I recently fielded a question from a client asking the question what does liability only car insurance cover. When you have a ‘liability only’ personal auto insurance policy it means your policy will respond only if you cause bodily injury or property damage to other individuals.
If the liability limits on your auto policy are $100,000 of bodily injury per person, $300,000 of bodily injury per accident, and $100,000 in property damage then with a ‘liability only’ auto policy if you are involved in an accident the policy only responds and provides reimbursement for bodily injury and property damage that happens to others.
When someone states they have ‘full coverage’ they are saying their auto policy includes physical damage coverage for Comprehensive, Collision, Towing or Rental Reimbursement.
Comprehensive coverage applies to any direct and accidental loss not caused by collision. It will reimburse you for loss due to: fire, theft or larceny, windstorm, hail, water or flood, malicious mischief or vandalism, contact with a bird or animal, & glass breakage. You would be covered under comprehensive coverage if a tree fell onto your car, if a thief were to steal your car radio or even steal your car.
Collision coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Even if you are at fault for any accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible on your policy. If you’re not at fault, your insurance company may try to recover the amount they paid you from the other driver’s insurance company. If they are successful, you’ll be reimbursed for the deductible.
Transportation expense provides for payment of a rental vehicle up to the amount you select as a result of a covered loss.
Towing coverage is intended to provide only for emergency service and for labor performed only at the place of disablement. This includes lockout, tire changing, even if you run out of gas.
Hopefully this will address any questions that you might have about what liability only car insurance covers.