Full coverage vs. auto liability insurance
Updated December 31, 2019 . AmFam Team
Liability coverage helps pay for damages or injuries you may have caused to others. You can choose to match the minimum car insurance requirements of your state or increase your limits. You could also expand your auto policy with comprehensive coverage, collision coverage and other coverages.
This article tackles both approaches to auto insurance, here nicknamed “liability only insurance” and “full coverage” for simplicity. Read on for more information on full coverage vs. auto liability only insurance.
How much coverage does your state require?
Whether you're moving across the U.S. or getting insurance for the first time, we'll help you quickly understand your state's minimum coverage requirements.
What’s the difference between liability insurance and full coverage?
Generally, liability insurance may cover damages or injury that you cause to others. Limits can be increased to high amounts, but this article specifically goes over state minimum liability insurance. That’s a base level of coverage, enough to meet your state’s minimum legal requirements.
“Full coverage” doesn’t mean coverage for every situation, or guarantee payment for any or every claim. It’s not even a type of coverage, but a nickname for an approach to buying coverage. Full coverage typically refers to auto policies that add optional comprehensive and collision coverages alongside liability insurance.
State laws may require a minimum amount of liability insurance, but may not require these additional coverages. With that said, your lender may require you to purchase full coverage if you still owe money on your car.
Do you owe more on your car than it’s worth?
Gap coverage insurance may help in the event that your car gets totaled or stolen. If what you still owe is more than what the car’s worth, this add-on may cover the difference.
What is covered under liability and full coverage?
State minimum liability insurance may help with paying for damages and accidents when the policy owner is at fault. Coverages include:
- Bodily injury liability insurance
- Property damage liability insurance
Full coverage, as some people use the term, includes the above-named coverages while adding a few more. Add-ons may include, but aren’t limited to:
Of course, there are other coverages you can add to your auto policy. Emergency roadside assistance and rental car reimbursement protection are just two examples.
Full coverage vs. liability cost
Only having liability insurance that meets minimum limits set by state laws would cost less than full coverage. When thinking about the liability only vs. full coverage price difference, keep in mind that full coverage comes with more protection. The extra expense may translate to greater peace of mind.
The costs of both insurance options may shift based on where you live. What qualifies as “state minimum liability insurance” may differ from one state to the next. Other factors that may affect insurance rates include your previous driving record and the age of your vehicle, among others.
Get car insurance that meets your needs
If you still have questions about full coverage vs. liability only insurance, we can help. Contact your American Family Insurance agent to learn more about which options are best for your needs.
This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for assistance.
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