Full Coverage vs. Liability-Only Car Insurance: Which Is Right for You?

When it comes to car insurance, one of the most common — and most important — questions is: Should I get full coverage or stick with liability-only? Whether you're shopping for your first auto policy or reviewing your current one, the choice can have a major impact on both your wallet and your protection.

In this 2025 guide, we break down the difference between full coverage vs. liability-only car insurance, explain who needs each, and help you decide what’s right for your situation.

What Is Liability-Only Car Insurance?

Liability-only car insurance is the bare minimum coverage required by law in most states, including Connecticut. It’s designed to protect other people, not you or your car.

What It Covers:

1. Bodily Injury Liability: Pays for medical expenses, lost wages, and legal fees if you hurt someone in an accident.

2. Property Damage Liability: Covers repair or replacement costs for another person’s vehicle or property (like a fence or mailbox) if you’re at fault.

Example: If you rear-end another car, liability insurance pays for their car repairs and their medical bills, not yours.

 What It Does NOT Cover:

• Damage to your car (from an accident you caused)

• Theft or vandalism of your vehicle

• Weather-related damage (like hail or flooding)

• Your own medical bills (unless you add optional Medical Payments or PIP coverage)

Why People Choose It:

• It’s cheaper than full coverage

• Good for older or low-value vehicles

• Ideal for those who can afford to repair/replace their car out-of-pocket

What Is Full Coverage Car Insurance?

Full coverage car insurance is a combination of three coverages:

1. Liability Coverage (same as above — required by law)

2. Collision Coverage

3. Comprehensive Coverage

It protects you, your car, and others, offering wider protection and more peace of mind.

What It Covers:

1. Collision Coverage

Pays to repair or replace your vehicle if you hit:

• Another vehicle

• A pole, guardrail, or tree

• A pothole or structure

2. Comprehensive Coverage

Pays for non-collision damage, such as:

• Theft or vandalism

• Fire, hail, or flooding

• Fallen trees or hitting a deer

Example: If someone hits your parked car or a tree falls on it during a storm — collision and comprehensive coverage kick in.

Optional Add-ons:

• Uninsured/Underinsured Motorist Coverage

• Roadside Assistance

• Rental Car Reimbursement

• Gap Insurance (covers the difference between the car value and the loan balance)

Why People Choose It:

• Required for financed or leased vehicles

• Best for newer or high-value vehicles

• Offers maximum protection, especially if you can’t afford unexpected repair/replacement costs

Full Coverage vs. Liability-Only: Key Differences

Feature	Liability-Only	Full Coverage
Covers your car	❌ No	✅ Yes
Covers other people	✅ Yes	✅ Yes
Required by lenders	❌ No	✅ Yes
Monthly cost	💲 Lower	💲💲 Higher
Recommended for	Older cars	New cars or financed cars

How Much Do They Cost?

The average annual cost of liability-only car insurance in Connecticut in 2025 is around $800–$1,200, while full coverage can range from $1,500–$2,400, depending on your:

• Driving history

• Credit score

• Vehicle make/model

• Zip code

• Deductibles and limits

Tip: Shop around and compare car insurance quotes to see your best rate. If you want to save your time shopping around, we can help you! Call us and request a quote now.

Should You Choose Full Coverage or Liability-Only?

Here are some questions to help you decide:

Choose Liability-Only if:

• Your car is older than 10 years

• The car’s value is less than $5,000

• You could afford to replace it out-of-pocket

• You’re trying to save money short-term

Choose Full Coverage if:

• You have a new, financed, or leased car

• You can't afford major repairs or replacement

• You want protection from uninsured drivers, theft, or weather damage

• You’re building a long-term risk strategy

How to Save on Car Insurance (Regardless of Coverage Type)

• Bundle policies (home + auto)

• Increase your deductible

• Ask about good driver, student, or military discounts

• Use telematics or safe driving apps

• Pay premiums annually instead of monthly

• Shop with independent insurance agents who compare top-rated carriers

Pro Tip: At Insure Connecticut LLC, we help you compare policies from multiple insurance providers to find the right fit — and the right price — for your needs. 

Visit www.myinsurect.com or call (860) 970-0977 for a free quote.

Final Thoughts

Choosing between full coverage and liability-only car insurance isn’t one-size-fits-all. The right choice depends on your car’s value, your financial situation, and how much risk you're comfortable taking.

Need help deciding? Contact Insure Connecticut LLC — we make it easy to compare plans, save money, and get peace of mind on the road.

Frequently Asked Questions:

1. Is full coverage always required?

No, but lenders and leasing companies often require it. If you own your vehicle outright, you can legally choose liability-only in most states, including Connecticut.

2. Can I drop full coverage after I pay off my car?

Yes — many drivers switch to liability-only once their car’s value declines. Just make sure you’re comfortable with the potential out-of-pocket costs after an accident.

3. What’s the cheapest way to get full coverage?

Use an independent agent to compare quotes, increase your deductible, and stack up discounts like good driver or multi-policy deals.

4. Will switching from full coverage to liability hurt my credit?

No. Insurance coverage levels don’t directly affect your credit score, though payment history on premiums might.

📞 Call us today at (860) 970-0977 or visit www.myinsurect.com for your free, no-obligation quote.