Full Coverage vs. Liability: What’s Right for Your Car?
Car insurance can feel like alphabet soup. One friend swears by “full” coverage, another says basic liability is plenty. You just want to know which choice keeps you protected and makes sense for your wallet.
Liability pays for damage you cause to others, while full coverage (liability + collision + comprehensive) also pays for damage to your car. If your car is new, financed, or worth more than you can easily replace, full coverage usually wins. If it’s older and paid off, liability may be enough.
In this guide, we’ll break down each type, compare costs side-by-side, flag common pitfalls, and finish with simple steps to decide today.
What Counts As Liability Coverage?
Liability is the base layer every state (except New Hampshire) requires. It splits into:
- Bodily injury liability – covers the other driver’s medical bills if you’re at fault.
- Property damage liability – pays to fix the other person’s car, fence, or storefront.
Liability never pays to repair your own vehicle. Think of it as “I broke it, I’ll pay for yours.”
What Does “Full Coverage” Mean?
Insurers use the term loosely, but it typically bundles:
- Liability (the same limits you picked above).
- Collision – fixes or replaces your car after a crash, no matter who caused it.
- Comprehensive – covers non-crash damage: theft, fire, flood, hail, falling trees, hitting a deer.
Lenders require collision + comprehensive on leased or financed cars until the loan is paid.
Add-Ons That May Ride Along
- Medical payments or personal injury protection (PIP)
- Uninsured/under-insured motorist coverage
- Roadside assistance or rental reimbursement
These extras aren’t strictly “full” coverage but often appear in quotes.
Liability vs. Full Coverage At A Glance
| Feature | Liability Only | Full Coverage |
| Pays for other drivers’ injuries | ✅ | ✅ |
| Pays for other driver’s car/property | ✅ | ✅ |
| Pays to fix your car after a crash | ❌ | ✅ |
| Pays for theft, fire, vandalism | ❌ | ✅ |
| Required by lender/lease | ❌ | ✅ |
| Average cost increase* | – | +70-100% |
*National average; your rate may differ by age, location, driving record, and vehicle.
Factors to Weigh Before Deciding
- State requirements
Every state posts minimum liability limits. Meeting that floor keeps you legal; exceeding it shields your savings in a lawsuit.
A serious wreck can rack up six-figure hospital bills. If your limit runs out, creditors come after your bank account, wages, or home equity.
- Vehicle value
A 10-year-old sedan worth $3,000 may not justify $600 a year in collision premiums. A new SUV worth $40,000 definitely does.
- Your budget for repairs
Ask yourself, “Could I write a check tomorrow if my car were totaled?” If the answer is no, collision + comprehensive buys peace of mind.
- Your daily mileage and parking situation
Long commutes or street parking increase risk. More risk tilts the scale toward full coverage.
Quick Tip: Compare the annual cost of collision + comprehensive to your car’s current market value. If premiums reach 10% of value, dropping down to liability often makes sense.
Conclusion
In short, liability keeps you legal and pays others; full coverage shields your own ride from crashes and calamities. Pick liability only when your car’s value or your bank balance makes repairs a manageable setback. Choose full coverage if losing the vehicle would leave you stranded financially.
When you’re ready for a quote or a second opinion, reach out to Clint Birkenbuel – Farmers Insurance. He can sort out the numbers and show how each option fits your budget.
FAQ
Will my rates drop if I switch from full coverage to liability?
Yes, but only on the collision + comprehensive portion. Liability limits, location, and driving record still affect the final price.
Can I pause full coverage in winter and add it back in spring?
Some insurers allow seasonal changes, but a lapse could leave you exposed to theft or weather damage. Always ask first.
Does liability cover passengers in my car?
Bodily injury liability typically pays for injuries to passengers in other vehicles. Medical payments or PIP covers your own passengers.
Is uninsured motorist coverage necessary if I already have full coverage?
Collision fixes your car after a hit-and-run, but uninsured motorist bodily injury pays for your medical bills when the at-fault driver has no insurance. It’s usually inexpensive and worth adding.
How often should I review my coverage?
Review at least once a year or after major life changes—moving, buying a new car, or adding a driver.