When Is Liability A Bad Idea?

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Is it always better to have liability instead of full coverage? This article will help you know which car insurance choice is the best one for your situation.

What Is Liability Coverage?

In order to know when liability is a bad idea, you need to understand what it is. Liability auto insurance covers the other driver if you are at-fault in an accident. Most states require all drivers to have this type of insurance before they can drive on public roads. Naturally, this makes sense. You wouldn’t want someone to hit your car and not pay for the damage or resulting medical bills. That would be horrible! So when that happens, their insurance company has to pay for your restitution.

When Is Liability A Bad Idea
Why You Might Need Better Car Insurance

Why Would I Want More Than Liability?

Being the state minimum requirement, liability is tempting for most people’s first choice. However, there are times when it simply may not be enough coverage. For example, full coverage is what you would want if you are at-fault or there’s a natural disaster. If you are in a hit and run, uninsured coverage would pay to fix your car. Underinsured coverage can take care of you if the other driver’s insurance is insufficient.

In general, insurance is something you hope you’ll never need. Unfortunately, you have to buy it before you need it in order to use it. For example, you can’t add on full coverage insurance the day after you caused an accident to get your car fixed. You have to have it beforehand. People seem to overestimate their driving ability. What’s worse is that, sometimes, another driver causes the accident but you get the blame. This is horrible but know that even not-at-fault accidents can raise your rates.

When Liability Is A Bad Idea

Choosing liability is a bad idea when you or your neighborhood are accident prone. I just recently found out that two of my friends have all had accidents on the same highway where I had my first accident. In at least one of the cases, it was not my friend’s fault. During high school, my father accidentally rear ended a car when the bus in front of the two cars stomped on their breaks at the last second. Sadly, he later ended up junking the car. This all happened just weeks after he switched from full coverage to liability. If he had paid a little extra for just one or two months, he would still have this car 10+ years later.

When Liability Is A Liability
When Liability Is A Liability

Liability is a horrible idea when you still own money on your car. Full coverage isusually a requirement of your car loan. Also, can you imagine making your car payment without having a car? If you are somehow ruled at-fault, you may have to take on two car payments. Worse yet, you may not have a way to get to work and still have to make your payment each month.

You may also want to look into getting gap insurance. You can get it either when you purchase your car or with some auto insurance plans. It will pay the difference if you are upside down in your car loan and total your car.

If you are very risk-adverse, don’t get liability. If knowing that hail could damage your car while you sleep will keep you up at night, get full coverage.


Sometimes paying a bit more for piece of mind is worth it. If your car would be expensive to repair after a reck, you might need more than liability. Generally, if your car is less than 10 years old or financed, get full coverage. Otherwise, it may be worth it to go with liability and save the difference. However, Root Insurance gave me such a good rate, I ended up going for full coverage. Check out my review of them!

Do I Really Need Full Coverage?

Disclosure: The ads and links on this website may promote products. We may receive compensation. Always check with legal professionals before making any financial decision.

One of the biggest questions you will be asked while shopping for car insurance is wither you want liability or full coverage. This article will help you answer that question and make an informed decision for yourself.

Let’s Start With Liability Coverage

As the name suggests, liability covers the damage that you do to another driver. Not only does this save you from having to pay to fix someone’s car, it also covers their medical bills, up to a certain limit. The main reason people get liability insurance is actually because it is usually a requirement to legally drive. In several states, it is actually a felony to drive without car insurance. These states may put you in jail for driving for a day without current insurance.

Most other states will issue a ticket if you are caught driving without insurance. Either way, either of these actions will be on your driving record for years and increase the price when you actually get insurance again.

What Is Liability Insurance?
What Is Liability Insurance?

Many people opt for liability because it is the cheapest option to legally drive. Since no one really wants car insurance, they want to choose the cheapest option. However, if you are ever at-fault in an accident, liability won’t do anything for you. They won’t fix your car, and, depending on the state, may not cover any of your medical bills.

What Is Full Coverage?

Full coverage car insurance is collision and comprehensive coverage in addition to liability coverage. It usually ends up being about twice the price of only liability. Side note: some states also require personal injury protection. Collision insurance is for if you are in an accident and it is deemed your fault.

