Introduction:
Liability-only insurance is a type of auto insurance that only provides coverage for the costs associated with damages that you may cause to another person or their property while operating your vehicle. It does not cover any damage to your car in the event of an accident. On the other hand, full coverage auto insurance provides liability and comprehensive collision coverage, protecting your vehicle if it is damaged in an accident, regardless of who is at fault.
While liability-only insurance may seem like a great way to save money on your auto insurance premiums, getting auto insurance quotes for different coverage is essential. Also, be aware of the benefits and drawbacks of having liability-only insurance before deciding.
Benefits:
Saves on Cost:
The main benefit of liability insurance is that it is typically much less expensive than full coverage insurance.
It is an excellent option for budget-minded individuals.
If your insurance premium on full coverage works out to be more than 10% of the value of your car, then it is probably a good idea to get only liability insurance.
If you are a safe driver with a clean driving record, you may get by with just liability insurance and avoid paying for full coverage insurance.
Taking liability-only insurance would be cost-effective if you drive infrequently or live in an area with a low theft rate.
Thus, taking a liability auto insurance in Laredo can help save hundreds of dollars on your auto insurance premiums for buying your next car or paying for repairs, if needed.
Fulfills State Requirements:
In most states, you are required by law to have liability insurance. Therefore, if you only get liability insurance, you will comply with state law.
Older Vehicles:
A liability-only insurance does not pay for repairs to your vehicle. So, if you have an older car or a car that is not worth much money, liability auto insurance in Lubbock may be the most cost-effective option. It would not make sense to pay for comprehensive collision coverage on a car that is not worth much money.
Drawbacks:
Lack of Coverage:
Liability-only auto insurance does not cover any damage to your vehicle in the event of an accident, even if you are not at fault. So, if you are involved in an accident, you will have to pay for all repairs and replacements out of your pocket. In addition, auto repair is usually expensive. So, if your vehicle is damaged or totaled in a collision, the repair estimate or replacement cost can bring quite a shock.
Also, liability insurance does not cover any medical expenses. In case of hit and run, paying for the other driver’s medical costs and property damage can be a nightmare if the other driver does not have insurance. Purchasing uninsured/underinsured motorists coverage can protect you from being sued by an uninsured or underinsured driver.
It does not cover any non-collision damage to your vehicles, such as theft, vandalism, or weather damage. So, if your car is stolen or vandalized, you will have to pay for all repairs and replacements out of your pocket.
In addition, liability insurance does not cover any costs associated with renting a car while your vehicle is being repaired. Also, it does provide roadside assistance such as towing service in the event of a breakdown.
Thus, collision coverage is advisable for any valuable vehicle. Moreover, if your car is financed, your lender will require that you have collision and comprehensive coverage until the vehicle is paid off.
Risk of Lawsuits:
With liability-only insurance, you risk being sued if you cause an accident resulting in injuries or significant property damage. If the other driver decides to sue you and the damages exceed your insurance coverage, you will be responsible for paying the difference out of your pocket.
Thus, it could cost you thousands of dollars or even ruin you financially.
Risk of Financial Hardship:
If you are involved in an accident and are found to be at fault, the damages could be significant. And if you don’t have enough money to cover the costs, you could find yourself in a difficult financial situation.
Conclusion:
Liability-only insurance has both benefits and drawbacks. Just be aware of the risks involved in having only liability insurance before deciding to go without full coverage.
TX Insurance Quotes can help you find the best policy to suit your needs. In addition to auto insurance, also get the best homeowners insurance quote.