When should I just have liability on my car?

Choosing auto coverage wisely can save money without compromising protection. In some cases, carrying only liability insurance (bodily injury and property damage) is the smart move. Here’s when it makes sense—and when you might need more.

✅ When Is Liability-Only Insurance a Good Choice?

Opting for liability-only coverage can be appropriate if:

• Your car’s value is low (typically under $3,000–$5,000): collision and comprehensive premiums may exceed its worth.

• You’re comfortable covering damage to your own vehicle out-of-pocket.

• You need to save on monthly premiums, and you’re willing to accept more personal financial risk.

• You’re in a state with mandatory liability coverage and want to meet just the minimum requirement.

⚠️ When You Shouldn’t Drop Comprehensive or Collision Coverage

Skip liability-only only if:

• You have a car of significant value or financing, vehicles older than 10 years often aren’t worth full coverage.

• You drive in areas with high accident risk, theft, or severe weather exposure.

• You rely on the car for work or family responsibilities—losing it would be disruptive.

• You have loan or lease obligations, which often require full coverage.

📋 Coverage Comparison

💡 Tips Before Switching to Liability Only

• Check both parts of your policy—collision and comprehensive—for cancellation terms.

• Make sure you’re covered regionally if you drive near high-risk zones.

• Consider temporary suspension of full coverage if saving short term, but reactivating before renewing.

• Set up emergency savings to handle unexpected losses if your car is damaged.

Final Takeaway

You might choose liability-only insurance if your car is old, you’re paying low premiums, and you’re comfortable risking some out-of-pocket cost. But if your car carries value, is financed, or operates in risky conditions, full coverage is safer—even if it costs more.

Want help reviewing your auto insurance options and aligning them to your car’s value and risk?
With over 30 years in auto and liability insurance and access to nearly 100 carriers, THAgency helps you select the right balance of coverage and cost. Send your request today—fast, clear, and no obligation.