Many people opt for "full coverage" when purchasing car insurance to cover their vehicles. As the name suggests, this basically fully covers the car. If you get into an accident that is your fault, your insurer will still cover it. If you get in an accident and cause harm to someone else's vehicle, it will cover it as well.
Even though this is the best option for many, it's not necessarily your only option. Some people opt to only put liability coverage on their vehicles, which is insurance that covers the other person's vehicle in an accident but not your own. Since this is the only type of coverage that is generally required by state laws, it is an option for some drivers. These are a few signs that it might be an option for you.
1. Your Car is Paid For
First of all, you should know that if you owe money on your vehicle in the form of a car loan, you probably will not be able to switch to just having liability coverage. This is because many lenders require there to be ample insurance to cover the collateral of the loan, which is the vehicle. If you own your car outright, however, such as if you bought it in cash or if you have made your final vehicle payment, this could be an option for you.
2. You Have a Bad Driving Record
If you have a bad driving record, you might have found that your insurance rates are costly. One good way to cut costs is by opting for liability-only insurance. Then, you can pay less each month until your driving record recovers.
3. Your Car Isn't Very Valuable
Even if your car is paid for, you may still want to have full coverage on it if it's relatively valuable. After all, if you get into an accident that is your fault and your car is totaled, you could be left with nothing if you only have liability insurance. For those who have vehicles that are not worth very much, however, the savings of choosing liability insurance only can be worth it. Just make sure that you have a plan in mind for replacing the car if you get into a wreck if you do choose to switch to this type of coverage.
Every driver has different needs, but liability-only car insurance does work for some people. If you talk to your insurance agent, like those found at http://www.unitedsecurityagency.com, you can find out more about this option and whether or not it might be a good choice for you.