Liability only auto insurance pays for injuries or property damage that you may cause in an at-fault accident up to the limits listed in your policy. Full coverage (which usually includes comprehensive and collision coverage) provides financial protection for your vehicle. Liability only auto insurance is generally cheaper than full coverage because it provides less financial protection. Liability-only insurance is usually cheaper than full coverage, but unlike full coverage, it doesn't cover all types of damage to your car.
Civil liability covers you for the accidents you cause, but full coverage also protects you in other important ways. If you are a full owner of your car, you may decide to set the coverage limits that best protect you and your family. Keep in mind that each state has its own laws about the minimum amount of liability coverage you'll need. Your uninsured or underinsured motorist coverage can help you pay your medical bills in that case.
Both types of coverage cover the expenses of another driver after an accident in which you are found guilty. Most states require drivers to have at least a minimum limit of car insurance coverage, often referred to as “minimum coverage.” Because of depreciation, it may be more practical to take out liability insurance only if your car is more than 10 years old. In general, if your car is worth less than your premiums after adding comprehensive and collision coverage, you don't need full coverage. Comprehensive insurance and collision insurance, both included in a full coverage policy, help you pay for damage caused by a collision and by incidents not related to the collision.
When you consider the difference in price between basic liability and full coverage, the additional expense can translate into the peace of mind offered by full coverage insurance. Full-coverage car insurance also protects you against the cost of damage to your vehicle if you hit something or if another driver hits you. Like car liability, it only covers the costs that you're responsible for, not the costs related to your own injuries or products. Minimum liability coverage, which covers you for the damages and accidents you cause, is basic coverage, at best.
Most states require a minimum amount of auto insurance coverage, although it tends to be limited to liability only. Liability coverage is cheaper than full coverage, but having only liability insurance means you might have to pay to replace your own car if it's stolen or damaged. However, if you, your passengers, or your car suffer any damage, a limited liability policy will not provide them with coverage. Comprehensive insurance is one of the coverages included in a full coverage policy, along with collision insurance.
Because liability coverage only protects other people from damages for which you are responsible, if you have an exclusive liability policy, you won't have coverage in the event of theft, vandalism, or damage in an accident that you cause. Purchasing liability insurance will only cover other vehicles and their injuries, not to you or your car.
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