Full coverage vs liability insurance: which do you need?

'Full coverage' isn't an official policy type — it's shorthand for liability plus comprehensive and collision. Here's how to decide what you need.

Liability vs full coverage

Liability pays for the other person's injuries and property when you're at fault. It's required in most states. Comprehensive and collision pay to repair or replace your own car from crashes, theft, weather, and more.

A simple rule

If your car is financed or leased, the lender requires full coverage. If you own it outright, compare the annual cost of comp/collision to roughly 10% of your car's value — when the premium approaches that, dropping to liability often makes sense.