Liability vs. full coverage car insurance

Last updated: November 12, 2026

Liability-only insurance pays for damage you cause to other people. "Full coverage" usually means liability plus collision and comprehensive, which also pay to fix or replace your own car. Full coverage costs more, and whether it's worth it mostly comes down to what your car is worth.

What liability covers

Bodily injury liability pays for other people's medical bills and lost wages when you're at fault. Property damage liability pays to repair their car or anything else you hit. Almost every state requires it, and it never pays for your own car or your own injuries.

What "full coverage" adds

• Collision pays to repair your car after a crash, no matter who caused it, minus your deductible.
• Comprehensive pays for theft, vandalism, hail, flooding, fire, falling objects and hitting an animal, minus your deductible.

"Full coverage" isn't an official policy type. Ask exactly which coverages and limits a quote includes.

When you need full coverage

• You have a car loan or lease. Lenders almost always require collision and comprehensive.
• You couldn't afford to repair or replace your car out of pocket.
• Your car is newer or worth more than a few thousand dollars.

When liability-only can make sense

If your car is paid off and worth little, the extra premium for collision and comprehensive, plus the deductible, may add up to more than the car is worth. A common rule of thumb is to look at dropping them when the yearly cost is more than about 10% of the car's value.

Don't skimp on liability limits

Whichever you choose, state minimum liability limits are low. One serious accident can cost far more, and you can be personally responsible for anything over your limits. Raising limits often costs less than people expect.

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