Whether it is a brand new vehicle or an old clunker, the state of North Carolina requires that every car owner have automotive insurance coverage. With the economy being so unpredictable, some motorists are opting to only get liability insurance. Liability insurance, which is the minimum amount of coverage required by the state, has certain pros and cons. Here are some important facts about liability car insurance.
Least expensive insurance
For drivers that are trying to save some cash, acquiring only liability coverage could be a legitimate option. In most cases, liability insurance is hundreds of dollars less expensive than collision or comprehensive insurance coverage. If the motorist owns a vehicle that is on its last leg, getting liability insurance could prove to be the most cost-effective approach.
Insurance company will not pay for repairs
In the event of a car accident, liability insurance coverage will not pay for any damages to the car owner’s vehicle. Depending on the severity of the damage, the car owner risks losing thousands of dollars due to the expense of the repairs. This is a very important concern for owners of classic and rare vehicles.
Does not cover medical expenses
If the car owner is involved in an accident, he or she must pay for their own medical bills. If the car owner is deemed to be responsible for the bodily injuries of another driver, the liability insurance coverage will provide up to $30,000 to the other party. If the costs of the medical bills exceed that amount, the car owner must foot the rest of the bill.
Most lenders do not allow liability insurance
If a car owner leases a vehicle or purchases a vehicle via a bank loan, the lender will usually require the car owner to purchase a more extensive insurance policy. Since the car owner has yet to pay for the loan in full, the lender does not want to risk losing any money due to a car accident.
Does not cover “acts of God”
If an unforeseen event such as a natural disaster damages the car owner’s vehicle, the insurance company is not responsible. Liability insurance does not cover such things such as a tree falling onto the vehicle or someone spraying graffiti on the exterior. However, a Charlotte auto insurance policy that includes comprehensive coverage will protect against these unpredictable occurrences.