The Pros and Cons of Buying Liability Only Car Insurance

by Leigh Jackson

Liability only car insurance is a special kind of car insurance that covers a set amount of medical expenses and property damages associated with an accident that you, the insured driver, are at fault for. There are many pros and cons to having liability only 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 some states minimum liability only car insurance coverage may include mandatory medical payment coverage (applies no matter who is at fault) up to $1,000 or more or $5,000 or more for personal injury protection. Personal injury protection covers treatment of injuries to a driver and any passengers in the car.

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 best and right choice for drivers who have an older car that is not very valuable and therefore not worth paying for full coverage on. Also, for those who are experiencing financial hardship and need to save a few dollars liability only insurance's cheaper premiums can help. Finally, for people who have high risk behavior on their driving record - someone with many moving violations or a DUI and need to find insurance that will cover their insurance needs.

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.

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