"Liability only" and "full coverage" are two of the most common ways people describe a car insurance policy. Here is what each one usually means.
What liability-only covers
Liability insurance pays for injuries and property damage you cause to other people. It does not pay to repair your own car or to treat your own injuries (unless you add other coverages).
What full coverage usually includes
"Full coverage" is not an official insurance term, but it usually means liability plus:
- Collision — repairs to your car after a crash, no matter who caused it.
- Comprehensive — theft, vandalism, weather, fire, falling objects and animal collisions.
Who usually needs full coverage?
If you have a car loan or lease, your lender will almost always require collision and comprehensive. Drivers with newer or higher-value cars often choose it too.
When liability-only may make sense
If your car is paid off and older, and you could afford to repair or replace it yourself, liability-only may be enough. Compare the cost of the extra coverage with what your car is worth.
What to ask your agent
- What exactly is included in the "full coverage" option?
- What deductibles are available for collision and comprehensive?
- Do I need rental or roadside coverage too?
This guide is for general information only and is not insurance or legal advice. Coverage, requirements and availability vary by state and insurer.