Liability Coverage vs Full Coverage: Which is right for you?

Choosing between liability and full coverage auto insurance is a bit like deciding whether to wear a helmet while riding a bike or going all-in with elbow pads, knee pads, and wrist guards. Sure, you might be fine with just the helmet, but if things go sideways, you’ll be glad you had the extra gear. This same decision applies when choosing between liability-only and full coverage auto insurance.

It's one of the most important decisions you'll make while shopping policies, and understanding the difference between these two options is essential for protecting both your vehicle and your wallet. So, how do you decide which one is right for you? Let’s break it down.

What Is Liability Coverage?

Did you know: In most states, liability insurance is the minimum required coverage.

You can think of liability insurance as protection against others. This type of coverage pays for damage you cause to other people or property when you’re at fault in an accident, and prevents you from having to pay out of pocket for the other party's vehicle repair and medical expenses. Here's a quick breakdown of what it includes:

Bodily Injury Liability: Covers the medical bills, lost wages, and sometimes even legal fees for the other party if you’re responsible for an accident. However, it only covers up to the limit specified in your policy. Let’s say your bodily injury limit is $50,000 per person and $100,000 per accident. If you injure someone and their medical bills exceed $50,000, you’re on the hook for the rest. If multiple people are injured and their total bills go beyond $100,000, you’re responsible for the excess as well.
Property Damage Liability: Pays for the repair or replacement of the other driver’s vehicle or any property you damage (mailboxes, fences, buildings – you get the idea). If your property damage limit is $25,000 and you crash into a luxury car with $40,000 worth of damage, you’ll need to come up with the additional $15,000.

Liability coverage protects your finances from lawsuits or massive repair bills when you accidentally bump into someone else’s world. But remember, liability won’t pay a dime toward fixing your car. If you get into a fender bender, you’re on the hook for your own repair costs. For some, this is just fine, and the risk is worth the lower monthly cost of your policy.

On average, liability-only coverage is 40% to 60% cheaper than full coverage.

What Is Full Coverage?

Full coverage is for those of us who like a little extra padding, and don't mind paying a bit more for it. Full coverage typically combines collision and comprehensive insurance, along with the basic liability protection. Here’s what you get:

Collision Coverage: No matter who's at fault, this pays for the repair or replacement of your car after a crash. Whether you hit a tree, another car, or a rogue shopping cart, collision coverage has your back.
Comprehensive Coverage: This handles the “what-ifs” that aren’t accident-related. Theft? Covered. Hailstorm? Covered. A deer decides to audition for a car commercial by leaping onto your hood? Covered.
Liability Coverage: Collision and Comprehensive coverage protects your vehicle, but you still get Liability coverage for the other party's repair and medical expenses.

What about my own medical expenses? Does comprehensive coverage cover this?

For your own medical expenses, there are a couple of different coverage options:

Personal Injury Protection (PIP): This covers medical expenses for you and your passengers, regardless of who caused the accident. In some states, it's required by law. It can also cover lost wages or other costs resulting from injuries. It's sometimes called no-fault insurance coverage.
Medical Payments Coverage (MedPay): Similar to PIP, MedPay covers medical costs for you and your passengers, but typically without covering other costs like lost wages.

Neither collision nor comprehensive will cover your medical expenses. Those are handled through PIP, MedPay, or your own health insurance policy, while liability covers the other party’s medical expenses.

Which Is Right for You: Full Coverage vs. Liability Coverage?

Deciding between liability-only and full coverage depends on several factors:

Vehicle Value: If your car is older or has a lower market value, liability coverage might make sense. Paying for full coverage could cost more than what your car is worth.
Loan or Lease Requirements: If you’re financing or leasing your vehicle, your lender may require full coverage until the loan is paid off.
Your Risk Tolerance: If you’re comfortable covering repair or replacement costs out of pocket, liability coverage could be a budget-friendly choice. If not, full coverage offers peace of mind.
Location: Living in areas prone to theft or extreme weather might make full coverage a better option. Conversely, if you live in a low-risk area, liability could suffice.

The Bottom Line

Liability coverage is the minimum protection required by law in most states, and it’s great for drivers who want to keep costs low and are driving older cars. Full coverage offers broader protection and is a smart choice for newer cars or those who want complete peace of mind.

At MapleCoverage, we help you compare both options and find the best fit for your needs and budget. Whether you opt for liability or full coverage, we’ll ensure you’re covered where it counts. Get your personalized quote today and drive with confidence!