Understanding the difference could save you thousands. When it comes to auto insurance, one of the most common questions we hear is, “Do I really need full coverage, or is liability enough?”

It’s a good question, and the answer depends on your situation. The right coverage for one driver might be a waste of money for another. Let’s take a closer look at what each type covers and how to decide what’s best for your needs.

Liability insurance is the minimum coverage required by law in most states. It covers damage you cause to other people and their property if you're at fault in an accident.

That includes things like medical bills for the other driver or their passengers, repairs to the other person’s car or property, and legal fees if you're sued after an accident. 

Liability does not cover damage to your own vehicle or medical costs for your injuries. If you're hit by someone without insurance, or if you back into a pole in your own driveway, liability-only insurance won’t help with your repair bill.

Full coverage is not a specific policy but rather a combination of protections that include:

• Liability insurance (as required by the state)
• Collision coverage, which pays for damage to your car if you hit another vehicle or object
• Comprehensive coverage, which covers things like theft, vandalism, fire, hail, and animal collisions

Some policies may also include uninsured motorist protection, roadside assistance, or rental reimbursement. These extras help round out your coverage so you’re protected in more situations.

Here are a few questions to help you decide:

• Do you have a loan or lease on your vehicle? Most lenders require full coverage until the car is paid off.
• Could you afford to replace your vehicle out of pocket? If not, full coverage may be a smart investment.
• Is your car older or not worth much? If the cost of full coverage exceeds the car’s value, liability might be the more practical choice.
• Do you live in an area with a high risk of theft, vandalism, or extreme weather? Comprehensive coverage could save you a major headache.

Every driver is different, and your coverage should reflect how you actually use your car.

At the Wallace Agency, we help drivers across multiple regions understand their options without pressure or confusion. Whether you need a basic policy to meet legal requirements or a more complete package to protect your investment, we’ll help you find the right balance of cost and coverage.

Not sure what coverage makes the most sense for you? Call today or click here to get a fast, personalized quote. We’ll help you drive with confidence, knowing you’ve got the protection you need.