If you cause a car accident, your liability coverage will pay for other injured persons’ medical bills and repairing or replacing any damaged property.
If your vehicle gets damaged, your full coverage car insurance policy will pay for the cost of repairing or replacing it, regardless of who’s at fault.
Liability insurance vs full coverage
Liability car insurance is the minimum coverage required in most states. It typically includes bodily injury liability and property damage liability coverage to pay for any medical expenses and property damages following a car accident that resulted from your negligence. In some states, liability also includes uninsured/underinsured motorist coverage, medical payments coverage (MedPay), and/or personal injury protection (PIP).
Full-coverage car insurance doesn’t actually cover every possible scenario. Instead, it’s a catch-all term for any policy that includes liability coverage to pay for damages you cause and collision insurance and comprehensive insurance to pay for physical damages to your car, regardless of fault. Full coverage policies also allow drivers to add optional coverages and perks, like
- Gap insurance
- Rental reimbursement coverage
- Roadside assistance
Here’s a breakdown of the differences between a liability and a full coverage policy:
| LIABILITY INSURANCE | FULL COVERAGE | |
| Required by law |  |  |
| Requires a deductible | | |
| Pay for damage to your vehicle | | |
| Allows optional add-on coverages | | |
| Required to lease | | |
| Required for a car loan | | |
| Covers other drivers after an accident you caused* | | |
Liability and full coverage policies also differ in terms of policy limits.
- Liability limits vary and must meet or exceed those set by your state.
- Full coverage limits typically equal your car’s actual cash value (ACV).
Learn more: Types of car insurance
Liability-only vs full-coverage insurance costs
On average, state-minimum liability coverage costs around $928 per year while full coverage insurance runs about $1,985 per year. But your auto insurance rate will depend on factors such as your location and insurance provider.
Liability insurance vs full coverage cost by state
State-wide factors can impact the cost of your car insurance premiums. But rates can vary widely even within the same state—drivers in rural areas generally pay lower liability insurance rates than drivers in major cities, for instance. Insurance providers also consider the climate and crime rate when calculating full coverage insurance prices.
Here’s an overview of how where you live affects your average annual premiums for liability and full coverage:
| State | Minimum coverage | Full coverage |
|---|---|---|
| Alabama | $1,340 | $1,787 |
| Alaska | $1,332 | $1,800 |
| Arizona | $1,422 | $1,937 |
| Arkansas | $1,294 | $1,882 |
| California | $1,394 | $2,404 |
| Colorado | $1,406 | $2,172 |
| Connecticut | $1,887 | $2,193 |
| Delaware | $1,881 | $1,967 |
| Florida | $1,840 | $3,741 |
| Georgia | $1,860 | $2,554 |
| Hawaii | $984 | $1,752 |
| Idaho | $1,232 | $1,419 |
| Illinois | $1,310 | $1,650 |
| Indiana | $1,224 | $1,372 |
| Iowa | $1,175 | $1,367 |
| Kansas | $1,236 | $1,623 |
| Kentucky | $1,556 | $2,392 |
| Louisiana | $1,810 | $3,121 |
| Maine | $1,084 | $1,903 |
| Maryland | $2,068 | $2,299 |
| Massachusetts | $1,166 | $1,545 |
| Michigan | $1,999 | $2,359 |
| Minnesota | $1,499 | $1,600 |
| Mississippi | $1,217 | $1,761 |
| Missouri | $1,373 | $1,939 |
| Montana | $1,108 | $1,492 |
| Nebraska | $1,298 | $1,454 |
| Nevada | $1,876 | $2,106 |
| New Hampshire | $1,636 | $1,989 |
| New Jersey | $2,112 | $2,168 |
| New Mexico | $1,710 | $1,910 |
| New York | $2,892 | $3,533 |
| North Carolina | $1,312 | $2,889 |
| North Dakota | $1,209 | $1,819 |
| Ohio | $1,442 | $2,174 |
| Oklahoma | $1,363 | $1,650 |
| Oregon | $1,481 | $1,789 |
| Pennsylvania | $1,488 | $1,601 |
| Rhode Island | $1,836 | $2,221 |
| South Carolina | $1,820 | $2,618 |
| South Dakota | $1,269 | $2,347 |
| Tennessee | $1,222 | $1,856 |
| Texas | $1,379 | $2,374 |
| Utah | $1,539 | $1,789 |
| Vermont | $928 | $1,063 |
| Virginia | $1,432 | $1,764 |
| Washington | $1,416 | $1,738 |
| West Virginia | $1,309 | $1,608 |
| Wisconsin | $1,231 | $1,339 |
| Wyoming | $1,095 | $1,263 |
Average cost of liability insurance vs full coverage by popular provider
Each insurance provider has its own formula for calculating insurance rates. The rate you’re quoted by one company may be much higher (or lower) than quotes from other providers.
