What Is Liability Insurance?
Liability insurance is the minimum coverage required by law in most states. It only covers damage or injuries you cause to others—not yourself or your car.
- Bodily Injury Liability: Covers medical expenses if you injure someone in an accident.
- Property Damage Liability: Pays for damage you cause to another vehicle or property.
What Is Full Coverage Insurance?
“Full coverage” isn’t a technical term, but typically includes:
- Liability Coverage
- Collision Coverage: Pays for damage to your car after an accident, regardless of fault.
- Comprehensive Coverage: Covers non-collision events like theft, fire, vandalism, or weather damage.
Cost Comparison
Liability-only insurance is significantly cheaper, often by 40–60%. But it offers limited protection, especially for your own vehicle.
When to Choose Liability-Only
- Driving an older car with low value
- You can afford to repair or replace your car yourself
- You want the lowest monthly premium possible
When to Choose Full Coverage
- You lease or finance your car (usually required)
- You drive a newer or high-value car
- You want protection against theft, vandalism, or natural disasters
Conclusion
Choosing between full coverage and liability-only insurance depends on your car’s value, financial situation, and risk tolerance. If you’re trying to save money, liability might be enough—but full coverage offers greater peace of mind. Make sure to evaluate your needs before making a decision that affects your safety and your wallet.