Liability-Only: Ask Your Insurance Company If It’s Right for You

For those of us that depend on the privilege of driving for transportation, purchasing a liability policy from your insurance company is a must. Actually, it’s a legal requirement in order to operate a motor vehicle in the most of the 50 states. While you may be able to afford more comprehensive coverage from your insurance provider, however, others may be limited in available options.

What’s Liability Coverage?

Consider liability coverage as the basic level of protection offered by an insurance company to protect other parties involved in an accident in which you caused. There are two basic types of liability coverage: bodily injury and property damage coverage. Assuming that you are responsible for an accident makes you the at-fault driver, which means your insurance company is liable for paying certain damages incurred to the injured party. Bodily injury covers the following damages from your insurance company:


• Bodily harm
• Sickness or disease as a result of the accident
• Required home care following the accident
• Loss of services (the injured party’s loss of income)
• Death.


Property damage is also included in liability coverage from your insurance company. Property damage liability covers damages to the other person’s vehicle, property, or any belongings damages in the event of the accident in which you were at fault.

Property damage does not cover the costs to repair your own vehicle. Instead, it’s necessary to purchase such policies as comprehensive coverage and physical damage coverage from your insurance company. For motorists with an outstanding loan on vehicles, physical damage coverage is usually a requirement.

What Liability Insurance Doesn’t Cover?

Before purchasing a liability policy from an insurance company, it’s important to understand what’s not covered. Physical damage to your car such as body repairs or costs for replacing a totaled vehicle are not covered by your insurance company. Any medical expenses that you incur due to an accident are also not covered.

It’s also important to keep in mind that if the other party also carries liability-only coverage, chances are each will be responsible for their own bodily injury and property damages.
When to Consider Liability-Only Coverage?

If you’re considering liability-only coverage from your insurance company, there are a couple things to keep in mind.

• Value of your vehicle – If your car is an older model with a lot of miles, chances are the value of the vehicles has significantly decreased; therefore, liability-only may be a cost-saving option.

• Personal budget – Obviously, it’s important to purchase coverage that you can actually afford from an insurance company. Missing payments and lapses in coverage are a sure way to loose whatever coverage you do have.

For some, liability-only is the most practical coverage as it’s an affordable option to meet the required state motorists’ regulations. If you have questions about whether or not liability is the right choice for you, contact your agent or a reputable insurance company for more information.

Related Links to Insurance Company Liability Coverage:

-Basics of Liability Car Insurance

-Different options for auto insurance coverage

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