When you get a new car, you will need to get vehicle insurance. Most locations require you to at least have liability insurance, but you can also choose full or comprehensive auto insurance policies. If you are considering just getting liability coverage, it helps to know the benefits and drawbacks. Here are the main pros and cons of liability-only auto insurance.
Pro: You Save Money
The reason most people get liability-only auto insurance is to save money. The policy has less coverage, so it makes sense that it will cost you less money. There is a lower deposit when obtaining the auto insurance policy, lower premiums, and a lower deductible, if that applies to your insurance policy. It allows you to get what you need to legally drive without having to spend too much on the coverage.
Con: Medical Coverage Isn't Included
If you are involved in a vehicle accident that turned out to be your fault, you won't have any medical coverage with a basic auto insurance policy. There is basic medical coverage if the accident was not your fault, but even that depends on the individual policy. In most cases, accidents caused by you will not include any medical cost coverage.
Pro: It Offers Lawsuit Protection
While liability car insurance doesn't cover any damages to your own vehicle, it does protect you in a lawsuit. If you are involved in a vehicle collision that turns out to be your fault, the other drivers involved can sue you for damages to their vehicle and bodily injuries. With liability-only insurance, you have coverage against these legal costs.
Con: No Coverage for Roadside Assistance
What would you do if your car broke down while on the freeway or you got into an accident and your car was totaled? You would need to call for roadside assistance, but that can cost a lot of money. Without a credit card or cash on hand, you might be stuck. However, if you had a comprehensive insurance policy, you wouldn't need to worry about it, because those policies usually cover roadside assistance. Lack of towing options becomes a big disadvantage for liability-only policies.
Pro: Older Cars Don't Need More Car Insurance
If you have an older car or one that isn't worth much, there is really no reason to get a comprehensive auto insurance policy. They are more for cars that are worth more money, since it covers damages to your vehicle or loss of your vehicle based on the worth of your vehicle. If your car isn't worth much, you might end up paying more for the premiums and deductibles than what you would get back for your car.
Talk to an insurance agency like Ed Ramming Insurance Agency Inc to learn more about liability insurance.