Full Coverage vs. Liability: Which Coverage Is Right for You (2022)

Comparing full coverage vs. liability car insurance can save you up to 53% per month. However, your rates may vary when you shop at different auto insurance companies. Looking at full coverage vs. liability auto insurance also shows you the benefits of both policies, but full coverage carries more advantages. Shop around and compare multiple companies to secure the best deal.

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Chris Tepedino is a feature writer that has written extensively about home, life, and car insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, researching investigative pieces, and crafting detailed, data-driven features. His works have been featured on CB Blog Nation, Flow Words, Healing Law, WIBW Kansas, and C...

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent

UPDATED: Dec 6, 2021

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The Rundown

  • Full coverage is required for drivers who still make payments on their vehicles
  • Liability coverage is the minimum car insurance requirement
  • Liability-only coverage is around $48/month
  • Car insurance rates vary with different companies

Do you want to compare full coverage vs. liability auto insurance? Comparing full coverage vs. liability car insurance can help you locate cheap rates.

But what is the full coverage vs. liability cost on average? Why do you have to know about full coverage vs. liability insurance? Don’t worry — we’re here to answer questions about liability vs. full coverage auto insurance.

Read this guide to learn more about liability vs. full coverage car insurance and how much liability vs. full coverage costs with the top companies.

Once you learn everything about full coverage vs. liability car insurance, enter your ZIP code in the free online quote tool to compare multiple insurance companies near you.

Is full coverage car insurance better than liability insurance?

That depends on your situation.

Every driver is required to have liability auto insurance. Liability insurance is part of the minimum car insurance requirements in most states.

You’re required to buy full coverage auto insurance if you’re still making payments on your vehicle.

The full coverage definition in the auto insurance industry means you have liability coverage in addition to collision and comprehensive insurance.

Comparing liability insurance vs. full coverage allows you to see the advantages of both options. And it’s essential to compare liability vs. full coverage insurance rates before you buy car insurance.

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How much are full coverage vs. liability car insurance rates in different states?

According to the National Association of Insurance Commissioners (NAIC), liability-only insurance is about 53% cheaper than full coverage auto insurance.

One of the key differences between liability and full coverage insurance is the cost.

Let’s examine the average monthly rates for various coverages.

NAIC's Average Monthly Car Insurance Rates by State and Coverage Option
StatesAverage Monthly Liability RatesAverage Monthly Collision RatesAverage Monthly Comprehensive RatesAverage Monthly Full Coverage Rates
Alabama$37$28$14$79
Alaska$47$31$12$90
Arizona$48$25$16$89
Arkansas$36$29$17$82
California$45$36$8$88
Colorado$49$25$17$91
Connecticut$59$32$11$102
Delaware$69$28$11$107
District of Columbia$58$41$19$118
Florida$76$26$11$113
Georgia$55$30$14$98
Hawaii$39$27$9$75
Idaho$32$20$10$62
Illinois$40$27$11$77
Indiana$34$22$11$67
Iowa$27$19$16$62
Kansas$32$23$21$76
Kentucky$47$24$12$83
Louisiana$73$37$19$128
Maine$30$23$9$62
Maryland$55$31$13$100
Massachusetts$52$34$12$98
Michigan$72$37$13$121
Minnesota$39$20$16$76
Mississippi$41$29$18$88
Missouri$38$24$16$79
Montana$34$23$21$77
Nebraska$33$21$20$74
Nevada$64$27$10$100
New Hampshire$35$26$9$70
New Jersey$76$33$11$119
New Mexico$44$24$15$84
New York$71$34$15$120
North Carolina$31$26$11$67
North Dakota$25$22$20$67
Ohio$35$24$10$69
Oklahoma$40$27$20$88
Oregon$53$20$8$81
Pennsylvania$43$29$13$85
Rhode Island$68$36$11$116
South Carolina$50$24$16$89
South Dakota$26$19$24$69
Tennessee$37$27$13$77
Texas$49$33$19$101
Utah$45$23$10$78
Vermont$30$26$11$68
Virginia$38$25$12$74
Washington$53$24$9$86
West Virginia$43$28$18$88
Wisconsin$33$20$12$65
Wyoming$29$24$23$75
*Industry Average$48$29$13$90
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On average, liability auto insurance rates cost $48 a month. Meanwhile, full coverage auto insurance rates are $90 a month on average.

