There are many different types of car insurance coverages that make up your car insurance policy. Each driver has unique needs based on their driving history, their age, and their car make and model. Understanding the difference between liability vs. full coverage car insurance and what they cover is key when trying to choose coverage to fit your needs.

You can get liability coverage for as low as $22 per month and full coverage for $78 per month, both from USAA. Below, you can find out what liability and full coverage are and see how they differ. You can find the cheapest insurance coverage tailored to your needs by entering your ZIP code.

What You Should Know

• Full coverage includes collision and comprehensive protection
• USAA leads with 19% bundling and 11% safe-driver discounts
• Liability covers damages and injuries to others and is required in most states

Liability Car Insurance: Coverage, Limits, & Requirements

Liability coverage is the part of your car insurance coverage that is required in most states for all car owners. In short, it covers the damage you cause to other people and their property in an accident, but it's separated into two different parts: bodily injury liability and property damage liability. Remember that some states require more than just liability car insurance.

• Bodily Injury Liability (BIL): Covers medical expenses, lost income, and funeral costs for individuals injured or killed in an accident caused by the policyholder. Also covers the policyholder's legal fees if sued.
• Property Damage Liability (PDL): Pays for damage to another party’s property, such as vehicles, fences, or buildings, in an at-fault accident. Includes legal defense costs if the policyholder is sued.

Car insurance companies typically group bodily injury and property damage liability limits together, displayed as three amounts (e.g., $100,000/$300,000/$50,000) representing coverage per person, per accident, and for property damage. State minimums may fall short, so consider higher limits; check the best car insurance companies page.

Full Coverage Car Insurance Key Facts

What is full coverage insurance? "Full coverage" is a misleading term since it doesn't actually provide complete protection; instead, it typically refers to a combination of state-required liability insurance plus optional collision and comprehensive coverages (which may be required by lenders for leased or financed vehicles).

What does full coverage car insurance consist of? It includes collision coverage, which protects your car from accident-related damage while driving (like hitting another vehicle or object), and comprehensive car insurance coverage, which handles non-collision damage such as theft, vandalism, natural disasters, fallen objects, and animal damage.

At what point do you drop full coverage on your car? This decision depends on your vehicle's value and financial situation. When comparing full coverage vs. comprehensive, remember that comprehensive alone only covers non-collision incidents, while full coverage packages include both collision and comprehensive protection, though neither truly covers everything.

Liability Car Insurance vs. Full Coverage Differences

Understanding what is the difference between full coverage and liability comes down to protection level — liability insurance is required in most states, while full coverage typically adds optional collision and comprehensive coverages, which may be required by lenders.

When comparing minimum vs. full coverage car insurance, full coverage offers more protection but comes with a insurance deductible, whereas liability does not. Compare monthly rates from top insurers to see the cost difference between liability vs. full coverage cost and find the best option for your budget.

Insurance Company	Minimum Coverage	Full Coverage
	$32	$86
	$61	$130
	$44	$110
	$53	$120
	$30	$85
	$44	$105
	$39	$100
	$33	$90
	$37	$95
	$22	$78

Full coverage vs. liability cost varies, with full coverage being more expensive due to broader protection.

Liability Insurance vs. Full Coverage Savings

When comparing insurance options, while full coverage typically comes with higher premiums, many drivers find themselves weighing liability versus full coverage to determine the best value for their needs.

Let's examine the available discount opportunities from major insurers, where you can save up to 19% through bundling and up to 11% with safe driving habits, potentially making the step up from basic liability to full coverage more affordable.

Insurance Company	Safe-Driver	AutoPay	Bundling	New Car	Loyalty
	7%	4%	12%	6%	10%
	10%	3%	18%	9%	8%
	8%	5%	15%	6%	12%
	6%	5%	14%	5%	13%
	9%	4%	13%	7%	11%
	10%	4%	14%	6%	12%
	7%	3%	12%	5%	10%
	8%	4%	13%	6%	11%
	7%	3%	12%	5%	10%
	11%	4%	19%	9%	14%

While choosing between full coverage car insurance vs. liability depends on your needs, exploring various discounts can significantly reduce your costs. Looking at ways to lower your auto insurance rates, the data reveals bundling offers the highest savings across all insurers, with USAA consistently providing the most generous discount percentages in each category.

