Liability vs. Full Coverage Auto Insurance in 2025
Comparing liability vs. full coverage auto insurance can help you find the right policy for your needs without overspending. Drivers looking to spend the least can find liability insurance starting at $65 per month. If you want better protection, full coverage auto insurance starts at $120 per month.
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Insurance and Finance Writer
Luke Williams is a finance, insurance, real estate, and home improvement expert based in Philadelphia, Pennsylvania, specializing in writing and researching for consumers. He studied finance, economics, and communications at Pennsylvania State University and graduated with a degree in Corporate Communications. His insurance and finance writing has been featured on Spoxor, The Good Men Project...
Luke Williams
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Sara Routhier, Senior Director of Content, has professional experience as an educator, SEO specialist, and content marketer. She has over 10 years of experience in the insurance industry. As a researcher, data nerd, writer, and editor, she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world of insurance....
Sara Routhier
Farmers CSR for 4 Years
Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...
Leslie Kasperowicz
Updated September 2025
Comparing liability vs. full coverage auto insurance is a critical step in determining your coverage needs.
At $65 per month, liability insurance is the cheaper option. Average full auto insurance coverage costs more at $120 per month, but it fully protects your vehicle.
The cheapest car insurance companies can help you find affordable liability vs. full coverage auto insurance rates.
- Liability insurance covers your financial responsibility after an accident
- A full coverage policy pays for your car repairs after a variety of damage
- Monthly liability rates begin at $65, while full coverage begins at $120 a month
Explore the difference between liability vs. full coverage car insurance and see which one is right for you. When you’re ready, enter your ZIP code into our free comparison tool to see liability and full coverage rates in your area.
Liability vs. Full Coverage Auto Insurance Definitions
If you need liability vs. full coverage auto insurance explained to you, you’re not alone. Most drivers are at least somewhat confused by these terms, especially those purchasing their first policies. Fortunately, the difference between liability and full coverage is quite simple.
Liability auto insurance pays for injuries and property damage you cause in an at-fault accident. Full coverage is a type of policy that combines multiple types of insurance into a single bundle.
If you want your insurance to cover your vehicle, you’ll need full coverage. Liability insurance never covers your car repair bills.
Jeff Root Licensed Insurance Agent
Most states require at least a liability-only auto insurance policy before you can legally drive. It not only ensures you can pay for medical expenses and property damage you cause, but it also protects you from being saddled with expensive bills. If you’re worried about what to do if you can’t afford auto insurance, a liability-only policy is your most affordable option.
No state requires full coverage insurance, but you may need it if you have a car loan or lease. It consists of three types of coverage bundled into one policy — liability, collision, and comprehensive insurance. Full coverage covers some of the most common ways your car might be damaged.
What Liability Auto Insurance Covers
Understanding liability auto insurance is easy — it covers damage you cause to property and injuries you cause to other drivers, their passengers, and bystanders. Liability insurance is split into two categories:
- Bodily Injury Liability (BIL): Bodily injury liability insurance covers healthcare bills, legal fees, and lost wages for other people involved in an accident you cause.
- Property Damage Liability (PDL): Property damage liability insurance pays for damage you cause to other vehicles, objects, or buildings.
Liability insurance is meant to cover your financial responsibilities after an at-fault accident. It never covers your own vehicle repairs or medical expenses. Because of this, it’s often best suited for older, lower-value cars where the cost of full coverage may outweigh the benefits.
It’s also a great option for those seeking the most affordable coverage available. Depending on where you live, you may only need a liability-only insurance policy. Purchasing only liability insurance is the best way to get the cheapest car insurance possible.
What Full Coverage Auto Insurance Covers
Full coverage is never required by state law, but you’ll probably need it if you have a car loan or lease. Regardless of the ownership status of your vehicle, full coverage is a great choice if you can’t afford to replace your car outright. It includes liability insurance plus additional protections for your own vehicle:
- Collision: Collision auto insurance covers your car repairs after an accident, no matter who was at fault. It also covers you if you hit a stationary object.
- Comprehensive: Comprehensive auto insurance covers damages outside of accidents, including animal contact, falling objects, natural disasters, and theft.
Unlike liability, full coverage requires you to pay a deductible before your insurance kicks in to repair or replace your car. An insurance deductible is the set amount you agree to cover out of pocket, such as $500 or $1,000, whenever you file a claim for your own damages.
Even a full coverage auto insurance policy has gaps. Choosing a higher deductible, for example, can lower your monthly premium, but it also means more upfront costs if you file a claim. You’ll also need extra coverage if you want custom parts covered. Fortunately, most providers offer a variety of add-ons that allow you to customize your policy.
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Liability vs. Full Coverage Auto Insurance Rates
Insurance premiums change due to various factors, but full coverage is generally more expensive than liability insurance. To get an idea of this price difference, check the rates below.
