If you have a loan on the car, the choice to purchase full coverage or liability alone won’t be left up to you. Lenders require that you carry full coverage so that their interests are covered in the event of a total loss accident.

Of course, that loan could be from a private party (i.e. Mom). If you didn’t have enough money to buy the car outright, you probably don’t have enough to pay for the car if a total loss accident or theft should occur. In that case, it may be up to you, but you should err on the side of caution and buy the full coverage.

Although we do our best to offer you accurate and current auto insurance advice, we are not responsible for any negative consequences you may encounter after reading this advice. Insurance problems are often complex and can hinge on facts not provided in your submitted question. For this reason, you should not use this advice as a basis for any decision. We provide these answers for information purposes only, with the intention of steering you towards making your own conclusions about how to act or refrain from acting. Because we are not lawyers, no information on this site should be used as legal advice.