Liability Only vs Full Coverage Auto Insurance
**Liability-only** covers damage you cause to others—cheapest if you own the car outright. **Full coverage** adds collision and comprehensive, usually required on financed vehicles and worth it when replacement cost would hurt your budget.
Step by step
1. Check lender rules
Loans and leases typically mandate collision and comp.
2. Compare premium tiers
Run minimum vs standard vs full in the insurance calculator.
3. Stress-test a total loss
Could you replace the car without collision coverage?
Liability vs full coverage
Older low-value cars often justify liability-only; new cars rarely do.
- Liability only: Lower premium; no repair/replace for your car.
- Full coverage: Higher cost; protects financed asset and theft.
Use our calculators
Common mistakes
- Dropping comp on a financed car
- Under-insuring liability limits
FAQ
Is full coverage required?
Legally no in most states—but lenders require it on loans.