Introduction
Choosing between full coverage and liability auto insurance is one of the biggest financial decisions drivers make. While liability insurance is legally required in most states, full coverage provides broader financial protection.
In this guide, we’ll explain:
- What liability insurance covers
- What full coverage includes
- Average cost differences
- Which option is best for your situation
- How to reduce your premium
What Is Liability Auto Insurance?
Liability insurance covers damages you cause to others, including:
- Bodily injury
- Property damage
It does NOT cover your own car repairs.
Who Should Choose Liability Only?
- Drivers with older vehicles
- Cars worth less than $4,000–$5,000
- People looking for minimum legal coverage
What Is Full Coverage Auto Insurance?
Full coverage typically includes:
- Liability
- Collision
- Comprehensive
Collision covers accident damage to your vehicle.
Comprehensive covers theft, vandalism, fire, hail, or natural disasters.
Cost Comparison (2026 Average)
| Coverage Type | Monthly Cost | Annual Cost |
|---|---|---|
| Liability Only | $50–$80 | $600–$960 |
| Full Coverage | $120–$220 | $1,500–$2,500 |
Full coverage costs more but protects your own vehicle.
Best Auto Insurance Companies for Full Coverage
1. State Farm
- Strong nationwide network
- Reliable claims process
- Competitive full coverage bundles
2. Allstate
- Accident forgiveness option
- New car replacement add-on
- Safe driving rewards
3. GEICO
- Affordable full coverage rates
- Easy online management
- Strong discount programs
4. Progressive Corporation
- Good for drivers with violations
- Snapshot telematics savings
- Flexible policy customization
When Is Full Coverage Worth It?
Full coverage is usually recommended if:
- Your car is financed or leased
- Your car is less than 8–10 years old
- Repair costs would cause financial stress
- You live in high-theft or storm-prone areas
High-Risk Drivers: What Are Your Options?
If you have:
- DUI
- At-fault accident
- Multiple speeding tickets
- Poor credit
Your premium will increase significantly.
Companies like Progressive Corporation often offer more competitive rates for high-risk drivers compared to others.
How to Lower Full Coverage Insurance Cost
1. Increase Deductible
Higher deductible = lower premium.
2. Maintain Good Credit
Credit score strongly affects rates in most states.
3. Bundle Policies
Combine auto + home insurance.
4. Use Safe Driving Programs
Telematics programs track driving habits and reward safe behavior.
5. Remove Unnecessary Add-ons
Rental reimbursement and roadside assistance may not always be necessary.
Gap Insurance: Do You Need It?
If your car loan balance is higher than the vehicle value, GAP insurance covers the difference in case of total loss.
Usually recommended for:
- New car buyers
- Low down payment loans
Liability Limits: How Much Do You Need?
State minimum might look like:
- $25,000 bodily injury per person
- $50,000 per accident
- $25,000 property damage
However, experts often recommend:
- $100,000 / $300,000 / $100,000 limits
Higher limits protect your assets in serious accidents.
Frequently Asked Questions
Is liability insurance enough?
It’s legally enough in most states, but it won’t protect your own car.
Is full coverage mandatory?
Not by law, but lenders require it for financed vehicles.
Can I switch from full coverage to liability?
Yes, especially if your vehicle value drops significantly.
Which company is cheapest for full coverage?
Rates depend on your profile, but GEICO often offers competitive pricing.
Final Recommendation
Choose liability only if:
- Your car has low market value
- You can afford to replace it
Choose full coverage if:
- Your vehicle is valuable
- You want complete financial protection
- You cannot afford major repair costs
