General

Best Cheap Car Insurance with Liability Only of 2022 – Forbes Adviser

Best Cheap Car Insurance with Liability Only of 2022 - Forbes Adviser

Liability-only auto insurance comes with two different levels of protection: Personal Injury Liability coverage and Property Damage Liability coverage.

Personal Injury Liability Cover

This type of liability protection can pay someone else’s medical bills, plus their pain and suffering costs and lost wages, after you’re found guilty of a car accident.

Not only can this coverage pay for medical expenses, but it can also come in handy to pay legal bills if you’re charged after an accident. However, payouts only go up to the liability limits of your policy. You are still responsible for amounts that exceed the limits of your insurance policy.

Property Damage Liability Coverage

This type of liability protection helps pay for repairs when you cause damage to someone else’s property, including their vehicle.

This type of coverage can also come in handy to pay for repairs on other types of property you damage, such as a fence or building you bump into.

When shopping for auto insurance, keep in mind that the limits of basic auto liability insurance policies may be insufficient for certain types of auto accidents. If you cause an accident that causes damage beyond the limits of your policy, you are still personally liable for additional costs and damage. If you fail to meet these financial obligations, you could face legal repercussions, as well as garnishment of wages or liens on your assets.

Ultimately, this is the trade-off you make when purchasing a liability-only auto insurance policy with limited protection. This type of insurance helps drivers meet legal requirements in their country at the lowest possible cost, but it can also leave you financially vulnerable if you have an accident that results in expensive medical bills, property damage, or both.

Related: Liability vs. Full Coverage Auto Insurance

How to read auto insurance liability limits

Individuals looking for a liability-only auto insurance policy should understand the policy limits of this type of insurance and how they work. In general, insurers bundle limits for personal injury and property damage in an easy-to-understand format that looks something like this: 25/50/10.

With only liability coverage with 25/50/10 limits, the policy offers:

  • $25,000 in personal injury liability coverage per person
  • $50,000 in Accident Personal Injury Liability Coverage
  • $10,000 in Accident Property Damage Liability Coverage

By contrast, with 50/100/25 limits, the policy offers:

  • $50,000 in personal injury liability coverage per person
  • $100,000 in Accident Personal Injury Liability Coverage
  • $25,000 Property Liability Coverage per Accident