Should You Buy Full Coverage or Liability Auto Insurance

By: Nicole Tomassetti

If you are shopping for new auto insurance coverage, how do you decide if you need full coverage versus liability auto insurance? Though liability insurance may seem more affordable, carrying full coverage auto insurance can help protect you financially if you're involved in an accident.

Liability Auto Insurance

Required by law in most states, liability insurance often is the minimum amount of auto insurance coverage you can carry. Check with your state's department of motor vehicles to determine the minimum amount of liability coverage you're legally required to carry.

Liability insurance covers bodily injury and property damage expenses sustained by others during an accident. Bodily injury helps pay the medical expenses of the other party. Property damage helps pay for damage to the other party's property, such as a vehicle. However, liability insurance doesn't pay for your own medical or property expenses.

Liability insurance coverage is often written as a 3-part number (e.g., 25/50/25). Using the 25/50/25 example, the limit for bodily injury is $25,000 per person, with a maximum of $50,000 per incident. The limit for damage to another person's property is $25,000.

You should consider liability-only coverage when:

- Repairs to your car would cost more than its current market value

- You can afford your own medical expenses if you're involved in an accident

Full Coverage Auto Insurance

Even though it initially may cost more, not only will the other party's property and medical expenses be covered, but so will yours if you choose full coverage versus liability auto insurance. Full coverage auto insurance is made up of 2 main coverage types:

1. Comprehensive - Intended to pay for damages to your vehicle caused by an event other than a collision, such as damage or loss that results from theft, fire, vandalism, broken glass and/or contact with animals.

2. Collision - Helps pay for damages to your vehicle, after a collision with another vehicle or object.

You should consider full coverage vs. liability auto insurance when:

- Repairs to your car would cost less than its current market value

- You can't afford to pay for a replacement if your car is declared a total loss

- You can't afford your own medical expenses if you're involved in an accident

Weigh your options carefully when choosing to buy either liability or full coverage auto insurance. While it may cost a little more, full coverage protects both you and the other party in an accident. Compare quotes to find affordable auto insurance coverage from a company you can trust.