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Learning About Car Insurance

Hello, my name is Cliff Bolton. Welcome to my site about vehicle insurance. I wanted to learn all I could about insurance before I started driving to go into the decision-making process with ease. Once I started exploring the insurance industry, however, I could not stop reading. I learned all I needed to know to obtain car insurance and much, much more. I created this site to share this knowledge with my readers. I hope to help others tackle this important decision without worry. Please feel free to drop by daily to learn new information about this important topic. Thank you for visiting my site.


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Learning About Car Insurance

Is A Liability-Only Auto Insurance Policy Right For You?

by June Peterson

When you own a car or drive a car regularly, you should have auto insurance, as this is a rule in most states. When you need auto insurance, though, you can customize your plan to meet your needs, and this may mean buying a policy with very little coverage or buying one with a lot of coverage. Some people choose policies that offer liability-only coverage. This would be the most affordable type of policy to buy, but it is not the best option for everyone. Here are several things to think about if you are considering getting a liability-only auto insurance policy.

You cannot have this type if you owe money on your car

Choosing a liability-only policy is not a possibility for anyone who owes money on their car, as there will be a lender dictating what types of coverage the person must have. When a lender is involved, they will require more coverage than this, as they need to protect their interest in the deal. Because of this, you would need collision and comprehensive coverages on your policy if you have a loan. Once you pay off your loan in full, you would no longer have to abide by this requirement, though.

Liability coverage only protects other people

Having liability-only is affordable because it only protects other people. In other words, liability coverage does not provide you with compensation for damages to your car if you are responsible for any type of collision or accident. The only thing it does is provide compensation to other parties that you may collide with. If you rear-end a person, for example, your liability coverage would pay to repair the other driver's car but not your car.

The effects of wrecking your car and not having coverage

If you do not have a loan and are still considering liability-only coverage, it is important for you to think about the effects of wrecking your car and not having coverage. Would you be financially impacted by an event like this.? Would you be able to go out and buy a different vehicle if you wrecked yours and had to pay for the repairs yourself? If this would cause major financial problems, you may want to consider getting more coverage than liability alone.

If you would like more information about liability-only policies or other types of coverage, contact an auto insurance agent in your city today.