Liability vs. Full Coverage Car Insurance Coverage

Drivers must carefully assess their financial situation and vehicle value to make an informed choice. Understanding policy and vehicle coverage vs. policy coverage only becomes crucial when considering factors beyond the basic coverage comparison - such as weather, crime, and parking risks impact full coverage value.

Beyond standard liability, comprehensive, and collision coverage, certain states mandate additional protections such as no-fault insurance (also known as personal injury protection or PIP), which covers medical expenses regardless of fault, and uninsured/underinsured motorists coverage that protects you if the at-fault driver lacks adequate insurance.

Optional add-ons include umbrella insurance for extra liability protection, rental car coverage for temporary transportation needs, and roadside assistance for breakdowns and other emergencies – all designed to provide more comprehensive protection based on individual needs.

Full Coverage vs. Liability Insurance: Finding the Right Balance

What kind of car insurance you really need depends on balancing protection with affordability. While liability insurance meets state minimums and USAA offers the lowest rates starting at $22 monthly, full coverage provides comprehensive protection against both collision and non-collision incidents at a higher cost, starting at $78 with USAA.

When making your decision, consider your vehicle's value, financial situation, and risk factors. Liability vs. full coverage car insurance is a key comparison to weigh, as each option offers different levels of protection and costs. Exploring discount opportunities can also make more extensive coverage affordable.

Whether choosing basic liability or full coverage, understanding the complete range of coverages - from mandatory state requirements to optional add-ons - ensures you select a policy that best protects your financial interests while meeting your specific needs. Enter your ZIP code to start comparing premiums from highly-rated insurers in your area.

Frequently Asked Questions

How does liability vs. comprehensive coverage differ in terms of protection?

While liability only covers damages to others' property and injuries, comprehensive coverage protects against non-collision incidents like theft, vandalism, and weather damage. Neither includes collision coverage, which is why full coverage combines both.

Read More: Collision vs. Comprehensive Coverage: Differences in Car Insurance Policies

At what vehicle value should I consider dropping full coverage?

Consider dropping full coverage when your annual premium exceeds 10% of your car's value or when your car's value falls below $4,000, but factor in your savings and ability to replace the vehicle.

Does full coverage insurance include a deductible for all claims?

No, deductibles only apply to collision and comprehensive claims. Liability claims, which cover damage to others, don't require a deductible. Enter your ZIP code to compare quotes instantly and find the cheapest insurance available.

How does policy and vehicle coverage vs. policy coverage progressively affect my premium?

Policy and vehicle coverage includes protection for your car plus liability, typically costing 2-3 times more than policy-only coverage, which only provides liability protection for others' damages.

Read More: Liability Car Insurance Coverage

What's the typical cost difference between liability and full coverage?

If you're wondering the price difference between full coverage and liability, full coverage typically costs 2.5-3 times more than liability, with USAA offering the lowest rates at $22 for liability and $78 for full coverage. Start comparing affordable insurance options by entering your ZIP code into our free quote comparison tool today.

Does my location affect whether I should choose liability or full coverage?

Yes, areas with high theft rates, frequent severe weather, or dense traffic may justify full coverage, even for older vehicles, due to increased risk.

Can I add roadside assistance to both liability and full coverage policies?

Yes, roadside assistance is an optional add-on for both policy types. Most insurers offer this service through their own network or partners.

Read More: Best Car Insurance Companies for Roadside Assistance

How do financing requirements affect my coverage choice?

Lenders typically require full coverage with specific deductible limits while financing. Once paid off, you can choose to reduce coverage based on your needs.

What determines if I need higher liability limits versus basic full coverage?

Consider your assets' value - if you have significant savings or property, higher liability limits may be more important than comprehensive/collision coverage. You can also enter your ZIP code into our free comparison tool to start comparing rates now.

Are there state-specific considerations when choosing between liability and full coverage?

Yes, no-fault states often require personal injury protection (PIP), while states with high uninsured motorist rates may make full coverage more valuable for protection.