Full coverage or liability only: how to decide
Full coverage is not a real policy. It is liability plus collision plus comprehensive, and here is how to tell which pieces your car still needs.
- Full coverage is not a product you can buy, it is a phrase for three coverages bought together: liability, collision and comprehensive.
- Liability pays for the harm you cause other people, collision repairs your own car after a crash, and comprehensive covers hail, theft and glass.
- Once a car is paid off, compare what the car is worth today, minus your deductible, against what those two extra coverages add to your bill each year.
Full coverage is not a product you can buy, and no policy is labeled that way. It is a phrase people use for three coverages bought together: liability, collision and comprehensive. Knowing what each one pays for is what lets you decide which ones your car still needs.
The three pieces
- Liability, which pays for the damage and the injuries you cause to other people. Texas requires it. See the Texas minimum.
- Collision, which pays to repair your own car after a crash, no matter who was at fault.
- Comprehensive, which pays for damage that is not a crash: hail, theft, fire, flood, vandalism, a cracked windshield, hitting a deer.
| What happened | Liability only | Full coverage |
|---|---|---|
| You cause a crash and damage their car | Covered | Covered |
| You cause a crash and damage your own car | Not covered | Collision pays |
| Hail dents the hood | Not covered | Comprehensive pays |
| Your car is stolen | Not covered | Comprehensive pays |
| Road debris cracks the windshield | Not covered | Comprehensive pays |
When you have no choice
If your car is financed or leased, the lender requires collision and comprehensive and puts its own name on the policy. Let the coverage lapse and the lender buys a policy on the car itself, called force placed coverage, and passes the cost to you. It costs you more than arranging the coverage yourself, and it protects the lender, not your car. Here is how lender requirements work.
When dropping collision makes sense
Once the car is paid off, the choice is yours again, so do the math. Start with the car's actual cash value, which is what it is worth today, not what you paid for it. Subtract your deductible, the amount you pay yourself before the coverage pays anything. See how the deductible works.
Say the car is a 2009 sedan worth 3,000 dollars and your deductible is 1,000 dollars. The most collision can ever pay you on that car is 2,000 dollars. Now look at your own bill and see what collision and comprehensive add each year. When that yearly amount comes close to a third of the 2,000, dropping collision is defensible.
Do not drop comprehensive in South Texas
Comprehensive usually costs less than collision, and it is the piece that pays for hail. Hail claims are common enough here that comprehensive keeps earning its place on an older car, long after collision stops making sense. It also covers theft and glass, and many policies repair a windshield with a small deductible or none at all. See how a hail claim works.
What full coverage still does not include
- The gap between what you still owe on the loan and what the car is worth, which takes gap coverage.
- A rental car while yours is in the shop, unless you added rental reimbursement. See what your policy does with a rental car.
- Your own injuries, beyond what personal injury protection (PIP) or medical payments coverage pays.
- Personal belongings stolen out of the car, which usually falls to your homeowners or renters insurance.
We will run both numbers
Tell us the year and the mileage and we will show you the payoff math on your own car, with collision and without it. Call our McAllen office at (956) 687 3334, or use the ZIP form on this page. Se habla español.
Common follow-up questions
Does full coverage mean everything is covered?
No. It means liability, collision and comprehensive together. A rental car, gap coverage and roadside help are separate options you have to ask for.
Can I keep comprehensive and drop collision?
Yes. On an older paid off car that pairing is often the right answer here, because comprehensive is the part that pays for hail.
Will my rate drop a lot if I go liability only?
It depends on the vehicle. Liability is a large share of what you pay, so the change is usually smaller than people expect. We can run both versions on your own car and show you the difference.
Need a quote?
Enter your ZIP code to get started. Ten questions, about two minutes.
Or call (956) 687 3334, Monday to Friday, 9 AM to 6 PM.
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Gerino Alejos
Licensed insurance agent · License 3128710 · NPN 18243381
Owner of McAllen Insurance Group, an independent agency on North 10th Street in McAllen. Works with clients across Hidalgo, Cameron and Starr counties on Medicare, Marketplace health, life and auto coverage. Se habla español.