Is Liability Auto Insurance Enough?

Liability auto insurance is a type of insurance that will do little for you and a lot for other drivers. In many states, there are requirements that you will need to meet to have and drive a vehicle. One of these requirements is that you have insurance to protect other drivers should you cause an accident. In most states, the minimum type of insurance that you can have, then, is called liability auto insurance.

This type of insurance does not cover your vehicle. Should you get into an accident and the vehicle is damaged or destroyed, you will not receive any coverage if you only have this limited liability coverage. But, if you hit someone else with this type of coverage, their car and their medical expenses will be covered up through the amount of coverage that you have.

It can be risky to carry this type of insurance. Should you destroy your car in an accident, then you would not have a vehicle nor would you have the money to purchase a new vehicle. Many individuals have only liability coverage because of the car’s value. If the car is not worth much and you can afford to recoup the loss of the car, it may be beneficial to only pay for liability coverage. This is not an option if you are currently leasing or paying for your vehicle through a finance company, though. In most cases, they will require that you have additional coverage including comprehensive coverage and collision coverage for the vehicle.

Should you choose to have only liability auto insurance on your vehicle, it is wise to make sure that your medical expenses will be covered if you are hurt in the accident. If you have personal health insurance that will cover it, this may be okay as long as you insure coverage is there. Also, it can be troublesome for you should someone without insurance hit your car as there would be no insurance coverage to do the repairs. Remember, when deciding which type of insurance to carry on your car that no one plans to have an accident.