There are various kinds of coverage options available for auto insurance. Liability-only coverage is one of the most fundamental and frequently selected kinds. However, what does liability-only insurance actually include, and is it the best option for you?
What Is Coverage Limited to Liability?
When you are at fault in an accident, liability-only coverage pays for the losses and injuries you cause to other people. The reason it’s termed “liability” is that it shields you from being held legally liable for inflicting harm to someone else or their property.
What Is Included in It?
Usually, liability-only insurance consists of two primary parts:
Liability for Bodily Injury (BIL): This insurance pays for hospital bills, missed income, and other expenditures associated with injuries to other individuals in an event in which you are at fault. In the event that you are sued after the accident, it also pays for your legal costs.
Property Damage Liability (PDL): In the event that you cause an accident, this insurance pays for the expenses of replacing or repairing the other person’s property, which is typically their car.
What Is Not Included
Liability-only insurance does not pay for any repairs to your own car or potential accident-related medical costs. You must take into account supplemental coverage such as collision or comprehensive insurance if you wish to insure your own vehicle
Are You a Good Fit for Liability-Only Coverage?
Drivers who want to meet the required minimum insurance requirements at the lowest possible cost sometimes select liability-only insurance. It’s a common option for people who drive older cars that don’t have enough value to warrant full coverage. However, you might want to think about adding collision and comprehensive coverage if you drive a more expensive or recent vehicle or if you want protection against a wider range of dangers.
Liability-only auto insurance is a cost-effective way to meet legal requirements and protect yourself from the financial consequences of accidents you cause. However, it’s important to consider your individual needs and the value of your vehicle when deciding whether liability-only coverage is sufficient for you.
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