You’ve recently made a car purchase and can’t wait to get behind the wheel. Your primary concern is adhering to state laws to ensure legal driving. In order to meet these requirements, you’ll need affordable liability only auto insurance that comes with liability coverage and other state mandated coverages. This type of a policy offers the minimum required and is typically priced at about one third of a full coverage policy. Its purpose is to fulfill the basic legal obligations imposed by each state while providing essential protection against third-party claims in the event that you’re responsible for an accident.
Despite the affordability of liability-only car insurance policies, a concerning 12.6% of drivers remain uninsured. In certain states, this percentage can even reach as high as 25%. Given these statistics, it becomes evident that cheap liability vehicle insurance policies could assist numerous individuals in obtaining coverage. As a result, it is strongly advised that such motorists engage in extensive and diligent comparison shopping.
Most states boast a plethora of automobile insurers, numbering at least a hundred, which increases the likelihood of finding affordable minimum coverage. It is crucial for people to understand that each insurance company utilizes its own methods to assess risk and calculate premiums. Consequently, the next insurance quote they receive might be significantly cheaper than the previous one. This is why obtaining multiple quotes is essential, as it enables individuals to cast the widest possible net and discover the most affordable liability car insurance policy.
Things to Know About Basic Coverage
While finding and buying cheap liability only auto insurance clearly serves the purpose of keeping you legally and financially protected for the damages you cause to other people, it has its limitations. That is why it is a good idea to have a look at what coverage you get and don’t get. They are outlined below:
- It is a legal requirement across the US
Anyone who owns a vehicle must insure it before it can be driven on the roads in virtually every state. One of the first things you should do after purchasing a vehicle is to arrange at least liability only auto insurance policy that usually includes liability coverage and other state required coverages. Laws are strict and consequences of non-compliance can be serious to ignore.
- Every state has own rules
Each state determines the minimum vehicle insurance coverage required within their jurisdiction. Knowing what they are gives you a very good idea as to its sufficiency. Each state also monitors compliance and determines the penalties for non-compliance. In most jurisdictions, if you get caught driving without insurance you have to pay fines, your driver license and vehicle registration may be suspended, your auto may be impounded and you may even face jail sentence depending on severity of infraction and its consequences.
- It includes Bodily Injury coverage
There are two parts to a liability policy and the first one is Bodily Injury, which compensates injured third party drivers, passengers and other road users if the accident is caused by an insured driver. It pays for their medical expenses and other reasonable consequential losses like loss of wages and physical therapy.
- It includes Property Damage coverage
The second part is Property Damage, which pays for other people’s vehicles or properties in an accident you are at fault. These include repair costs to vehicles, buildings, road fixtures and any other losses that may be reasonably claimed.
- Uninsured Motorist Coverage may be included
Some states require UMC to be included as part of the minimum. Uninsured motorist coverage pays for your and your passengers’ injuries and damages in an accident caused by a driver without insurance. If it isn’t required by your state, this is a good provision to have, especially in states with a high ratio of uninsured drivers and when you don’t have Collision and Personal Injury Protection in your policy.
- Personal Injury Protections may come with it
No-fault states insist that people pay for their own injuries up to certain limits. In those states, you would be insuring your own losses with a Personal Injury Protection, which pays for your and your family’s medical expenses regardless of fault. Outside of no-fault states, people can choose to include PIP or leave out.
- You pay if it is insufficient
If the costs of claims against you are more than your liability automobile insurance limits, you are responsible for paying the rest of the losses out of pocket.
- Better to buy a policy with higher limits
Most motorists are expected to get involved in 3 – 4 accidents in a lifetime on average. If you are lucky and extra careful you may be able to avoid them all. And a serious accident can cause injuries and damages in the hundred thousand dollars mark. Just think what if you hit an expensive sports car. Most basic policies only go in the ten thousands bracket. That means there is a high chance it will come short of paying all the losses. That is why you should increase liability limits to comfortable levels.
- Liability coverage doesn’t pay for damages to your auto
If you want to protect your car as well, you will need to add Collision and Comprehensive coverages to your Liability coverage.
- Always get a few quotes
Shopping for a liability only car insurance policy is essential and can be highly fruitful. Not only the more quotes you get the higher the chance of finding a cheap price but also various companies may offer different levels of liability coverage as standard. Many auto insurers are known to set their minimum liability coverage limits higher than what is required by the state. That is why you have the chance of not only comparing prices but coverage levels too.
- Look for additional incentives and discounts
Often companies offer extra discounts to make switching companies more enticing. Also, you reduce your premium further if you pay it upfront or a few days earlier than the renewal date. There may even be discounts for setting an automatic payment. It is always worth asking or checking if there are any other incentives and discounts. Sometimes, agents can use their knowhow to get you a little more savings.
Driving without insurance carries significant risks, making it crucial for motorists to make every effort to find affordable coverage so that they can afford to buy what they need. By actively seeking discounts and thoroughly exploring different insurance providers, individuals can increase their chances of locating the cheapest insurer available. Buying liability car insurance allows them to safeguard themselves against the legal and financial ramifications of driving a vehicle, up to policy limits.
Price variations depend on factors such as state regulations, age, driving history, vehicle details, and the specific insurance company applied to. However, with diligent research and persistence, the majority of motorists can indeed find cheap liability car insurance that suits their needs.