Full Coverage vs Liability Insurance: Which One Saves You More?
When shopping for auto insurance, one of the most common questions drivers ask is: Should I choose full coverage insurance or liability insurance? Understanding the difference between these two types of policies is essential for protecting your vehicle while keeping your insurance costs under control.
Many drivers want the cheapest car insurance possible, while others prefer maximum financial protection. In this guide, we will explain the differences between full coverage vs liability car insurance, their benefits, average costs, and which option can actually save you more money in the long run.
What Is Liability Car Insurance?
Liability insurance is the minimum car insurance coverage required by law in most states. It protects other people financially if you cause an accident.
A liability policy typically includes two main components:
Bodily Injury Liability
This coverage pays for medical expenses, lost wages, and legal fees for people injured in an accident you cause.
Property Damage Liability
This coverage pays for damage you cause to another person’s vehicle or property.
However, liability insurance does not cover your own vehicle repairs after an accident.
Because it offers limited protection, liability insurance is usually the cheapest type of auto insurance available.
What Is Full Coverage Car Insurance?
Full coverage car insurance is a broader policy that includes liability insurance plus additional protection for your own vehicle.
A full coverage policy generally includes:
Liability Coverage
Covers damage or injuries to other people.
Collision Coverage
Pays for repairs to your car after an accident, regardless of who caused it.
Comprehensive Coverage
Protects your vehicle from non-collision incidents such as:
- Theft
- Fire
- Vandalism
- Flood damage
- Falling objects
- Natural disasters
Because it offers significantly more protection, full coverage insurance typically costs much more than liability insurance.
Average Cost: Full Coverage vs Liability Insurance
The cost difference between these two types of policies can be substantial.
Liability Insurance Cost
Average monthly premium: $40 – $80
Liability coverage is popular among drivers looking for cheap car insurance quotes because it keeps monthly premiums low.