Individual states have control on car insurance and also have their set guidelines & provisions. The minimum amount of legal coverage required is also included in these regulations. If you want to drive a vehicle legally in any state, you need to have some kind of auto liability insurance coverage. Now the question comes, what liability insurance is?An auto liability only insurance helps in covering the cost of damage done to other people and their property at the time of accident, in which you were at fault. But, the insurance will not cover the cost of damage caused to you or your property. The insurance is necessary for protecting other people in the accident, when you are responsible for it. As you don't get the cost of the damage caused to you or your vehicle, most of the banks will not even give you loan for purchasing a new vehicle till you have a full coverage auto insurance.

Many auto insurance buyers opt for a full coverage insurance by considering that it covers everything. But, this is not the case. In real, a full coverage includes two other forms of insurance coverage called comprehensive and collision coverage. We can't deny that there is some sort of flexibility in this type of insurance in comparison to liability only insurance as it covers two other things. A comprehensive coverage can provide you maximum relief without collision coverage, but a collision coverage can not do that without the first one.

A collision coverage deals only with auto collisions, while a comprehensive coverage deals with different areas like fire, hail, theft etc. You must know that the combination of collision and comprehensive coverage is necessary, even when you are still paying that car loan.

Let's discuss more about driver liability insurance. The main purpose of this insurance is to cover the cost up to the maximum on the policy. It will cover the expenses like damages and injuries happened to other people present at the time of accident, which happened due to the fault of the driver. The insurance also covers legal representation for accidents.

There are two types of liability only liability insurance covers:

• Property damage liability
• Bodily injury liability

The property damage liability covers you and other drivers only if the property of some other person gets damage due to your faulty driving. Bodily injury liability covers the cost of expenses for injuries and death of other people in the accident caused by you.

Buying an insurance is a daunting task. To make the deal better and easier for you, there is a need to know the advantages of each insurance type. The main benefit of a liability only car insurance is its lower cost. We know that having an insurance is a legal requirement, therefore liability only is the cheapest option for you. As you have agreed to pay for all the damage and medical expenses caused in the accident you are responsible for, the amount to be paid for insurance is not much.

Drawback

Car accident liability insurance is cheaper only if you are not the reason for the accident or if the damage is not too expensive. If you are found guilty for the accident, then all the medical expenses and damage costs will be paid by you. There are chances that the extent of damages might cost you more than what you would have paid for getting a full coverage insurance. If the faulty driver is sued because of the accident, he will also have to pay for that.

When to Buy a Liability Only Auto Insurance?

If you are confident about yourself being a safe driver or you have an old model car,  liability only auto insurance is a cheaper option. For younger and inexperienced drivers, this may not be a wise choice. One more thing to consider is, that liability insurance is good if you own a car. If some loan is going on your car and you don't own the title, go for a full coverage insurance.