Do You Need Full Coverage Auto Insurance or Just Liability?

Choosing between full coverage and liability-only auto insurance is one of the most common decisions drivers face, and the right answer depends on your specific situation.

What Liability Insurance Covers

Liability insurance is required by law in most states, and helps pay for injuries or property damage you cause to others in an at-fault accident. It typically covers the other party’s medical bills and vehicle repairs, up to your policy limits. It does not cover damage to your vehicle or your accident-related medical expenses. South Carolina sets minimum required limits, but they may not be enough to fully protect your assets if you cause a severe accident.

What Full Coverage Adds

Full coverage generally refers to a policy that includes liability coverage, as well as comprehensive and collision coverage. This combination may include protection for:

• Damage to your vehicle from a collision, regardless of fault
• Damage to your vehicle due to theft, vandalism, weather events or hitting an animal, though coverage can vary by policy
• Your vehicle’s repair or replacement costs up to its actual cash value

Uninsured and Underinsured Motorist Coverage

Uninsured motorist (UM) coverage financially protects you if you are hit by an at-fault driver who has no insurance. Underinsured motorist (UIM) coverage is not required by law, but must be offered by your insurer and can be declined in writing.

UIM coverage financially protects you when the at-fault driver’s policy limits are not enough to cover your damages. A significant number of drivers on South Carolina roads carry no insurance or only minimum limits, so adding UM and UIM coverage is worth considering.

Which Option Makes Sense for You

If you are financing or leasing your vehicle, your lender typically requires full coverage. If your car is paid off and has a lower market value, liability-only coverage may be a reasonable choice. Drivers with newer vehicles or those who cannot easily replace their car without their insurer’s help could benefit from carrying full coverage.

Get Guidance You Can Trust

There is no one-size-fits-all answer for auto insurance. Contact Gamecock Insurance Agency today and let our team help you compare options and choose coverage that financially protects you on the road.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.