Auto Insurance Monthly Rates by Age, Gender & Coverage Level
| Driver Profile | Liability-Only | Full Coverage |
|---|---|---|
| 16-Year-Old Female | $180 | $410 |
| 16-Year-Old Male | $210 | $450 |
| 25-Year-Old Female | $105 | $190 |
| 25-Year-Old Male | $115 | $205 |
| 35-Year-Old Female | $85 | $150 |
| 35-Year-Old Male | $90 | $155 |
| 55-Year-Old Female | $70 | $125 |
| 55-Year-Old Male | $75 | $130 |
If you’re looking to save money on liability vs. full coverage auto insurance costs, the general rule is that older, less valuable vehicles are probably fine with liability-only insurance. If you can’t afford to replace your car, however, full coverage might be the better option.
Read More: 7 Ways You’re Wasting Money on Your Car
Minimum vs. Full Coverage Auto Insurance by Driving History
Liability is usually cheaper than full coverage, but why is there such a big price difference? The answer depends on several factors, including the type of car you drive, your location, and your age. One of the most significant factors affecting your car insurance rates is your driving record. Incidents such as at-fault accidents, speeding tickets, and DUIs can increase the cost of your auto insurance.
One of the easiest ways to keep your insurance rates low is to keep a clean driving record. Finding cheap auto insurance for high-risk drivers can be significantly harder, so it’s always best to avoid traffic violations.
The Best Liability vs. Full Coverage Auto Insurance Companies
Aside from your driving record, choosing the right provider for your needs is also crucial. There are many things to consider when you look at different providers, but comparing full coverage vs. liability auto insurance rates at each is a good start. Take a look below for the average cost of liability and full coverage policies from the top providers.
Auto Insurance Monthly Rates From Top Companies
| Insurance Company | Liability | Full Coverage |
|---|---|---|
 | $85 | $160 |
 | $78 | $145 |
 | $88 | $165 |
 | $72 | $135 |
 | $95 | $175 |
 | $80 | $150 |
 | $76 | $140 |
 | $70 | $130 |
 | $82 | $155 |
 | $65 | $120 |
USAA is the cheapest company, but only military members are eligible for coverage. Geico, Progressive, and State Farm have the lowest rates for minimum coverage, but only State Farm keeps its rates affordable for full coverage. The significant price variations between companies are why it’s so important to get multiple auto insurance quotes.
Insurance companies use unique formulas to determine how much to charge you, making it practically impossible to guess which provider will have the lowest rates. These different factors are why insurance experts recommend comparing quotes to find the most affordable coverage possible.
While comparing multiple quotes can help you save, it can also take a lot of time. If you want help comparing liability vs. full coverage car insurance rates quickly, enter your ZIP code into our free comparison tool today.
How to Choose the Right Amount of Insurance
Now that you know the difference between liability and full coverage, it’s time to choose how much you need. As you weigh the pros and cons of liability vs. full coverage auto insurance, keep the following in mind:
- State Requirements: No states require full coverage, but you’ll need to know local laws to ensure coverage.
- Lender Requirements: Drivers with a loan or lease on their vehicles will probably need full coverage.
- Your Vehicle’s Value: Drivers with less valuable cars are often comfortable with buying just liability insurance.
- Your Financial Situation: If you can’t afford to replace your vehicle, full coverage is probably your best insurance option.
It’s also important to periodically review your coverage to ensure you don’t need to make any changes, such as adding a driver or another vehicle (Learn More: Cheap Auto Insurance for Multiple Vehicles). You may need full coverage now, but there may come a time when you can switch to a cheaper policy.
Other Types of Auto Insurance
Getting either state minimum liability insurance or full coverage is enough auto insurance for most drivers, but you may want to customize your policy. Most providers offer a variety of add-ons. Some of the most popular include:
- Gap Insurance: If you total a vehicle with a loan or lease on it, you may owe more than the car is worth. In this case, gap insurance, or loan/lease payoff, will pay the difference between your insurance payout and how much you still owe.
- Roadside Assistance: If you ever find yourself stranded due to common emergencies like a flat tire, a dead battery, or an empty gas tank, a roadside assistance plan will come to the rescue.
- Rental Car Reimbursement: If a covered incident leaves your vehicle at the mechanic’s, your insurance will cover the cost of a temporary replacement, provided you have rental car reimbursement coverage.
- Custom Parts and Equipment Coverage: Are you the type of driver who likes to customize your ride? Custom parts and equipment coverage ensure that your insurance covers all your upgrades.
Adding more coverage to your policy can be incredibly helpful, but only purchase what you actually need. Add-ons are usually affordable, but they can quickly increase your rates.
Read More: A Visual Guide to Auto Insurance
Compare Liability vs. Full Coverage Auto Insurance Today
Once you have a solid understanding of the difference between liability vs. full coverage auto insurance, you’ll be ready to purchase the perfect policy for you. Full coverage protects your vehicle from many of life’s unexpected events, but a liability-only policy is likely much cheaper.
Wondering when to drop full coverage auto insurance? A general rule is to change your policy when you pay off a loan, or your vehicle doesn't cost too much to replace.
Michelle Robbins Licensed Insurance Agent
Read our ultimate guide on the best time to buy a new car to determine when you need full coverage vs. liability insurance. To start comparing liability and full coverage rates for free, enter your ZIP code into our comparison tool today.
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