Liability vs. Full Coverage


There are many economical benefits to buying liability-only car insurance, however, if you are in a car accident where you are found at-fault, your out-of-pocket expenses can be financially devastating. When considering the type of insurance policy to purchase, it is essential that you consider the different coverage packages offered by an insurance company. Two types of insurance plans offered by auto insurance companies are Liability and Full Coverage.

If you want to legally drive a car in any US State, you are mandated to purchase some form of liability insurance coverage. States set their own minimum required liability coverage. A liability only insurance policy provides coverage for the cost of damage made to another party and their property at the time of accident where you were found at-fault. However, the insurance will not cover the cost of any damage that you or your property suffered. Many banks won’t even grant a loan for a new car until the driver has full coverage car insurance.

Most car insurance experts advise drivers to acquire full coverage to ensure complete protection. Full coverage includes two other types of insurance called collision and comprehensive coverage. Comprehensive coverage can offer maximum protection without collision coverage; however collision coverage alone can not provide such protection. Collision coverage only deals with car collisions while comprehensive coverage covers such areas of damage as theft, hail, and fire.

The key advantage of purchasing liability only car insurance is its lower cost; however, it can be quite costly if you are found at-fault for the accident, as you will be responsible for medical and damage costs. Young and first-time drivers should purchase full coverage for the best protection. In fact, most insurance experts recommend full coverage for almost every driver. If you are looking to buy cheap insurance, the best way to find it is to search online using an insurance quote comparison tool that will allow you to compare multiple insurance policies from a number of different insurance providers.


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