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	✔	x
Pays for personal injury and property damage for other drivers after an accident you caused	✔	✔
Pays for damage to your own vehicle	x	✔
Requires a deductible	x	✔
Allows optional add-on coverages	x	✔

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

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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.

Compare quotes for liability and full coverage now!

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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.

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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.

Learn more:

When should you drop full coverage on your car?

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FAQ

Is liability the same as full coverage?

No, liability coverage and full coverage car insurance are not the same. Liability insurance pays for bodily injuries and property damages to the other driver and their passengers if you’re at fault in an accident. On the other hand, full-coverage car insurance builds on liability coverage but adds extra protections with collision and comprehensive coverage, which pays replacement or repair costs for your car no matter who is at fault.

How much is liability insurance vs full coverage?

On average, liability car insurance is about $928 per year, while full coverage is about $1,985 per year. But insurance companies take many factors into consideration to determine your insurance costs, such as your driver profile and location.

When should I drop full coverage on my car?

You should drop full coverage if you have an older vehicle or it has a low actual cash value. Basically, your car should be worth 10 times the amount it costs for insurance every year.

Should I only have liability insurance?

It depends! If you own an older car, live in a rural area, and/or have a hefty savings account—liability-only car insurance might be for you. But if you live in a congested city with high crime rates or in a region prone to extreme extreme weather, you should think about purchasing full coverage car insurance for your financial peace of mind.

Meet our experts

Sarah Gray

Licensed Insurance Agent — Expert Insurance Writer and Editor

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.

Amy Bobinger

Licensed Insurance Agent — Expert Insurance Editor

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.