Updated 2026-11-01
Liability-only is the leanest kind of car insurance most states allow. It keeps premiums lower by covering only harm you cause to others. Before choosing it, know which bills would be yours.
Damage to your own car
If you cause a crash, liability pays for the other driver's car, not yours. Repairs or replacement come out of your pocket. If the other driver is at fault, you can claim against their insurance, but that depends on their coverage and on proving fault.
Theft, weather and animals
Comprehensive coverage handles theft, vandalism, hail, flooding, fire and animal strikes. A liability-only policy pays nothing for these. If you park on the street or live where storms or deer collisions are common, weigh this risk carefully.
Your own injuries
Liability does not pay for your medical bills. Depending on your state, personal injury protection or medical payments coverage may be required or available. Your health insurance may also respond, subject to its terms.
Uninsured drivers
If a driver with no insurance, or too little, hits you, liability-only does not help. Uninsured and underinsured motorist coverage fills that gap, and some states require it.
Extras
Towing, roadside assistance and rental reimbursement are add-ons. Some are inexpensive, and some insurers allow them on liability-only policies.
Choosing what to add
- Ask the price of each option separately
- Consider your savings and how you would get around without a car
- Revisit the decision when your car, finances or commute change
A liability-only policy can be a sensible choice. It works best when you understand what you are agreeing to pay yourself.
A simple test
If losing the car tomorrow would leave you unable to get to work and without the savings to replace it, the extra coverage may be worth its cost.