Coverage Comparison
What Each One Actually Covers
Coverage by Scenario
What Pays in Each Situation?
| Scenario | LIABILITY ONLY | FULL COVERAGE |
|---|---|---|
| You hit another car and injure the driver | Covered (up to BI limit) | Covered |
| You total the other driver's car | Covered (up to PD limit) | Covered |
| You hit a tree (single-vehicle crash) | Not covered | Covered (collision) |
| Your car is stolen | Not covered | Covered (comprehensive) |
| Hail damages your car | Not covered | Covered (comprehensive) |
| You hit a deer | Not covered | Covered (comprehensive) |
| An uninsured driver hits your parked car | Not covered | Covered (collision) |
| Flood damages your car | Not covered | Covered (comprehensive) |
The Decision Framework
The 10% Rule, Explained
The 10% rule states: if your annual full-coverage premium exceeds 10% of your car's current market value, dropping collision and comprehensive is financially rational. The rule works because over many policy periods, you're paying more in premiums than the expected value of claims on an asset that cheap.
Worked example: A 2016 Honda Civic worth $6,000 with full coverage at $1,100/yr = 18.3% ratio. Drop full coverage, keep 100/300/100 liability plus UM/UIM, save $520/yr.
Important: the rule only governs collision and comprehensive. Your liability limits are a separate decision, and state minimums are not enough for anyone with assets to protect.
When to Drop vs When to Keep Full Coverage
Consider Dropping Full Coverage When...
Cost Snapshot / MoneyGeek 2026
How Much More Does Full Coverage Cost?
National averages (MoneyGeek, 2026): minimum liability-only runs about $61/month ($727/year) while full coverage averages about $216/month ($2,575/year), up roughly 11% year over year. The gap is widest in high-cost states like Florida, Louisiana, Michigan, and Nevada, and narrowest in low-density states like Maine, Vermont, Idaho, and New Hampshire.
The physical-damage portion (collision plus comprehensive) is typically 40-50% of a full-coverage premium, so dropping to liability-only, while keeping strong liability limits, saves roughly 40-50% of your bill. The cheapest states share low population density, low litigation rates, and low uninsured-driver percentages.
Editorial Stance
State Minimums Are Not Enough
Most states require 25/50/25: $25,000 per person, $50,000 per accident, $25,000 property damage. That sounds like a lot until you model a real at-fault accident: three occupants in the other car, two hospitalized with broken bones and two weeks in care, plus a totaled 2022 Toyota Camry worth $28,000. Total liability exposure: easily $120,000-$180,000. Your 25/50/25 covers $75,000. You personally owe the rest: your home, your savings, future wages.
This site recommends 100/300/100 as the baseline for anyone with a home or savings. Moving from 25/50/25 to 100/300/100 typically adds only $60-$120/year to your premium because catastrophic at-fault claims are rare.
Third Coverage Decision
Uninsured Motorist Coverage: Don't Skip This
Uninsured/underinsured motorist coverage (UM/UIM) is separate from both liability and full coverage. It pays your medical bills, lost wages, and car repair costs when the driver who hits you has no insurance or not enough. It costs $3-6/month for 25/50 limits, one of the most cost-effective protections available.
This matters most if you drop full coverage. In Mississippi (28% uninsured), New Mexico (24%), Tennessee (21%), or Florida (21%), there is a real chance the person who totals your car carries no insurance. If you drop collision, UM with property damage component (UMPD) becomes your backstop. If you're also deciding between buying and leasing a car, see our sister site buyvsleasecar.com for how the buy-vs-lease decision affects your insurance requirements. And if you're weighing costly repairs on an older car, check ignitioncoilreplacementcost.com for a sense of what typical repair costs look like vs a car's remaining value.
Full UM/UIM guide with state-by-state uninsured driver rates
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Frequently Asked Questions