Basically, liability coverage is a part of your car insurance policy, and helps pay for the other driver’s expenses if you cause a car accident. It does not, however, cover your own. It’s important to note there are two types of liability coverage: bodily injury and property damage. A car accident can be expensive.

When should I switch from full coverage to liability?

When should I switch from full coverage to liability? As your vehicle ages, its value will depreciate. At a certain point, it may no longer be worth it to maintain a full coverage insurance policy. In general, 10 years is a good time to consider switching from full coverage to just liability.

Why would someone only carry liability insurance?

It provides protection only for other drivers. If you cause an accident, this type of car insurance pays for the damage to the other vehicle or the other driver. If you have a loan on the vehicle, you may be legally required to carry liability, comprehensive, and collision insurance.

What is the difference between liability and full coverage auto insurance?

First things first, let’s define liability and full coverage auto insurance. What Is Full Coverage Car Insurance? Full coverage auto insurance protects you if your vehicle is damaged or totaled, covering both collision and comprehensive coverage. Here are a few specifics covered by most comprehensive plans:

What’s the difference between liability and other than collision insurance?

A car insurance policy with liability and comprehensive coverage would be something in between the legal minimum and “full coverage.” Comprehensive coverage is sometimes referred to as “other-than-collision” coverage, or OTC. Obviously, it covers damages to your vehicle that arise from something other than a collision.

Can a car be insured for liability only?

Vehicles that are already damaged should also be insured for liability coverage only. In fact, car insurance companies will usually insure a vehicle with existing damage for only liability and any required state coverage. There are other circumstances when liability only coverage is not available.

Can a car insurance policy have full coverage without collision?

A motorist can elect to have comprehensive coverage without collision, but not collision without comprehensive. A car insurance policy with liability and comprehensive coverage would be something in between the legal minimum and “full coverage.”