Liability Sample Quote: Rating Factors

Liability Sample Quote: Insurance Rate Factors

Discounts Applied to this Liability Sample Quote:

Additional Notes: This person doesn’t have the greatest driving record.

Disclaimer: The purpose of this page is to showcase an estimate of what insurance may cost an individual with these products and/or circumstances. This is based on a real Liability sample quote.

When is a good time to choose liability only?

Choosing liability-only car insurance can be a cost-effective option in certain situations. Liability insurance covers the costs associated with injuries and property damage you cause to others in an accident, but it doesn’t cover damage to your own vehicle. Here are some situations when opting for liability-only car insurance might be a good choice:

1. Older or low-value vehicles: If your car is older or has a low market value, the cost of comprehensive and collision coverage (which covers damage to your own vehicle) may be higher than the potential payout in the event of an accident. In such cases, it may make sense to only carry liability coverage.
2. Financial constraints: If you’re on a tight budget and can’t afford the higher premiums associated with full coverage, liability insurance can provide a basic level of protection without breaking the bank.
3. Emergency fund: If you have sufficient savings or an emergency fund set aside to cover potential repairs or replacement of your vehicle, you may be comfortable with liability-only coverage as a way to save on insurance premiums.
4. Older drivers with few assets: If you’re an older driver with few assets to protect, you may be less concerned about personal liability in the event of an accident. Liability coverage can still provide some protection without the need for extensive coverage.
5. State requirements: Some states have minimum liability insurance requirements that drivers must meet. In such cases, you may choose liability-only coverage to comply with the law while keeping costs down.
6. Secondary vehicle: If you have a secondary vehicle that you don’t drive frequently and it holds little financial value, you might opt for liability-only coverage on that vehicle to save on insurance costs.

It’s important to assess your individual circumstances and financial situation when deciding on your car insurance coverage. Keep in mind that while liability-only insurance can save you money on premiums, it may leave you financially vulnerable if you’re involved in an accident that damages your own vehicle. Before making a decision, consider your car’s value, your ability to cover potential repair or replacement costs, and your tolerance for risk. You may also want to consult with an insurance agent or broker to help you determine the best coverage for your needs.