Choosing between full coverage and liability-only? We break down what each covers, how much it costs, and who should choose which option in 2025.
Quick Summary: Full coverage offers broader protection, including your own car’s damages. Liability-only meets legal minimums but doesn’t cover your car. Full coverage is ideal for newer vehicles and financed cars. Liability-only fits older cars or low-budget needs.
What Is Liability-Only Insurance?
Liability insurance covers the damages you cause to other people or their property in an accident. It’s the minimum coverage required by law in most U.S. states.
- Bodily Injury Liability: Covers injuries to other drivers/passengers
- Property Damage Liability: Covers damage to another vehicle or structure
Important: Liability-only insurance does not cover your own car repairs or medical bills.
What Is Full Coverage?
“Full coverage” typically refers to a policy that includes liability plus:
- Collision Coverage: Covers damage to your car from accidents
- Comprehensive Coverage: Covers non-collision events (theft, weather, vandalism)
It may also include roadside assistance, rental car reimbursement, and uninsured/underinsured motorist coverage.
Cost Comparison: Full Coverage vs. Liability
According to the Insurance Information Institute, the average annual cost of full coverage in 2025 is around $1,682, while liability-only averages $627.
| Coverage Type | Average Annual Cost |
|---|---|
| Liability-Only | $627 |
| Full Coverage | $1,682 |
Key takeaway: Full coverage can cost 2.5x more, but provides peace of mind and financial protection in more situations.
Who Should Choose Liability-Only?
This option may be suitable if:
- Your car is more than 10 years old
- The car’s value is under $4,000
- You can afford to replace the vehicle out-of-pocket
- You drive infrequently or only locally
Who Should Choose Full Coverage?
You should consider full coverage if:
- Your car is leased or financed (required by lender)
- Your vehicle is under 5–6 years old
- You live in a high-risk area (theft, storms, accidents)
- You need protection for both your car and others
Real-Life Scenario
Example: Brian from Illinois owns a 2014 Honda Civic worth $7,200. He opted for full coverage due to his 40-mile daily commute and risk of deer collisions in his rural area. It saved him over $3,000 after a recent crash.
🛡️ Full Coverage or Liability-Only? Compare Real Costs in Seconds
Not sure which coverage fits your situation—or your budget? Get personalized quotes for both full and liability-only options to make the right decision in 2025.
FAQs About Full vs. Liability Insurance
Is full coverage required by law?
No. Only liability insurance is required by state laws. Full coverage is optional but may be required by lenders or leasing companies.
Can I switch from full coverage to liability?
Yes, but only if you fully own your car. Contact your insurer and compare quotes before switching.