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Ask Professor Lee: Is Liability-Only Car Insurance Right for Me?

Dr. Ryan Lee

Liability-only insurance only covers the damage you are responsible for causing to other people’s cars, property, medical bills, etc. Liability-only insurance does not pay to fix your car if you cause a crash (this is collision insurance). It does not pay to fix your car if a tree falls on it (this is comprehensive insurance).

So why would anyone get liability-only insurance? It’s a lot less expensive. If your car is older and you own it outright (not currently making monthly payments on a loan or lease), liability-only insurance might be the right choice for you. If your car is damaged and it isn’t worth fixing, it may be better get a new car.

Read more about liability-only car insurance on