what is liability only insurance

Liability-only insurance is a type of car insurance policy that provides coverage for damages you cause to others, but not for damages you sustain. It is the most basic level of coverage that you can purchase for your vehicle and is legally required in almost every state. Liability-only insurance typically includes two types of coverage: bodily injury liability and property damage liability. Bodily injury liability pays for medical expenses, lost wages, and pain and suffering compensation for the other party involved in an accident that you caused. Property damage liability pays for damage to another persons property. Liability-only insurance is generally cheaper than full coverage insurance since it provides less financial protection. Full coverage insurance includes liability coverage along with additional coverage for damages to your vehicle from collisions as well as non-collision incidents such as storms and fires. While liability-only coverage will help you meet the legal requirements in most states, it may not offer you an adequate amount of coverage in the event of an accident. Therefore, it is important to weigh the pros and cons of liability-only insurance versus full coverage insurance and choose the policy that best suits your needs and budget.