Liability vs. Full Coverage Car Insurance
Liability car insurance covers injuries and property damage you cause to others in an accident. Full coverage insurance includes liability coverage plus protection for damage to your own car from accidents or other covered events.
Most states require drivers to carry liability car insurance, while full coverage insurance is generally required only if your vehicle is financed or leased.
| Liability | Full coverage | |
|---|---|---|
| Average rate (annual) | $816 | $2,124 |
| Required | Yes, in most states | Usually only if you have a loan or lease |
| Covers your car | No | Yes |
| Covers other vehicles | Yes | Yes |
| Covers your injuries | No | It depends on your policy |
| Covers others’ injuries | Yes | Yes |
| Covers theft, vandalism | No | Yes |
| Uses a deductible | No | Yes |
Liability insurance costs much less than full coverage insurance. On average, liability insurance costs $816 a year, compared with $2,124 a year for full coverage.
Liability insurance covers injuries, death or property damage you cause to others in an accident. It doesn’t pay to repair your own vehicle or cover your own medical bills.
Full coverage insurance includes liability coverage as well as collision coverage and comprehensive coverage, which help pay to repair or replace your car after an accident, theft, vandalism or other covered events.
Depending on your policy, full coverage insurance may also include coverage for your own medical expenses.
Another key difference is how claims are paid. Full coverage usually requires you to pay a deductible before your insurance pays for covered damage. Liability insurance doesn’t have a deductible.
Ask the expert
When should I get liability-only car insurance?
You usually don’t need collision and comprehensive coverage for a car worth a few thousand dollars or less. When a car’s value gets this low, the benefits of these coverages are rarely worth their price.
Liability vs. full coverage by state
The national average monthly cost for liability insurance is $68 ($816 annually), while full coverage insurance averages $177 per month ($2,124 annually). However, rates vary significantly by state, as shown below:
| State | Liability | Full coverage |
|---|---|---|
| Alabama | $153 | $59 |
| Alaska | $135 | $48 |
| Arizona | $201 | $82 |
| Arkansas | $197 | $59 |
| California | $182 | $69 |
| Colorado | $238 | $78 |
| Connecticut | $265 | $128 |
| Delaware | $256 | $116 |
| Florida | $264 | $87 |
| Georgia | $155 | $68 |
| Hawaii | $126 | $46 |
| Idaho | $127 | $45 |
| Illinois | $154 | $61 |
| Indiana | $144 | $53 |
| Iowa | $149 | $36 |
| Kansas | $199 | $64 |
| Kentucky | $176 | $84 |
| Louisiana | $277 | $94 |
| Maine | $107 | $43 |
| Maryland | $172 | $84 |
| Massachusetts | $152 | $70 |
| Michigan | $218 | $78 |
| Minnesota | $194 | $68 |
| Mississippi | $176 | $59 |
| Missouri | $198 | $70 |
| Montana | $183 | $46 |
| Nebraska | $171 | $48 |
| Nevada | $280 | $147 |
| New Hampshire | $113 | $50 |
| New Jersey | $209 | $119 |
| New Mexico | $188 | $66 |
| New York | $192 | $92 |
| North Carolina | $124 | $60 |
| North Dakota | $158 | $43 |
| Ohio | $124 | $48 |
| Oklahoma | $193 | $55 |
| Oregon | $172 | $86 |
| Pennsylvania | $166 | $56 |
| Rhode Island | $224 | $94 |
| South Carolina | $152 | $66 |
| South Dakota | $177 | $31 |
| Tennessee | $150 | $53 |
| Texas | $199 | $79 |
| Utah | $193 | $90 |
| Vermont | $101 | $35 |
| Virginia | $132 | $67 |
| Washington | $188 | $71 |
| Washington, D.C. | $218 | $95 |
| West Virginia | $150 | $56 |
| Wisconsin | $146 | $41 |
| Wyoming | $111 | $27 |
Liability vs. full coverage by company
The cost of liability and full coverage car insurance also varies by insurance company and driver. Here’s how average rates compare among some of the nation’s largest insurers:
| Company | Liability | Full coverage |
|---|---|---|
| State Farm | $661 | $1,604 |
| American Family | $751 | $2,019 |
| Travelers | $792 | $1,806 |
| Geico | $797 | $2,109 |
| Progressive | $801 | $2,078 |
| AAA | $1,086 | $2,988 |
| Allstate | $1,344 | $2,960 |
| Farmers | $1,363 | $3,462 |
| USAA | $437 | $1,322 |
Frequently asked questions
It depends on a number of factors, including the value of your car and your budget. The more expensive your vehicle and the more assets you have to protect, the more sense full coverage insurance may make.
Liability insurance is significantly cheaper than full coverage insurance. Liability insurance averages $68 a month nationwide ($816 annually), while full coverage insurance averages $177 a month ($2,124 annually). However, liability coverage offers significantly less financial protection.
If your car’s value is low enough that the potential payout after you pay your deductible is minimal, then full coverage car insurance probably isn’t worth it. It’s also not worth it if your car is rarely driven and you can pay out of pocket for repairs.
Methodology
LendingTree uses insurance rate data from Quadrant Information Services, using publicly sourced insurance company filings. Rates are based on an analysis of hundreds of thousands of car insurance quotes for a typical driver; your own rates may be different.
Unless noted otherwise, quotes are for a full coverage policy for a 30-year-old man with good credit and a clean driving record who drives a 2015 Honda Civic EX.
Full coverage policies include collision, comprehensive and liability coverage:
- Bodily injury liability: $50,000 per person, $100,000 per accident
- Property damage liability: $25,000
- Uninsured motorist: $50,000 per person, $100,000 per accident if required in that state
- Personal injury protection: Minimum limits if required in that state
- Collision: $500 deductible
- Comprehensive: $500 deductible
See our car insurance ratings methodology and full editorial guidelines for further details.
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