Full Coverage vs. Liability Only: Which Auto Insurance Do You Need?

The Great Coverage Debate

One of the most common questions drivers face is whether to carry full coverage or stick with liability-only auto insurance. The answer depends on your financial situation, the value of your vehicle, and your tolerance for risk.

What Is Liability-Only Insurance?

Liability insurance covers damage you cause to other people and their property. Every state requires some minimum amount. It does NOT cover damage to your own vehicle.

What Is Full Coverage?

Full coverage generally means liability plus comprehensive coverage (theft, vandalism, weather) and collision coverage (damage in an accident regardless of fault).

When Liability-Only Makes Sense

Consider it if your car is worth under $4,000-$5,000, you have savings to replace it, your premiums exceed 10% of the car value, or you own the car outright.

When You Need Full Coverage

You need it if you have a loan or lease, your car is worth more than you can replace out of pocket, you depend on your vehicle for work, or you live in a high-risk area.