There are many types of car insurance coverages to choose from. The kind of coverage you get may depend on many things including the age of the car, or whether your car is financed or owned outright. Other things to consider are options like accident forgiveness, vanishing deductibles, and even road side assistance. But if you’re looking for just the least expensive option, liability only may be the answer.
Liability car insurance is required in all 50 states and it’s the bare-bones policy that will keep your premiums at their lowest. Liability only insurance will not only keep money in your pocket but will also insure that you are in compliance with the law.
It all sounds great but there are some things to think about. For one thing, as mentioned before, if you don’t own the car outright, liability only insurance is not an option. Also keep in mind that if you are in an accident and your car is totaled, or if your car is stolen or vandalized, your insurance won’t cover. With a liability only policy, you are responsible to pay for any repair or replacement costs if you have an unfortunate event.
As you may have surmised by now, the main benefit from having liability insurance coverage is savings. The amount of savings will vary from state to state and your personal factors may come into play, but you may be able to save as much as 50 percent over the cost of full coverage insurance.
If you have decided that liability is for you, the question then becomes, how much coverage should you get? Just remember that your policy will only pay out up to your policy limits, so carrying low limits can leave you exposed if there are expensive medical or property bills to take care of.
Talk to an insurance professional for the best advice when it comes to liability only insurance.