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Last reviewed: 15 October 2026

Home › Agent guides › Liability vs. full coverage car insurance

Liability vs. full coverage car insurance: what's the difference?

Short answer: Liability coverage pays for damage and injuries you cause to other people. In the words of the Texas Department of Insurance, it "pays to repair the other driver's car if you caused the accident" and pays the other driver's and passengers' medical bills.[1] "Full coverage" isn't a defined coverage type in the Texas guide. People usually mean liability plus collision and comprehensive, which cover your own car.[1] If you still owe money on your car, TDI says "your lender will require you to have collision and comprehensive coverage."[1] In Texas, the law sets the minimum: TDI says "Texas law requires you to have at least $30,000 of coverage for injuries per person, up to a total of $60,000 per accident, and $25,000 of coverage for property damage."[1] For other states, check your own state insurance department.

The three coverages, in the regulator's words

CoverageWhat it pays for (TDI wording)Source
Liability"pays to repair the other driver's car if you caused the accident. It also pays the other driver's and his or her passenger's medical bills and some other expenses."TDI[1]
Collision"pays to repair or replace your car after an accident."TDI[1]
Comprehensive (other than collision)"pays if your car is stolen or damaged by fire, flood, vandalism or something other than a collision."TDI[1]

How much liability does my state require?

It depends on the state. In Texas, TDI says the law "requires you to have at least $30,000 of coverage for injuries per person, up to a total of $60,000 per accident, and $25,000 of coverage for property damage. This is called 30/60/25 coverage."[1] For other states, use our state pages or your state insurance department (NAIC: state insurance departments).

TDI also cautions: "If you don't have enough liability coverage to pay for the damages and injuries you cause, you might have to pay the rest out of your own pocket."[1]

Deductibles

TDI says you "must pay a deductible for collision, comprehensive, and uninsured/underinsured motorist claims." For example, with a $1,500 collision claim and a $500 deductible, "the insurance company will deduct $500 from your claim amount and pay you $1,000."[1]

FAQ

Is "full coverage" required by law?

State law sets minimum liability coverage. Under TDI's guide, collision and comprehensive are required by your lender if you still owe money on the car, not by the Texas minimum-liability law.[1] Check your own state's rules with your state insurance department.

Does liability insurance cover my own car?

No. Under TDI's descriptions, liability pays for the other driver's car and injuries. Collision and comprehensive cover your car.[1]

Which should I buy?

We don't recommend coverage or insurers. TDI suggests you "think about buying more liability coverage" than the minimum.[1] A licensed agent or your state insurance department can answer questions about your situation.

How do I check an insurer or agent before buying?

See How to check an insurance company is authorized in your state and NAIC Consumer Insurance Search.

References

  1. [1] Texas Department of Insurance, "Auto insurance guide", https://www.tdi.texas.gov/pubs/consumer/cb020.html (accessed 2026-10-15). Quotes are short, attributed passages.

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