Let’s look at the average insurance rates from some of the best car insurance companies:
| Car insurance company | Minimum coverage | Full coverage |
|---|---|---|
| AAA | $1,266 | $2,584 |
| Allstate | $1,019 | $2,380 |
| Clearcover | $791 | $1,559 |
| GEICO | $554 | $1,536 |
| Metlife | $952 | $1,997 |
| Nationwide | $734 | $1,860 |
| Progressive | $947 | $2,137 |
| State Auto | $693 | $1,939 |
| Travelers | $711 | $1,691 |
Just as not all insurers are the same, not all drivers are the same. Your driving record, demographics, and location all play a role in your auto insurance rates.
To compare rates customized to you and your driving profile, head to Jerry. Within minutes of downloading the app you’ll have a selection of free quotes for liability and full coverage policies from top providers to choose from—plus, you can select and bind your policy right in the app.
Liability vs full coverage requirements
Required by most states, liability car insurance is the basic minimum coverage that pays for the other driver’s medical expenses and vehicle damage in the event of an at-fault car accident. Even in states where drivers have other options for proving the financial responsibility required to drive legally, most choose to purchase liability coverage.
No state requires full-coverage car insurance, but lenders will typically require it for drivers who lease or finance a car. Plus, most drivers find it worth the added expense since it not only helps minimize post-accident out-of-pocket expenses but also offers options for additional coverage, like roadside assistance and rental reimbursement coverage.
Liability car insurance vs full coverage: Which is better?
Full coverage is better than liability-only car insurance coverage in almost every way:
- It covers more expenses, such as medical treatments and car repairs
- It applies in more scenarios
- You can file a claim even if you’re at fault
The only disadvantage to full coverage is its comparatively higher car insurance cost. However, most drivers will find the extra premiums more than worth it.
You need full coverage if…
- You’ve financed or leased a used or new car.
- You have an inexperienced and accident-prone teen driver on your policy.
- You’re a senior driver worried about vision, hearing, and reflex losses.
- You live in a highly-congested city with an equally high accident rate.
- You’ve invested in a high-end vehicle, trim, or package.
- You live in a city with a high crime or motor vehicle theft rate.
- You live in a coastal or mid-western region known for extreme weather events, such as hurricanes and tornadoes, or natural disasters, like volcanoes.
- Your car is a vintage collector’s item you want to preserve.
You can skip full coverage if…
- You can easily afford to repair or replace your vehicle on your own if it’s damaged, stolen, or declared a total loss.
The bottom line: Unless you can afford to shoulder the financial burden of repairing or replacing your vehicle if it’s damaged, stolen, or declared a total loss, you need full coverage car insurance.
FAQ
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Is liability the same as full coverage?
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How much is liability insurance vs full coverage?
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Sarah Gray is an insurance writer with nearly a decade of experience in publishing and writing. Sarah specializes in writing articles that educate car owners and buyers on the full scope of car ownership—from shopping for and buying a new car to scrapping one that’s breathed its last and everything in between. Sarah has authored over 1,500 articles for Jerry on topics ranging from first-time buyer programs to how to get a salvage title for a totaled car. Prior to joining Jerry, Sarah was a full-time professor of English literature and composition with multiple academic writing publications.
Expert insurance writer and editor Amy Bobinger specializes in car repair, car maintenance, and car insurance. Amy is passionate about creating content that helps consumers navigate challenges related to car ownership and achieve financial success in areas relating to cars. Amy has over 10 years of writing and editing experience. After several years as a freelance writer, Amy spent four years as an editing fellow at WikiHow, where she co-authored over 600 articles on topics including car maintenance and home ownership. Since joining Jerry’s editorial team in 2022, Amy has edited over 2,500 articles on car insurance, state driving laws, and car repair and maintenance.
