Full Coverage vs. Liability Insurance: Making the Right Choice
Understanding the difference between full coverage and liability-only insurance is essential for choosing the right car insurance policy.
While liability insurance is the minimum required in most states, full coverage provides additional protection for your vehicle. The right choice depends on your vehicle's value, your financial situation, and your risk tolerance.
Liability Insurance
Liability insurance covers damage and injuries you cause to others in an accident. It does not cover damage to your own vehicle.
What's Covered:
- Bodily injury to others
- Property damage to others' vehicles/property
- Legal fees if you're sued
Pros:
- Lower premiums
- Meets state minimum requirements
- Protects your assets from lawsuits
Cons:
- Doesn't cover your vehicle repairs
- No protection if you're at fault
- Limited coverage
Full Coverage Insurance
Full coverage typically includes liability plus comprehensive and collision coverage, which protect your vehicle from various types of damage.
What's Covered:
- Everything in liability insurance
- Collision coverage (accidents)
- Comprehensive coverage (theft, vandalism, weather, etc.)
- Uninsured/underinsured motorist coverage
Pros:
- Complete protection for your vehicle
- Coverage regardless of fault
- Peace of mind
Cons:
- Higher premiums
- Deductibles apply
- May not be necessary for older vehicles
Which Should You Choose?
If you have a newer or valuable vehicle, full coverage is typically recommended. For older vehicles worth less than your deductible, liability-only may be sufficient. A licensed insurance agent can help you determine the right coverage for your situation.