Comparing Full Coverage vs. Liability-Only Auto Insurance: Analytics and Reviews

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

  •  averages $736–$829 per year nationwide41.

  •  averages $2,101–$2,677 per year415.

  • On average, liability-only is 61–87% cheaper than full coverage345.

  • The annual difference is typically $1,365–$1,69745.

Company Liability-Only Full Coverage Monthly Difference
Erie $43 $115 $72
State Farm $55 $134 $79
COUNTRY Financial $57 $125 $68

    • Lowest premiums1234

    • Meets state legal requirements

    • Good for older, low-value vehicles or drivers with enough savings to self-insure

    • 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

    • Pays for your car’s repairs after accidents, theft, or disasters125

    • Often required by lenders for financed/leased cars

    • More peace of mind, especially for new or valuable vehicles

    • 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

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