What Is the Difference Between Liability Insurance & Full Coverage?

Liability insurance consists of two types of policies for your automobile, both protecting you financially when your automobile causes an accident. Full coverage refers to an automobile insurance package that includes liability policies, collision and comprehensive policies, and can include uninsured motorist policies.

Bodily Injury Liability Insurance

Bodily injury liability insurance pays for the medical expenses of other people who might be injured by your automobile, but does not cover your own injuries or damage to any property. You can purchase this type of policy as single coverage, or as part of a full coverage package.

Property Damage Liability Insurance

Property damage liability insurance pays for damage to someone else's property caused by your automobile, but does not pay for repairs to your automobile or bodily injury costs. You can purchase this type of policy along with a bodily injury policy, separately or as part of a full coverage package.

Collision Insurance

Collision insurance pays for repairs to your car when damaged in a collision. Full coverage insurance packages include collision insurance.

Comprehensive Insurance

Comprehensive insurance pays to repair your automobile when damaged in some way other than a collision, including flooding and vandalism. Full coverage insurance packages include comprehensive insurance.

Uninsured Motorist Insurance

Uninsured motorist insurance consists of bodily injury and property damage policies, and pay for your injuries or car damage when caused by an uninsured driver. Full coverage insurance packages can include uninsured motorist insurance policies.

References

• Insure U: A Consumer's Guide to Auto Insurance
• CarInsurance.com: What does "full coverage" mean?
• Insurance Information Institute: Auto Insurance

Resources

• Consumer and Family Economics
• Insure U
• Insurance Information Institute