Why is liability insurance so cheap?

Liability insurance is typically inexpensive because it covers only damages or injuries caused by you to someone else. This type of coverage does not include protection for your own property or injuries. Therefore, the risk to the insurance company is lower compared to other types of insurance like comprehensive or collision coverage. Additionally, liability insurance is required by law in most states, which means more people are purchasing it, leading to lower costs. Overall, the limited coverage and high demand make liability insurance more affordable for policyholders.

Posted by Alyssa DiCrasto

Alyssa uses her many years of experience writing about complex industries to research and create clear content that makes insurance easy to understand. She has been with Rate Retriever since its beginning, establishing our strict editorial policy and directing our comparison experience.

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