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Do I need auto liability insurance if my car is paid for?

Auto liability insurance is required in almost every state. However, drivers are often confused about the purpose of auto liability insurance. Liability insurance is designed to cover property damage, personal injury, and damage to someone else’s car. It’s not designed to cover your car, personal injuries, or property.

If you want coverage for your car, you will need to purchase insurance for your car. Our Oak Ridge, NC team at Oak Ridge Insurance Services can help insurance people get the coverage they need to meet their unique needs.

Liability vs Full Coverage Auto Insurance?

Most states require drivers to carry auto liability insurance. All North Carolina drivers must carry liability insurance. However, liability coverage is designed to protect the other driver when you cause an accident or personal injury. Liability provides no personal injury or property damage coverage for you or your car. 

Conversely, full coverage auto insurance covers both you and other drivers. Full coverage insurance includes liability coverage as well as coverage for your car and personal injuries. Full coverage insurance also includes coverage for theft, vandalism, and some natural disasters. 

Do I need auto liability insurance if my car is paid for?

Yes. You still need liability insurance if your car is paid for. Liability insurance doesn’t cover damage, personal injury, or property damage for you, but instead for the other driver. It has no benefit beyond liability protection for you.

However, if you finance your car, your lender will more than likely require you to carry both liability insurance as well as full coverage insurance to protect your car. Auto liability insurance is required in most states. However, it provides no coverage beyond liability protection for the driver.

Contact Us Today

If you have questions regarding liability insurance, call us at Oak Ridge Insurance Services in Oak Ridge, NC. We’d be happy to answer your questions. 

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