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Liability-only (auto)

Informal label for auto insurance without comprehensive and collision on your vehicle.

Educational only. PolicyPlain does not sell insurance and does not provide insurance, legal, or financial advice. Coverage rules and prices vary by state and insurer. Read our full disclaimer.

Plain definition

Liability-only auto insurance means you carry bodily injury and property damage liability (and any state-required coverages) but not physical damage coverage on your own car. You self-insure repair or replacement if you cause a crash or suffer a non-liability loss.

Why it matters

Dropping comp and collision lowers premium, but one at-fault accident or hailstorm can cost more than years of saved premium if the car still has meaningful value.

Example

You own an older car outright and choose liability-only. You rear-end someone; your PD liability fixes their car, but your bent bumper is your expense.

Common misunderstanding

Liability-only is not the same as state minimum limits—you can have liability-only with higher BI/PD limits and still skip comp and collision.

Policy language always controls. This is educational content, not advice. See our disclaimer.