Liability vs. Full Coverage: Which One Do You Really Need?

What Is Liability Insurance?

Liability insurance is the most basic type of auto coverage and is required in most states. It helps pay for damage you cause to other people, their vehicles, or property. It does not cover your own car's repairs or medical bills.

• Bodily Injury Liability: Covers medical costs and lost wages for others involved in an accident you caused.
• Property Damage Liability: Covers damage to someone else's vehicle or property.

What Does Full Coverage Include?

Full coverage is not a single policy but a combination of coverages. It typically includes:

• Collision Coverage: Pays for repairs to your vehicle after an accident, regardless of fault.
• Comprehensive Coverage: Covers non-collision events like theft, fire, vandalism, or weather damage.
• Uninsured/Underinsured Motorist Protection: Helps if the other driver can’t cover the damage they caused.

How to Choose the Right Coverage

It comes down to a balance between protection and budget. Ask yourself:

• Is my car new, financed, or leased? (Full coverage may be required)
• Could I afford to replace or repair my car out of pocket?
• What is the current value of my vehicle?

Liability-only may save you monthly — but could cost more after an accident. Full coverage offers peace of mind, especially for newer or high-value vehicles.

Final Thoughts

Choosing between liability and full coverage isn’t just about cost — it’s about risk. Review your needs annually and don’t hesitate to shop around for better rates. The right coverage ensures you're protected when it matters most.