Liability vs full coverage: what you actually need
What each one pays for, who it protects, and how to choose between them.
Liability protects other people
Liability insurance pays for injuries and damage you cause to others, up to your limits. It does not pay to fix your own car or treat your own injuries (other covers, such as PIP or medical payments, do that where they apply).
"Full coverage" adds your own car
"Full coverage" is not an official policy type. It usually means liability plus collision (your car after a crash) and comprehensive (theft, weather, fire, animals, glass). Each of those two comes with a deductible.
How to choose
- Financed or leased car: your contract almost certainly requires full coverage.
- Newer car you could not replace from savings: full coverage is usually worth it.
- Older car of low value: liability with good limits may be enough — compare the yearly cost of the extra covers with what the car is worth.
- Either way, consider limits above your state's minimum and uninsured / underinsured motorist cover.
Ready to compare?
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