So you’ve been digging around for car insurance and have finally found a rate that is reasonable but its liability car insurance only and you’re not sure if that’s the right thing for your situation. Always, when a car owner begins searching for car insurance they will find that liability car insurance will be the most reasonable on their pocket books. However, sometimes it is a great option and sometimes it’s not.
The first thing you need to take into consideration if you’re trying to decide between full coverage and liability car insurance is if you have a lien on your vehicles title. If you’ve purchased the car with the assistance of an automobile loan, then the odds that you have a lien against its title is pretty much a sure bet. If you do, then it’s quite likely that a part of the terms of your loan will be that you carry full coverage insurance or some facsimile thereof.
If that’s the case and you opt for liability coverage, you may be in default of your loan and the lending company can presumably come and repo your vehicle. Additionally, if you opt for liability car insurance instead of full coverage in a situation like this and you wind up in an accident you will be liable to pay back the entire balance of your loan to the lending company and in some cases additional fees because you violated the terms of your borrowing agreement.
What liability car insurance is, is basically the very bare minimum of insurance required by law. You’ll find that this type of coverage will cover anything that you happen to be responsible for if you happen to be in an accident that damages another’s vehicle, person or personal property.
That’s it. Liability car insurance will not cover damages incurred to your vehicle in any type of accident nor will it offer any personal coverage to you in the event that you incur any injuries. What this means is if you happen to hit a deer on the road, you have no insurance to cover it. If you happen to have a tree branch land on your car, you have no insurance to cover it.
In some situations liability car insurance is just fine, maybe you have a second car that you’ve paid cash for and use seldom, this car would most likely be fine if covered by liability car insurance. Before you purchase liability car insurance, make sure that there is nothing else that you may want covered as again; this is the most basic of car insurance plans.