Liability-Only vs. Full Coverage
Liability-Only vs. Full Coverage Auto Insurance: What’s the Difference?
When it comes to auto insurance, one of the first decisions drivers face is whether to carry liability-only coverage or full coverage. Understanding the differences—and what each actually protects—can help you make the right choice for your budget, vehicle, and peace of mind.
Liability-Only Coverage
What it is:
Liability coverage is the minimum insurance required in most states. It pays for injuries and property damage you cause to others in an at-fault accident.
What it covers:
Bodily Injury Liability (BIL): Medical expenses, lost wages, and legal costs for others you injure.
Property Damage Liability (PDL): Repairs or replacement for someone else’s vehicle or property.
What it doesn’t cover:
Your own car repairs
Your own medical expenses (unless you have separate coverage like MedPay or PIP)
Damage from theft, weather, or non-collision events
Best for:
Older vehicles with low market value
Drivers seeking the lowest legal premium
Those willing to pay out-of-pocket for their own vehicle damage
Full Coverage
What it is:
Full coverage is not a specific type of policy—it’s a combination of liability, collision, and comprehensive coverages. It protects both you and others in a much wider range of situations.
What it includes:
Liability coverage – Same as liability-only
Collision coverage – Pays for repairs or replacement of your car after an at-fault accident or collision with an object
Comprehensive coverage – Covers non-collision damage such as theft, vandalism, hail, fire, or hitting an animal
Best for:
Newer or higher-value vehicles
Cars with a loan or lease (lenders typically require it)
Drivers in areas with high accident, theft, or severe weather risk
Which Should You Choose?
If your car’s value is low, and the cost of full coverage exceeds what you’d gain in a claim, liability-only may make sense.
If your car is new, valuable, or financed, full coverage offers better financial protection.
Always consider your ability to pay for repairs or replacement out of pocket—if that risk would be a hardship, full coverage is the safer choice.
Bottom line:
Liability-only insurance protects others from your mistakes, while full coverage also protects your own vehicle from a variety of risks. The right choice comes down to the value of your car, your budget, and your comfort level with risk.