Comprehensive insurance is the cheapest out of the four coverage options.

However, you can’t get collision and comprehensive auto insurance alone. Collision and comprehensive insurance have to be attached to liability insurance.

How much are full coverage vs. liability car insurance quotes at the best companies?

Where you choose to buy full coverage or liability auto insurance will determine your monthly rates. If you want to find affordable full coverage or liability car insurance, you’ll need to shop with the best insurance companies.

Let’s compare the top ten auto insurance companies in the nation.

Average Monthly Full Coverage and Liability-Only Car Insurance Rates
CompanyFull Coverage Car Insurance RatesLiability-Only Car Insurance Rates
Allstate$161$63
American Family$113$52
Farmers$125$47
GEICO$84$38
Liberty Mutual$137$52
Nationwide$95$37
Progressive$98$43
State Farm$100$41
Travelers$109$46
USAA$101$38
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There is a significant difference in monthly rates between liability vs. full coverage insurance.

Nationwide, GEICO, and USAA have the cheapest auto insurance rates for liability insurance. Meanwhile, GEICO, Progressive, and Nationwide are the top three most affordable companies for full coverage.

What does liability car insurance cover?

Liability auto insurance covers bodily injury and property damage to another driver when you’re at fault in an accident.

Your liability insurance covers you up to specific limits. You can go with the state minimum or raise your coverage limits.

Car insurance companies may recommend $50,000 for bodily injury of one person per accident, $100,000 for bodily injury of multiple people per accident, and $50,000 for property damage per accident.

What doesn’t liability car insurance cover?

Liability insurance does not cover damage to your vehicle. In other words, your bodily injury and property damage costs won’t be covered by your insurance company under liability auto insurance.

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What does full coverage car insurance cover?

Full coverage auto insurance is a combination of insurance options. Full coverage insurance policies usually have liability, collision, and comprehensive coverage bundled into one car insurance policy.

Collision insurance covers damage to your vehicle after an accident regardless of fault.

Comprehensive coverage pays for damage that doesn’t involve a collision, such as vehicle theft, fire damage, storm damage, flooding, animal damage, and damage from civil unrest.

However, some companies also throw in roadside assistance and rental car reimbursement.

You may also find uninsured/underinsured motorist (UM/UIM) coverage on your policy in states where it’s required. But many auto insurance companies recommend UM/UIM coverage.

Consider adding personal injury protection (PIP) and/or medical payments (MedPay) coverage to your policy, also.

What doesn’t full coverage car insurance cover?

Full coverage insurance doesn’t go beyond the limits you purchased.

An auto insurance policy with the minimum coverage limits won’t cover the repair costs and medical expenses of a serious accident.

Full Coverage vs. Liability Car Insurance: The Bottom Line

If you want total coverage on your vehicle, get full coverage auto insurance. Liability car insurance is the bare minimum.

We recommend full coverage car insurance. Full coverage insurance will give you protection for just about any scenario involving your car.

Several factors determine whether affordable full coverage vs. liability car insurance is available to you. Before you choose to buy full coverage vs. liability car insurance, explore your options to see what’s best for you.

Now that you’ve evaluated full coverage vs. liability car insurance, enter your ZIP code in the free comparison tool below to compare multiple insurance companies in your area.

Frequently Asked Questions: Full Coverage vs. Liability Car Insurance

Do you want to learn more about full coverage vs. liability auto insurance? Read these answers to frequently asked questions to find out more.

#1 – Should I buy liability or full coverage car insurance?

It’s better to purchase full coverage auto insurance. However, if the average cost of damage is more than your vehicle is worth, liability insurance may be best for you.

#2 – Is collision car insurance cheaper than full coverage?

Yes, it is. Collision auto insurance is $61 cheaper than full coverage on average. Remember that you cannot buy collision insurance by itself. You must also purchase liability insurance.

#3 – Does full coverage have bodily injury liability and property damage liability?

Yes, it does. Bodily injury liability and property damage liability are part of liability insurance. Since liability auto insurance is included in full coverage, both coverages will be available.

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