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The article has been updated successfully but requires approval before it is published.What is liability only car insurance?
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At the opposite ends of the car insurance spectrum are “full coverage” insurance and “liability only” insurance. Although there are many levels of coverage in between these two, it is important to note that the most basic of levels required by most states is generally liability only. Liability covers only damage caused by the driver to other people and property.
States may vary in how much liability insurance they require a driver to carry. For example, Colorado’s legal minimums are 25/50/15. The first number represents the maximum amount your insurance company will pay for injuries sustained by an individual, per accident. The second number refers to the maximum amount the insurance company will pay for all injuries sustained in the accident total, and the third number is the maximum amount your insurance company will pay for property damage per accident. Any amount of damages more than these minimums is the driver’s responsibility.
It is always wise to purchase more than the required minimums if you don’t want to pay additional money out of your own pocket. For instance, if you caused an accident in Colorado that caused $60,000 in bodily damage to a single individual, your auto insurance carrier would cover the first $25,000 and you would be responsible for the remaining $35,000. If you live in one of the 12 “no-fault” states, this example may not apply to you. Speaking with an insurance agent directly would be your best bet.
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