Liability-only (auto)
Informal label for auto insurance without comprehensive and collision on your vehicle.
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.
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