2024-01-01 · auto, personal, liability, full-coverage

Liability vs Full Coverage Auto Insurance

Overview

Liability-only insurance covers damage and injuries you cause to others, while full coverage adds comprehensive and collision to protect your own vehicle. The right choice depends on your car’s value, loan status, and financial risk tolerance.

Liability-only coverage basics

• Bodily injury liability: pays for injuries you cause.
• Property damage liability: pays for damage to others’ property.
• Lower premiums: cheapest option but limited protection.

Full coverage basics

• Comprehensive: covers theft, vandalism, and weather events.
• Collision: repairs your car after accidents.
• Higher premiums: more protection but higher cost.

How to decide

1. Check vehicle value versus premium cost and deductible.
2. Consider lender requirements if your car is financed or leased.
3. Assess savings to see if you can replace the car after a loss.
4. Review your risk tolerance for out-of-pocket repairs.

Tips for right-sizing coverage

• Keep liability limits high even with older cars.
• Drop collision if the deductible is close to the car’s value.
• Compare quotes annually as your vehicle depreciates.

Frequently asked questions

Can I have liability-only with a loan? Usually no. Lenders typically require comprehensive and collision.

Does full coverage include roadside assistance? Not always. It’s usually an optional add-on.