Liability Only Car Insurance
What is liability only car insurance?
This refers to the car insurance where damage to the car of the policyholder isn’t covered. That denotes that if you are found at fault for an accident, while the damages of the other party would be covered under your policy, you would have to compensate for the repairs to the third party’s vehicle. This type of policy might be suitable for cars which have depreciated massively in value. Generally, when a vehicle reaches seven years of age, it’s the perfect time to take the physical damage coverage off the policy and choose this car insurance. Vehicles which are damaged already must be insured for a Liability Only Car Insurance. Car insurance firms will typically insure a vehicle with current damage for liability only and any needed state coverage. There are other cases when this policy isn’t accessible too. Even on older cars, when the vehicle is being financed or leased, the policyholder usually can’t pick liability only coverage. The financial agency holding the title of the car will need Collision and Comprehensive Coverage on the car until the lease or loan is satisfied. This is to safeguard their collateral in the event of any damage comes to the car which would render it an overall loss.