Paying for car insurance can be a pain. You have to have it and you also hope you never need it, but liability insurance is not only critical coverage but it’s also required for all drivers. Purchasing liability-only car insurance may seem like a great way to save money upfront, but many different hazards can harm your finances if you are not properly covered.
Managing your risks is the first step to ensuring that you are properly protected. Going without coverages to save a few bucks every month can quickly cost you thousands in the long run. Skip the hassle and learn more about how to stay protected through affordable automobile insurance without overpaying.
What Is Liability-Only Car Insurance?
In short, liability-only car insurance will help cover the damage caused by you in an automobile accident, but it won’t cover the damage inflicted to you. This means if you’re in an accident and you’ve caused it, you’ll be able to avoid paying to restore the affected party’s losses through bodily injury and/or property damage.
All Texans are required by law to have liability coverage. Failure to do so can result in fines, your vehicle being impounded, and opens you up to a wide range of expensive legal fees. Here are the bare minimum coverages required in the Lone Star State:
- Known as 30/60/25, Texas requires all drivers to hold a minimum of $30,000 worth of coverage for Bodily Injury Liability per person, $60,000 worth of coverage for Bodily Injury Liability per accident, and $25,000 worth of coverage for Property Damage Liability per accident.
- Should the damage exceed your vehicle’s policy, you’ll need to pay for the rest on your own. Additional coverage can be even applied to your liability-only auto insurance.
No matter what, liability coverage is a necessary component of automobile insurance, but when enrolled alone, drivers can be susceptible to other potential losses.
How Much Is Liability-Only Car Insurance in Texas?
Even when enrolling in the cheapest liability-only car insurance, rates are going to vary. Car insurance liability only will be calculated differently for different drivers thanks to the complex factors that make up your premiums and differing calculations used by insurance brands.
Each auto insurance brand is aiming to limit the amount of risk they take on when they enroll you as a client. This is why various factors including age, driving history, claims history, the amount of coverage you purchase, etc. are all looked at by your car insurance provider.
To make things even more difficult, each brand looks at these risks differently. Brand A may not think too much of a small, one-time speeding ticket from three years ago. Brand B may not be so forgiving. At the end of the day, each brand is looking to limit risks but how they do so can vary.
This is what creates differing insurance rates for drivers. Cheap car insurance liability only is best found by comparing rates among many different auto insurance brands. This is why we’ve partnered with more than 25 providers through our insurance center.
By comparing your rate among different brands, you can pinpoint your exact coverage while seeing the difference in cost between them. No two drivers are the same and each driver deserves the best possible coverage for their needs at the lowest cost possible.
What Does Liability-Only Car Insurance Cover in Texas?
Liability-only car insurance is coverage that only protects other drivers from damage you cause. For example, if you are in an accident and you’re at fault, your liability insurance will cover bodily injury and property damage to the affected party. But for other scenarios, you may find yourself lacking in protection.
Liability-only auto insurance policy doesn’t have protection for the driver. It doesn’t protect against things outside of bodily injury or property damage. You’ll also find that it’s only useful in an accident. This is why other automobile insurance policies should be considered for better coverage.
My Car Is Totaled and I Only Have Liability Insurance
A vehicle is considered totaled whenever the cost to repair the vehicle exceeds its worth. If your vehicle is determined to be totaled after an accident and you only have liability coverage, here’s what happens:
- If you are not at fault and the party that caused the accident has liability coverage, their insurance will help cover bodily injuries as well as pay to replace your vehicle according to their policy limits.
- Should your property damage or injuries surpass their coverage limits, you’ll likely have to go through a lengthy legal saga to gain compensation that is rightfully yours.
- If you are at fault with liability-only auto insurance, you’ll have to pay to replace your vehicle as well as injuries to you and your passengers out of your own pocket.
- Drivers who cause an accident with liability-only car insurance that is driving a vehicle with a note will also be responsible for fulfilling their debt out of pocket despite their vehicle being destroyed.
- Lost wages and funeral expenses are covered if you are not at fault and the other party has the appropriate coverages, otherwise, you’ll have to recoup these financial losses either through lawsuits or out of your own pocket.
- Additionally, if you are involved in a hit-and-run or if your vehicle is totaled in an incident that doesn’t involve an automobile accident, such as flooding, you’ll need to replace your vehicle with your own money if you carry auto insurance liability only.
- Rental expenses may also have to come out of your own pocket if you are at fault and only enrolled in liability coverage.
It’s an unfortunate place to be. There is uncertainty, plenty of factors that come into play, and with so many different scenarios to consider, this is why we strongly encourage drivers to enroll in more than the bare minimum. If you are facing such hurdles, it’s never too late to plan for the future. Avoid potential financial struggles with the right auto insurance coverages from Freedom Insurance Group.
Liability-Only Car Insurance vs Full Coverage
The term “full coverage” means an auto insurance policy that has liability coverage, comprehensive coverage, and collision coverage. While no auto policy is blanket coverage, this is a great way to protect yourself against multiple threats and even receive discounts.
We’ve already talked about liability coverage, but when you add comprehensive and collision into the mix, better protection is available. Let’s break things down:
There are many instances in which your vehicle can suffer serious damage that doesn’t come from an automobile accident. For example, vehicles that are damaged from a tree limb falling, flooding, wildfires, hail, vandalism, etc., and only have liability coverage won’t be covered. Comprehensive converge is an affordable option that protects against such incidents.
Liability coverage is there to protect those who are involved in an accident but not the cause. Collision coverage can help you restore your vehicle from damages stemming from a wreck, even if you are the cause.
Full Coverage Conclusion
While paying a bit more each month may not feel ideal, it can save you thousands of dollars in the long run. Full coverage auto policies can be affordable by comparison shopping and applying discounts, which is why we save our clients an average of 40% when they enroll.
Additional Auto Coverages for Texans
Beyond liability only car insurance or full coverage, many other coverages can help drivers. These coverages are optional and not all may be necessary, but understanding how to protect yourself can help you pick the right protections for your needs. Here are popular auto coverages Texans rely on each day:
Medical Payments or Personal Injury Protection (PIP) Coverage
Both coverages are available in the state of Texas and can help pay for medical expenses after an accident including your own. PIP can even help cover lost wages and the costs of having a funeral.
Uninsured/Underinsured Motorist Coverage
According to DC Law, Texas injury lawyers, almost 20% of drivers on the road in the Lone Star State don’t have car insurance. Even those that do might not have enough to cover the rising costs of repairing vehicles and medical costs. This coverage helps you stay prepared even when others don’t act so responsibly.
If you are in an automobile accident with a vehicle you still owe money on and it’s totaled, gap insurance helps you pay the note off. Without this coverage, you’ll need to pay for the vehicle, operational or not, on your own.
Liability losses and property damage can occur to third parties when auto accidents are among more than two vehicles. Third-party coverage is there to help you better protect your finances from such situations.
Cheap Liability-Only Car Insurance for Texas Drivers
Cheap car insurance liability only is available and we’re more than happy to help you stay legal while saving money, but our clients benefit most when customizing their coverage to cater to their needs. This is why we offer a full range of auto insurance products and save drivers an average of 40%.
Through comparison shopping among top insurance brands, our agents can help you find more for less. Working with multiple top-rated providers also helps us provide you with more bundling opportunities, a better selection of car insurance discounts, and more ways to save, overall.
The idea of carrying liability-only car insurance may feel like a great one for saving money, but many real threats can turn this endeavor into a nightmare. Contact us today and ask an agent about how we can provide you with more protection without overpaying or use our free, no-obligation online tool for an auto insurance quote.