It is import to know that even some accidents you did not cause may list you as the driver at-fault. In those cases, you would either have to pay out-of-pocket to repair your car or buy a new one yourself. Since this can be a costly coverage for an insurance company, collision is usually one of the most expensive coverage options.

Do I Need Full Coverage On My Car?
Do I Need Full Coverage On My Car?

Usually, comprehensive must accompany collision coverage. This way, if there is wind, hail or other damages, the insurance company will pay to fix your car. It usually ends up adding less to the bill than collision but most carriers will not let you have one coverage without the other. With both, you can rest assured that no matter what happens, you should be able to have your car repaired.

Do I Need Full Coverage?

Great question! The easy answer is that if you have a car payment, you need full coverage. However, this question becomes harder after you pay off your car. Generally, if your car is under 10 years old or you live in an area with a lot of careless drivers, I would opt for full coverage. If your car would cost a lot to replace, get the full coverage.

If it ends up being only a few dollars more a month, get full coverage. I literally sleep better at night knowing that, even if I reck my car, I can have it fixed or replaced. Since I usually don’t have an extra $10,000 to spare, I have found the extra cost to be worth it.

Why Do I Need Full Coverage If My Car Is Financed?

Unfortunately, most car financiers require full coverage. Since newer cars are usually more expensive to insure, adding on full coverage makes your expenses go up even more. The reason is so that if you are in an accident, they won’t be left empty handed if you no longer make payments.

It never hurts to double check with the finance company before getting insurance. Generally, your premium will go down as the car deprecates in value. In fact, sometimes it makes more sense to buy an older car just to save money on your car insurance.

Is My Old Car Worth It?

If your car is old or worth less than about $3,000-5,000 I would opt for liability only. You can save up the money you save each month toward a downpayment on a new car. Let’s say you save $75 a month by opting for the state minimum requirements. Over a year with an accident, that’s $900!

Does My Old Car Need Full Coverage
Is My Old Car Worth It?

However, be careful that you actually save up the difference in cost. I would recommend using a separate checking or savings account to stay off the temptation to spend the extra money. Human nature is to spend more money as we see more in our checking account. The last thing you want to happen is to get liability to save money and then spend it all on something else.

If you only have liability and are in an at-fault accident, you won’t have a car. Without enough money for a new downpayment, you may be in a tough situation.

When Is It Worth It To Add Full Coverage?

Despite the above information, sometimes it makes sense to get full coverage. This is only when the difference in price is smaller enough to justify adding it on. With Root Insurance, I found that it barely added $10 a month to my bill. For piece of mind, my wife and I elected to add it on. For us, it was worth it to spend a bit more but not worry when we drive in the snow. However, if it were twice as expensive to add full coverage, we would have stuck to liability. Root is the only company I have seen who made it that close in price for full coverage.

Be sure to check out my full Root review right here!


So now you should know the difference between full coverage and liability insurance. Liability coverage is usually the only requirement for car insurance but it does vary from state to state. You will want to verify those requirements. If you have any questions, feel free to drop a comment below. Have you ever been glad you had full coverage after an accident?

Where Can I Compare Auto Insurance Quotes?

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Looking to see where can I compare auto insurance quotes? How many auto insurance quotes should I get? Save money by finding the best quote!

Where Can I Compare Auto Insurance Quotes?
Where Can I Compare Auto Insurance Quotes?

Why Should I Compare Auto Insurance Quotes?

Why is it important to compare auto insurance quotes? It is really worth my time? You should compare rates because insurance is a monthly bill. As long as you drive a vehicle, you need auto insurance. Because of this, even a small savings can amount to a large sum. $20 a month of savings can be an extra $240 in a year. For most people, the savings can be even larger.

When I switched from Allstate to Root, I got better coverages and saved over $100 a month! An extra $1,200 a year is a big deal for most people. Could you imagine saving that much with just a little bit of comparing prices? This is especially beneficial for retirees and middle class families. The smaller the wiggle room in your budget, the more important is it.

The issue with getting one quote is that you will never know if it is high or low. When I signed up for Allstate, I didn’t shop around. Unlike an iPhone or gallon of milk, insurance prices vary dramatically. One company may charge twice as much as another. Due to lack of accessibility, it is hard to compare prices. Generally, if you only get one quote, you lose.

