All I need is liability insurance coverage, right?

Picture this: It’s 4:30 p.m. on a Tuesday, and you have a little downtime before heading home from work. 

You remember the last time you were paying your bills you wanted to see if you could save money on car insurance.

So you hop online, answer a few questions and

seconds later you have a quote. 

You think, “All I need is liability coverage. I don’t need all that other stuff, right? Oh, but wait—I have no idea what liability is, or what that covers.”

Put simply, “liability” means “damage to things or injuries to others that you’re legally responsible for.”

What does liability insurance cover?

Liability auto insurance coverage pays for injury or damage to the property of others if you are legally responsible. If you are sued, it also pays for your defense and court costs. It’s mandatory in most states if you own and drive a car, and requires a minimum coverage. If you own your car outright, it may be all you need—technically. However, if you’re making payments or leasing, you’ll need to carry more than liability insurance.  

While knowing what is covered through liability insurance is important, it’s also important to know what it doesn’t cover. Such as:   

• Damage to your car

• A rental car if you can’t drive your car after an accident

• Protection from uninsured or underinsured drivers

• Roadside assistance

Reading that list, you can see why it’s a good idea to have the other types of coverage, not just liability. Understanding the basics of liability insurance is a good start. We also recommend learning about the full range of insurance coverage available when shopping for new or cheaper rates.

To summarize, there’s no one-size-fits-all when it comes to insurance coverage. For example, if you own an older car, it may not be worth your while to pay for collision or comprehensive coverage. After all, the value of your vehicle may not be worth the expense. That’s not to say liability insurance is all you need; many states also require Uninsured Motorist Bodily Injury (UMBI) and Uninsured Motorist Property Damage (UMPD) coverage.

Insurance pro tip: Ask questions! We know insurance jargon is tricky, and frankly, not very fun to read. No matter whom you buy insurance from (though, we think it should be us), let the pros answer your questions so you can make an informed decision by emailing us at support@hiroad.com.