of car insurance.
The most important pro of having liability only car insurance is that it is the minimum coverage required by law in almost every U.S. State. This type of insurance covers three areas; bodily injury per injured person, bodily injury per accident, and property damage.
In almost every U.S. state minimum requirements for liability only car insurance coverage includes mandatory medical payment coverage that kicks in no matter who is at fault up to $1,000 or more or $5,000 or more for personal injury protection. This covers treatment of injuries to a driver and any passengers in the car during the accident
Another pro of liability only car insurance is that it is typically cheaper than other more full coverage types of car insurance. Because a liability only policy does not include coverage for your own car or bodily injury (medical) expenses, you incur that responsibility on your own. Liability coverage only protects other drivers and their cars. When you add coverage to protect your vehicle and avoid incurring your own medical expenses, you are also adding more premiums. Therefore, liability insurance is generally cheaper than full coverage.
Liability only car insurance can be the right choice when you have an old car that is not very valuable, when you are experiencing financial hardship and need to save a few dollars or when you have had a rough few years on your driving record with many moving violations or a DUI and need to find insurance that will cover you.
An important con to holding a liability only car insurance policy is the loss in coverage in the event of an accident or some other form of damage to the covered car. The most obvious con of liability only car insurance being that while your premium is generally cheaper, you may not actually end up saving money because of financial loss incurred when an accident that you are responsible happens and you have to cover the cost of your vehicle repairs and other related expenses.
About the Author: Leigh Jackson is a freelance writer for the Texas auto insurance industry. She specializes in helping consumers buy the right policy from liability only car insurance to full coverage options and revealing new ways to save money on auto insurance.