Liability auto insurance is one of the two basic forms of car insurance. In most states, liability auto insurance is also the absolute minimum coverage that you, a car owner, must carry in order to legally operate a vehicle. Liability insurance protects you from incurring out-of-pocket expenses in accidents that are your fault. While liability insurance may be sufficient coverage for some situations, you’ll more than likely be more comfortable with the fuller protection offered by collision or comprehensive coverage.

What exactly are you protected from when purchasing liability auto insurance? To understand this, it will be helpful to note that there are two kinds of damage possible in an accident: Bodily injury and property damage. So, when you are considering liability auto insurance, you will want to know the amount of coverage offered for each category. When checking out a policy, look for three numbers separated by slashes, for example: 15/30/5. The first number in the series refers to the bodily injury amount available for one person injured in an accident ($15,000); the second number refers to the bodily injury amount covered for all of the people injured in an accident ($30,000); the third number refers to the amount of the property damage compensation offered by the liability auto insurance policy ($5,000). The numbers used in the previous example are somewhat standard for the minimum liability auto insurance coverage required by most states. If you consider just how little $15,000 will go toward paying medical expenses or $5,000 would go toward repairing a car, it is obvious that a 15/30/5 policy might not be adequate to insure you if you’re involved in a major accident.

Another factor for you to consider when purchasing a policy which provides only liability coverage is damage that may occur to your own vehicle in an accident. Liability auto insurance won’t pay anything toward the repair or replacement of your car. A liability auto insurance policy also does not reimburse you for damage or loss due to being hit by an uninsured driver, being involved in a hit and run accident or having a car stolen. Of course, if your vehicle is an older model and you can approximate that the value of the car is less than the premiums that you would need to pay to cover it, then a strict liability auto plan could prove beneficial. Otherwise, it would be a wise choice to forego liability auto insurance and purchase something a little more comprehensive.

While liability auto insurance is well-suited for car owners who own older vehicles or don’t drive on a daily basis, adding collision coverage is not much more expensive when considering the risks involved in hitting the roads. Read the auto regulations for your state to best determine which plan would be most suitable for you, and ensure that you do have at least the minimum coverage available. Most insurance agents are quick to inform you of your options.

Tristan Andrews is a writer for California Car Insurance.

Tristan Andrews