Liability vs. Full Coverage Car Insurance: What’s the Difference?
When it comes to insuring your car, there are several options to consider when choosing the right coverage for your needs. With over 50 years of experience in auto insurance, many of our customers have asked us about the difference between liability vs full coverage insurance. Just like there is no universal vehicle for everyone, there is no "one size fits all" insurance policy. Every driver has different needs when it comes to car insurance, and that’s why the experts at United Auto Insurance are here to help. Let’s break down liability insurance and full coverage auto insurance so you can find the best protection and peace of mind.
What Is Liability Insurance and Is It Required in Illinois and Indiana?
Liability insurance, often referred to as liability only car insurance, is required by law in both Illinois and Indiana. This type of coverage protects you financially if you cause an accident that results in injuries or property damage to others.
Example scenario: During a snowstorm, you slide into another car, which then hits a light pole. Here’s what a liability policy would cover:
- Damage to the other car – Yes
- Injury to passengers in the other car – Yes
- Damage to the light pole – Yes
- Damage to your own car – No
- Your injuries – No
- Your passenger’s injuries – No
With liability-only coverage, you would be personally responsible for any costs not covered by the policy, such as your own vehicle damage or medical bills.
What Liability Insurance Doesn’t Cover
Liability insurance won’t protect your car or your medical bills. It only covers damage or injuries to others when you're at fault. To cover yourself, consider adding collision or comprehensive coverage, and potentially medical payments or PIP coverage.
What Is Full Coverage Auto Insurance?
While "full coverage" isn’t a technical term, it generally refers to a policy that includes liability, collision, and comprehensive coverage. This broader policy protects you from more types of incidents, including those that impact your car.
Using the same snowstorm example, a full coverage policy would typically cover:
- Damage to the other car – Yes
- Injury to passengers in the other car – Yes
- Damage to the light pole – Yes
- Damage to your car – Yes
- Your injuries – Yes
- Your passenger’s injuries – Yes
Full coverage car insurance offers expanded protection and can provide peace of mind, especially for new vehicles or financed cars.
What Full Coverage May Not Include
Despite the name, full coverage doesn’t cover everything. It may not include:
- Medical Payments (MedPay) or Personal Injury Protection (PIP)
- Uninsured/Underinsured Motorist Protection
- Roadside Assistance (unless added separately)
To make sure you're fully protected, contact United Auto Insurance today and let us help you find the right coverage with a free insurance quote.
Should I Choose Liability or Full Coverage Insurance?
The right choice depends on your specific situation, budget, and risk tolerance. Full coverage costs more, but it offers added protection. Liability-only insurance is cheaper but offers limited coverage. Learn more about the importance of liability insurance and why it plays a vital role in protecting your finances
Cost Factors: Liability vs. Full Coverage
- Liability Insurance: Cost depends primarily on your driving record, claims history, and coverage limits.
- Full Coverage: Cost is influenced by your vehicle’s value, make/model, location, deductible choices, and driving history.
Getting a free quote from United Auto Insurance can help you compare these options easily.
When Full Coverage Insurance May Be a Smarter Choice
If you're looking for greater peace of mind and protection for your investment, full coverage could be the right option. Consider full coverage if:
- Your car is financed or leased
- You want protection against damage or theft
- You want coverage for hail, animal collisions, or broken glass (this is comprehensive coverage)
- You don’t want to pay out-of-pocket for accident-related damages
When Liability-Only Insurance Might Be Enough
Liability-only coverage can be a budget-friendly solution if you’re willing to accept more risk. It may work for you if:
- Your vehicle is older and owned outright
- You are comfortable paying out-of-pocket for repairs or medical costs
- You need to meet minimum state insurance requirements at a lower cost
Get Help Choosing Between Full Coverage and Liability Insurance with United Auto Insurance
For over 50 years, United Auto Insurance has helped drivers across Chicagoland and Northwest Indiana find cheap auto insurance coverage. Whether you're comparing full coverage vs liability car insurance or looking for the cheapest liability insurance, we can help you find the right plan.
Contact United Auto Insurance today to get a free insurance quote and let our licensed agents help you choose the best policy for your needs.