Pros and Cons of Liability Car Insurance

coverage if their own vehicle gets damaged. However, having insurance is also critical if one happens to be liable for damaging someone else’s property and/or injuring someone else with his or her vehicle. That is what liability auto insurance is meant to cover. The basic car insurance “package” includes a liability component, but there is also the possibility of buying liability-only auto insurance. And the best way to find liability-only coverage is to use online free quotes on car insurance.

auto-insurance-ratesAmong the pros is the fact that you could save a lot on your insurance. You may be able to reduce your insurance costs by fifty percent or even more. That would imply saving about 500 dollars every year, according to the National Association of Insurance Commissioners, which is a standard-setting organization. Having all the other components in your insurance policy such as comprehensive and collision means that you have to pay for the full package. Reducing your insurance to a liability-only policy means that you only pay for a limited type of coverage. But that is the problem with it, in that it is limited.

That is the inherent disadvantage in having liability-only insurance. Unless you have a good amount of money saved, you will be in big trouble should you need any other type of auto coverage. Only if the amount you currently pay for the collision and comprehensive components of your insurance every year is more than 10 percent of the car’s value and if you have reserve funds, only then does it make sense to limit your coverage to liability. Otherwise, having your car damaged in a traffic accident or by some natural hazard will be disastrous for your budget.

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