Liability Only Car Insurance

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liability only car insurance
Are you stuck driving an old car that no longer has any market value? Is this preventing you from wanting to get car insurance for it? If you try and get full coverage, you may pay way more for your car than it’s worth. That’s why it might be a good idea to purchase liability only car insurance. This is a great way to save money on your monthly insurance bill and still secure the protection you need.

Almost Every State Requires Minimum Liability Coverage

Except for New Hampshire, every state in the U.S. requires you to carry car insurance when you drive. However, you only need to meet the bare minimum requirement to be a legal driver.

This means you only need to be covered for losses that you might cause to someone else. Liability insurance covers these instances where you might cause harm to another person or their property. It’s typically the cheapest and most affordable insurance, with rates starting at about $20 for safe drivers.

Should you get a Liability Only Policy?

For those on a strict budget, it might make sense to go with a liability only policy until you can afford greater coverage. The reason why it’s cheaper than collision and comprehensive plans is that is limited coverage. For example, if your car gets stolen, it will, in most cases, not be covered by this type of insurance.

A liability policy will cover bodily injuries and property damage and nothing else. If you are in an accident that you cause, you might have insufficient coverage, which could result in you getting sued for the costs not paid out by the insurer.

This is why weighing the pros and cons of a liability-only policy before you buy one is important. It makes sense for those who cannot afford greater coverage but still need legal auto insurance. Get a free online quote and compare direct rates in minutes.

A Good Option for Those With Older Cars

This is the best plan to consider if you also have an older car. If you are in an accident and the repair costs on your vehicle cost more than the vehicle is worth, your policy may choose not to cover it. Therefore, you would be wasting money paying for that kind of policy anyway.

This is why liability insurance in its raw form is your best bet if you have an automobile 10 years old or more. It also makes sense if you do not drive much or have a second vehicle you rarely use, like a truck or van.

What does Liability Insurance Cover?

Liability insurance covers BI (Bodily Injury Liability) and PD (Property Damage Liability), which are both included in our own form of liability coverage. This pays for damages you might have caused to another person or property. Damages can be related to a vehicular accident, including medical expenses and lost wages.

  • Bodily Injury Liability – when you are ruled at fault in an accident, this protection will pay for another person’s medical bills up and to the policy’s limits. It will also, in most cases, provide legal protection if a lawsuit is filed.
  • Property Damage – pays for damage to another person’s property resulting from an accident you caused.

It is important to note that each state sets its own laws for auto insurance, and policy requirements will vary greatly.

Mandated Coverage Requirements (Other than Liability)

Some states require more than just liability vehicle insurance. Some may also require no-fault insurance, known as Personal Injury Protection (PIP). You may also be required to have uninsured motorist coverage. You can find out what auto insurance coverage your state requires today at goodtogoinsurance online.

Personal Injury Protection May Be Mandated in Some States

The PIP or No-Fault injury protection plans help pay for hospital, medical, funeral, or work loss expenses incurred if you caused an accident. Keep in mind that this not only includes an accident that was caused by you but also by passengers in your car. It even compensates for pedestrians struck by your automobile. In some states, PIP insurance is mandated.

Uninsured Motorist Insurance

Uninsured motorist coverage is another insurance that helps pay for bodily injuries. It can pay for property damage sustained by you or other passengers in certain states. If you are in an accident and the person who is legally at fault does not have auto liability insurance, the uninsured motorist coverage will kick in and take care of it.

In some states, this also covers damage caused by at-fault drivers who don’t have enough money to pay for your claim. You can add uninsured driver protection to your policy for as little as $8 per month. This is a cheap way to safeguard against getting into an accident with someone without auto insurance.

Buy Cheap Liability Car Insurance Online and Save

If you are looking for the cheapest liability-only auto insurance available, you should start by comparing quotes online. This is especially the case if you don’t currently have any coverage. You can compare 10 quotes in under 5 minutes at sites like Good To Go Insurance. Apply for your custom rate quote and get insured for as little as $20 a month today.