How Long Should I Spend On Comparing Auto Insurance Quotes?

Generally, people are busy. Of course, getting each quote takes time. However, it’s worth it to spend the time to get each quote. To save time, some people like to go to insurance agents who represent several companies. However, there can be some issues in doing that. Insurance agents have no fiduciary duty to you. If they have two rates in front of them, they may give you whatever pays them more. There are definitely good agents out there but be careful.

Also, sometimes carriers’ rates may be more through an agency. Did you see the small print on the Progressive ad? It usually says that rates vary by how you buy. In the agency where I worked, people often said they couldn’t find lower rates for themselves. If they can’t do that for themselves, why would they do that for you?

How Many Quotes Should I Get?

The short answer is as many as possible. Most of the time, I recommend 10-15 or more quotes. This will give you a good idea as to about what you will pay. This should also be enough to find one of the cheapest rates in your area. Of course, there is always a chance there will be a lower rate. If you are finding a huge range of quotes, keep looking. However, if all the rates are close ($5-25) then you are probably okay to stop looking.

Just remember that savings will add up over time. For example, if you make $25 an hour, it may not seem worth your time. However, even if searching only saves you $25 a month, that would be worth 12 hours of your time.

Don’t give up until you get those 10+ quotes!

Where Can I Compare Auto Insurance Quotes?

There are several comparison quote websites. This quotes are usually good but not perfect. There also usually get paid for generating leads. I would try not to give them a cell phone number, if possible. You can check out Insurify, NerdWallet, Gabi, and The Zebra.

However, once you find a good quote, I would go straight to the company’s website to sign up. Make sure they aren’t raising your rate by using a comparison service.


Now you know why you should compare auto insurance quotes, how long you should spend, how many quotes to get and where you can compare several quotes. Remember to always be careful and double check everything. An independent agent or comparison website may have a cost. However, they may also save you time and money. Always do your research.

Personally, I always go with Root Insurance. I have had the best experience with them. If you use my link, they’ll actually give us both $50, even if you don’t sign up. You should try them and let me know what you think in the comments!

5 Reasons Root Insurance May Be The Best Insurance Company

Disclosure: The ads and links on this website may promote products. We may receive compensation. Always check with legal professionals before making any financial decision.

Have you seen the ads or heard about Root Insurance? What makes them different from other insurance carriers? Can I really save 62% off of my auto insurance? Here is my Root Insurance Review!

Number 1: No Commissioned Sales Agents

When you buy car insurance, about 5-15% of that is just a paycheck for your insurance agent. There is nothing wrong with sales agents making a living but think about how much you could save by cutting out the middle man. Root doesn’t use use insurance agents to sell their products. Instead, they rely on internet marketing and word-of-mouth to find new clients. In fact, if you want to get a free $50, just use my link to get a quote and they’ll send you a gift card even if you don’t sign up for their insurance. Marketing this way allows them to keep their costs down and pass the savings on to you.

Number 2: Root Insurance Only Insures Good Drivers

Because only a small portion of drivers drive up the cost of the insurance company paying out for accidents, Root Insurance decided to not cover the types of drivers who are more likely to cost the company money. This is another way Root saves money which lets them keep their rates low.

Root Insurance Review

Number 3: Your Rate Is Based On Your Driving

Although several companies now will give you discounts for letting them track how you drive, Root is the only one I know of where they factor that discount into your quote. They do it through just an app on your phone. No worrying about having to return expensive equipment or plugging something into your car. You also get to have that savings during your very first month with them.

Number 4: Root Insurance Has Great Customer Service

Unfortunately, I did get in a car accident after switching to Root. I was worried at first but they took good care of me. You take photos of the accident right inside the app and upload it to someone who will help with your case. They can email, call or text you so it’s easy to be in touch with them. Everyone I talked to was US-based so there isn’t any cultural or linguistic differences to overcome in communicating with them.

Root Insurance Customer Service

Number 5: Root Has The Lowest Car Rates I’ve Ever Seen

When working in insurance, I could check rates with 12 different carriers. Root beat them all. It wasn’t even close. I believe Progressive Insurance was the next best at more than twice the price for just liability vs having full coverage with Root. I ended up saving more like 70+% on car insurance when I switched to them. Really, just get a quote. It usually takes a couple weeks after you start it. Either way, you’ll get a $50 gift card for just having it run in the background on your phone. If their rates aren’t better, you don’t have to pay them anything but you still get the $50. What do you have to lose other than maybe a bit of battery charge?

