What every driver should know about “liability only” auto insurance

No two collisions are exactly alike, so auto insurance companies offer a variety of coverage, from liability only to comprehensive coverage. Liability policies are typically the least expensive, but they also offer the most limited coverage, leaving you exposed to a variety of risks. Before choosing a liability-only policy, it’s essential to fully understand what that means and whether it’s right for you.

What “Liability Only” Insurance Means

Minimum Insurance Requirements

Most states require every driver on the road to carry some minimum amount of liability insurance to pay for any damage they might cause. In Illinois, for example, your policy must provide at least $25,000 per person of liability coverage, up to $50,000 for each accident. Additionally, your policy must include at least $20,000 in property damage coverage. However, you’ll be personally responsible for any damages that exceed these limits, so you may want to purchase additional coverage for protection from lawsuits.

Damage to Your Own Vehicle

Liability-only auto insurance will pay for the other driver’s losses in an accident you cause, but what about the damage to your own vehicle? Unfortunately, unless you have collision coverage, your insurer won’t pay for personal property damage. Those repairs will remain out-of-pocket costs.

Accidents Caused by Uninsured Drivers

What if you’re hit by someone who hasn’t complied with the state requirements and doesn’t have adequate insurance? Other insurance policies include uninsured or underinsured motorist coverage, which will pay your damages if someone else causes an accident. However, if you have liability only, you won’t have much recourse, other than filing a lawsuit against the other driver.

The road can be unpredictable, which is why you need an auto insurance policy designed to provide the protection you need. The expert agents at Allegiance Insurance Services have served drivers throughout Burr Ridge, IL, offering a broad array of policies from several of the industry’s leading carriers. Visit their website for more on their auto insurance services, or call (630) 325-5600 to speak to an agent and request a quote.

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