JUSTICENTER Personal Injury Lawyers | June 10, 2025 | Personal Injury
If you drive a car in California, you almost certainly need insurance in some form or fashion. However, many people are confused by the terms “full coverage” and “liability-only” insurance. Learning about the difference can help you decide which type of insurance is right for you.
In this blog post, we’ll clearly explain these two types of insurance and discuss which one might be better for your situation.
What Does Liability Insurance Cover in California?
Liability insurance is the minimum coverage required by California law. This type of insurance pays for the damages you cause to other people or their property in a car accident. It covers:
- Bodily injury liability: Pays medical bills and expenses for others injured in an accident you caused.
- Property damage liability: Covers repairs or replacement costs for damage you caused to someone else’s vehicle or property.
Liability insurance does not cover your own injuries or vehicle damage if you’re at fault. This means if you’re responsible for an accident, you’ll have to pay out of pocket to fix your own car or cover your own medical expenses.
As of January 1, 2025, California law now requires minimum liability coverage limits of:
- $30,000 for bodily injury per person
- $60,000 for total bodily injury per accident
- $15,000 for property damage per accident
These minimums often aren’t enough to fully protect you after a serious accident, which is where higher limits or other types of coverages might be beneficial.
What Does Full Coverage Insurance Include?
Full coverage insurance means having liability insurance plus additional coverage that protects you and your vehicle, even if you cause a car accident. In California, full coverage typically includes:
- Collision coverage: Pays to repair or replace your car after an accident, no matter who caused it
- Comprehensive coverage: Pays for damages to your car caused by theft, vandalism, weather events, or hitting animals
Some drivers also add optional coverages, like uninsured motorist coverage, rental reimbursement, or roadside assistance. With full coverage insurance, you’re more protected financially if an accident happens.
Comparing Costs: Liability vs. Full Coverage
Liability insurance usually costs significantly less than full coverage because it offers less protection. Many people choose liability-only insurance if their car isn’t worth much or if they need the cheapest possible insurance option.
Full coverage costs more because it provides more extensive protection. However, the extra cost can save you from large out-of-pocket expenses after an accident, especially if you drive a newer or more expensive car.
When Should You Choose Liability-Only Insurance?
You might pick liability-only insurance if:
- Your vehicle is older or has low value
- You need the most affordable insurance to meet legal requirements
- You have enough savings to cover potential repair or replacement costs yourself
Carrying only liability insurance is a riskier choice, but it can make financial sense if your car isn’t valuable or you can’t afford higher premiums.
When Is Full Coverage Insurance the Better Option?
Alternatively, full coverage insurance is generally best if:
- You have a newer or valuable vehicle
- You can’t afford to replace or repair your vehicle if it’s damaged
- You have a car loan or lease that requires full coverage
If you’re worried about being financially secure after an accident, full coverage is usually the safer option. The higher monthly cost is often worth the peace of mind.
Contact an Experienced Car Accident Attorney in California for a Free Consultation
No matter which type of insurance you choose, accidents can still happen. If you’ve been injured in a car accident in California, it’s important to seek legal advice right away.
A skilled California car accident attorney can explain your rights and fight for the compensation you deserve. Most attorneys offer free consultations and only charge if they successfully recover money for you.
Contact our law firm JUSTICENTER Personal Injury Lawyers today or call us at (833) 852-3600 to get started with your case.
Our main office is in Encino, CA, but we serve all through Los Angeles County.
JUSTICENTER Personal Injury Lawyers
16633 Ventura Blvd suite 1011,
Encino, CA 91436