Download The App And Take Root For A Spin!

That’s it for my Root Insurance review!

Top 5 Reasons To Never Get Geico Insurance

Disclosure: The ads and links on this website may promote products. We may receive compensation. Always check with legal professionals before making any financial decision.

In this article, you will learn the top 5 reasons why you should say “no” to Geico Insurance for your Autos, House, or Renters Insurance. Make sure you read this before signing up for insurance!

Top 5 Reasons To Never Get Geico Insurance
Top 5 Reasons To Never Get Geico Insurance

Reason Number 1 To Never Get Geico Insurance: Your Geico Quote Isn’t Real

The jingle “15 Minutes Could Save You 15% or more on Car Insurance” may mislead some viewers. It’s true that you can get a quote in about that amount of time but it has some major drawbacks. The biggest is that because they often don’t run your driving record until after you pay for your first month. I know several people who signed up for Geico and are shocked when that 2 year old speeding ticket or 4 1/2 year old not-at-fault accident they forgot about shows up on their record and their rate skyrockets.

Reason Number 2 To Never Get Geico Insurance: You Could End Up Owing Geico Money

Because they end up running your reports later, if there is an up-charge in your rate, you will usually find out about it the following month. Hypothetically, let’s say the quote is for $85 a month for your car. After you pay that, get insured and drive with their insurance for a month, Geico finds an accident on your record from two years ago. Not only will your insurance go up to, say, $350 a month but now they will charge you the difference for the first month during your second month. You were expecting a bill for $85 but instead you have a bill for $615! If your bank account doesn’t have that, you’ll end up with an overdraft fee, canceled insurance and you’ll still owe Geico $265 for that first month! This may actually prevent you from being able to get car insurance from another carrier.

Reason Number 2 To Never Get Geico Insurance: You Could End Up Owing Geico Money
Reason Number 2 To Never Get Geico Insurance: You Could End Up Owing Geico Money

Number 3: You’ll Pay For Their Ads

We all have our favorite television commercials but, remember, the customers of the business are usually footing the advertising bill. Geico spends so much on advertising that their rates are higher than a company that doesn’t have that expense. If you find a Geico ad annoying, be sure to thank your neighbor for paying for it.

Reason Number 4 To Never Get Geico Insurance: They May Classify Incidents The Wrong Way

This comes from an experience I had selling car insurance over the phone. I was speaking to a man who said he had a collision incident of running into a deer about 2 year prior to calling me for a quote. I was ready to set him up with a SafeCo policy that would’ve ended up giving me about a $120 commission. All excited to save money on his insurance, he gave me permission to run his record. I ran his driving record and saw that the incident was characterized as an at-fault car accident. Because he was a high risk driver, SafeCo ended up rejecting him completely! Either he wasn’t telling the truth or someone at Geico messed up on paperwork.

Reason Number 4 To Never Get Geico Insurance: They May Classify Incidents The Wrong Way
Reason Number 4 To Never Get Geico Insurance: They May Classify Incidents The Wrong Way

Reason Number 5 To Never Get Geico Insurance: Their Rates Aren’t Always Competitive

Geico is the second largest auto insurer in the US. Some people have found their rates to be some of the lowest. They can keep rates low because it is unlikely they will have to pay out for many accidents compared to their number of policyholders. However, whatever they charge you above costs are profit. I have often found several smaller insurance carriers to have much better rates. Smaller insurance carriers often don’t have billions to spend on national advertising. To attract customers, they often attempt to have the lowest possible rates. It usually doesn’t matter which car insurance company you chose. Because insurance companies are highly regulated requiring them to have huge cash reserves. The only thing that really matters is the cost of their premium.


That’s it! Those are my top 5 reasons to never get Geico insurance. What do you think? If you’ve had a great experience with them, be sure to leave a comment about it. Of course, getting a quote with them shouldn’t hurt but be weary that it could increase at a later date!

If you want to know which company I recommend for car insurance, read my review here!

Or just get a quote with Root Insurance today!