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Comparing Full Coverage vs. Liability-Only Auto Insurance: Analytics and Reviews (2025)
Feature | Liability-Only Insurance | Full Coverage Insurance |
---|---|---|
Covers damage to others (liability) | Yes | Yes |
Covers your own vehicle | No | Yes (collision & comprehensive) |
Legally required | Yes (in most states) | No (except for financed/leased vehicles) |
Covers theft, vandalism, disasters | No | Yes (comprehensive) |
Covers your injuries | No (unless MedPay/PIP added) | Yes (if MedPay/PIP included) |
Cost | Significantly cheaper | Higher premium |
Company | Liability-Only | Full Coverage | Monthly Difference |
---|---|---|---|
Erie | $43 | $115 | $72 |
State Farm | $55 | $134 | $79 |
COUNTRY Financial | $57 | $125 | $68 |
No protection for your own car
No coverage for theft, vandalism, or natural disasters
High out-of-pocket risk if you cause an accident or suffer a loss
Much higher premiums—often 2–5 times liability-only7
Deductibles apply to claims
May not be cost-effective for older, low-value cars
Your car is old or has a low market value (often, if the annual full coverage premium is more than 10% of the car’s value, liability-only makes more sense)4.
You can afford to repair or replace your car out-of-pocket.
You’re on a tight budget and need the lowest legal coverage.
Your car is new, financed, or leased (lenders require it)2.
You can’t afford to replace your car if it’s totaled.
You want protection from theft, vandalism, weather, and at-fault accidents.
You live in a high-risk area for accidents or theft.
As your car ages or your financial situation changes, re-evaluate whether you still need full coverage1.
If your annual full coverage premium exceeds 10% of your car’s value, it may be time to drop to liability-only4.
Rates vary widely—always compare quotes for both coverage types before deciding.
Liability-only auto insurance is much cheaper and suitable for older, low-value vehicles or drivers who can self-insure. Full coverage offers much broader protection and is essential for new, financed, or valuable cars, but comes at a significantly higher cost. Regularly review your policy to ensure it matches your needs and budget in 2025
© 2025 Created by Yuri Khrushch.
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