You deserve great car insurance, no matter your finances or the age of your vehicle. But great car insurance can mean different things to different people. For some, it’s full protection no matter what happens. But for others, it’s the cheapest insurance they can find.
This is why you have options for coverage. Two of those options are liability-only coverage, while another is what’s commonly referred to as “full coverage”. But what do they mean, and which is better?
We’ve got the answers and more, next.
Free Car Insurance Comparison - Save up to 30%
No junk mail. No spam calls. Free quotes.
No Signup required
If you’re looking to save on car insurance costs, you have likely come across the term liability car insurance. Simply put, it’s coverage for only the damage you cause in an accident—essentially, the damage you’re liable for.
Liability insurance is one bucket of coverage in a car insurance policy. It covers your liability for bodily injuries and property damage in an at-fault accident. This means that if you cause an accident, you and your insurance are on the hook for the medical costs of the other party and any property damage you caused, such as damage to their vehicle.
In most states, you need to have at least liability coverage to get behind the wheel. You might also hear it referred to as “minimum coverage”, because it’s the bare minimum of car insurance you legally need to have to drive.
Keep in mind, liability-only coverage only protects the other driver, not you. If you want more comprehensive coverage, next we’ll explore full coverage and what it entails.
On the flip side, you can opt for full coverage car insurance. This is a popular term in the insurance industry and it refers to the following buckets of coverage:
With full coverage, you’ll get the same liability coverage that’s included in liability-only insurance, but you’ll also get protection for your vehicle in the form of collision and comprehensive coverage. Collision protects you from damages resulting from colliding with another vehicle or a stationary object. Comprehensive protects your vehicle from anything else, like hitting an animal, weather-related damage, theft, vandalism, and more.
That’s the extent of full coverage, but there’s more coverage you can choose. If the above list doesn’t feel like enough protection, keep reading.
Free Car Insurance Comparison - Save up to 30%
No junk mail. No spam calls. Free quotes.
No Signup required
We’d be remiss if we didn’t help you explore all of your car insurance coverage options. While some people might be happy with liability-only insurance, others might want as much protection as they can get, and that’s okay.
Car insurance can be thought of as a buffet; as long as you’re meeting your state’s minimum car insurance coverage, you can pick and choose add-ons that make sense for you and your wallet.
Here are some common add-ons (also known as riders or endorsements) you can choose from:
Keep in mind, minimum coverage varies by state. That means that in some states, coverage like uninsured motorists or MedPay are actually required as part of the state minimums to drive. You can find more info on minimum coverage by state here.
These are just some of the options available to you in your car insurance buffet. Whether you fill up your plate or save room for later, the choice is yours when it comes to your coverage.
You know you have options when it comes to car insurance coverage. But for many of us, the choice often comes down to cost. If that sounds like you, or you just want to get an idea of what to expect between the two coverage types, here are some fast facts you can use:
In most states, your gender will also play a role in how much you pay. Some states, like California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania, don’t allow insurers to factor in gender. But outside of these states, you’ll pay less on average if you’re female. This is because women are less likely to engage in risky driving behavior.
Here are some numbers to put it into perspective:
But that’s not all. Where you live, down to your county and zip code, affect the premiums you’ll pay. Urban cities typically pay more in car insurance, since the risk of an accident is higher than in rural counties. Here are some average costs by state to give you an idea:
These are just some examples to help give you an idea of how much average costs can vary by location. If you’re ready to see how much you can expect to pay in your state, go ahead and get access to quotes here.
Great question. The answer to this will depend on how much you’re looking to spend and how much protection you want from your car insurance.
To recap:
If you’re looking to spend as little as possible on car insurance and you have an older vehicle, you might be fine with liability-only coverage. Or you might want liability only if you don’t own a vehicle but drive one occasionally (find out more on non-owner car insurance here).
But if you want more protection and have a nicer car, you might be better off with full coverage. If you’ve already got a policy in place but are itching to make a change, read this first.
Only you can choose which option is right for you. Getting a sense of the costs for both options can help you decide which route to go, so go ahead and click here for access to free quotes.
Free Car Insurance Comparison - Save up to 30%
No junk mail. No spam calls. Free quotes.
No Signup required
Now that you’re an expert on the difference between liability and full coverage insurance, you’re ready to set up your own coverage. The choice for coverage is yours, as long as you’re meeting your state’s minimum coverage requirements (which is usually at least liability).
Remember: liability-only coverage only protects the other driver from bodily injuries and their vehicle from property damage in an accident you caused. Full coverage also protects your vehicle from damage in a number of scenarios.
Ready to explore your options? Click here for access to free quotes fast and you’ll be on the road to great insurance coverage.
We’ve got you covered.
Margaret Huntley Margaret Huntley is a creative writing and philosophy student at Western University. She has been working as a freelance writer for over two years and has written about everything from insurance, to poker, to health and wellness for international businesses.
