How Does Liability-Only Car Insurance Compare to Full Coverage?

When it comes to auto insurance, one of the biggest decisions you’ll face is whether to go with liability-only coverage or full coverage. While both serve important purposes, they offer very different levels of protection—and costs. Choosing the right one depends on your vehicle, your budget, and how much financial risk you’re comfortable with.

At Riverfront Insurance Partners, we help drivers in Covington and across Northern Kentucky find the right auto insurance plan for their needs. Below, we’ll break down the differences between liability-only and full coverage to help you make the most informed decision.

What Is Liability-Only Auto Insurance?

Liability-only insurance is the minimum coverage required by law in most states, including Kentucky. It covers damage you cause to other people and their property, but it does not cover your own vehicle.

There are two main parts to liability insurance:

1. Bodily Injury Liability – Covers medical expenses, lost wages, and legal costs if you’re at fault in an accident that injures someone else.
2. Property Damage Liability – Covers the cost of repairing or replacing another driver’s vehicle or property (like a mailbox or fence).

Who Should Consider Liability-Only Insurance?

• Drivers of older vehicles not worth repairing or replacing
• Budget-conscious individuals who can afford to replace their vehicle if necessary
• Drivers who have paid off their car loan and own their vehicle outright

What Is Full Coverage Auto Insurance?

Full coverage isn’t a specific policy type—it’s a term used to describe a combination of liability, collision, and comprehensive coverage. It protects you financially whether an accident is your fault or not.

Here’s what full coverage typically includes:

• Liability Insurance – As explained above
• Collision Coverage – Pays for damage to your car if you collide with another vehicle or object
• Comprehensive Coverage – Covers non-collision events like theft, vandalism, fire, falling objects, or natural disasters

Who Should Consider Full Coverage Insurance?

• Drivers of new or high-value vehicles
• Anyone with a loan or lease on their vehicle (often required by lenders)
• Drivers who want peace of mind for unexpected events
• People who can’t afford to pay for major repairs or a new vehicle out of pocket

Cost Comparison: Liability vs. Full Coverage

• Liability-only insurance is significantly less expensive—often 30% to 50% lower than full coverage.
• Full coverage insurance costs more because it protects a wider range of scenarios, including damage to your own vehicle.

However, the cost difference should be weighed against what you’d pay out of pocket in the event of an accident or major repair.

How to Decide Which Coverage Is Right for You

Here are a few questions to help guide your decision:

1. What is the current value of your car? If it’s older and not worth much, liability-only might make more sense.
2. Could you afford to replace or repair your car out of pocket? If not, full coverage offers more protection.
3. Do you drive frequently or in high-traffic areas? More exposure on the road may justify the added security of full coverage.
4. Are you financing or leasing your vehicle? Your lender will likely require full coverage until the loan is paid off.

Still unsure? Our agents at Riverfront Insurance Partners can help you calculate your car’s value and compare quote options side-by-side. Learn more on our auto insurance page.

What About Deductibles?

If you opt for full coverage, you’ll choose deductibles for collision and comprehensive portions. A higher deductible lowers your premium, but you’ll pay more out of pocket in the event of a claim. Choose an amount that balances affordability and risk.

There’s no one-size-fits-all answer when it comes to choosing between liability-only and full coverage auto insurance. What works best depends on your vehicle’s value, your financial situation, and your tolerance for risk.

At Riverfront Insurance Partners, we take the time to understand your unique needs so we can help you choose coverage that fits your life—not just a price tag. Whether you’re insuring a new car or looking to cut costs on an older one, we’re here to help.

Call us at 859-512-8325, visit riverfrontinsurancepartners.com, or stop by our Google Maps location to speak with a local insurance expert who knows the roads you drive every day.