If you want to carry only the absolute minimum, in most states you will be required to purchase liability insurance. If you cause the accident, this type of auto insurance will not help you; however, it’s great for the other driver involved. This is usually the cheapest kind of insurance you can purchase.


The issue with liability insurance is that it does not cover your vehicle. Should your vehicle be destroyed or damaged, no assistance will be available from your insurance company. However, if you cause damage to another person’s car, they will still be covered. Also, their medical expenses will be covered up to the limit of your policy.

It is definitely risky to hold liability auto insurance. Should your car be demolished in an accident, you will have to find a way to purchase another one. If your car is old and not worth much money, you may not be bothered too much by that. Holding liability insurance on an additional vehicle may work out, because your premiums will be lower. For drivers leasing a vehicle, liability insurance may not be sufficient. Generally, a higher level of coverage, such as collision coverage or comprehensive insurance, is required.

With this insurance, you are protected — no matter what kind of car you might run into. In these cases, the value of the car could have an impact on your financial situation, if you don’t have liability insurance. Even so, it is crucial that your medical expenses are covered, even if you are at fault. If you have health insurance, you may not need auto insurance that covers your medical expenses.

Should an uninsured driver hit your car, you won’t have the insurance coverage to cover the repairs. You may think that having driven for years without incident guarantees your good luck, but insurance is about envisioning the worst-case scenario. Liability auto insurance may still be the best choice, but you can shop around for the best price.