When clients visit us here at Illinois Insurance Center, one of the most common questions we get is: “Do I really need both liability and collision coverage in my auto insurance policy?” If you’re asking the same thing, you’re not alone. We get it—insurance terms can sound confusing, and no one wants to overpay. That’s why I always take the time to break down each part of the coverage in plain English, so you can make the right decision for your situation.
Let’s go over the big question—what exactly is in your auto insurance policy? And more importantly, how can you make sure you’re protected on the road without spending more than you need to?
What’s Liability Coverage in an Auto Insurance Policy?
Liability coverage is usually the first thing included in any auto insurance policy. It covers the costs if you’re responsible for injuring someone or damaging their property in a car accident.
There are two main parts of liability coverage:
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Bodily Injury Liability
This helps cover medical bills, lost wages, and legal fees if you hurt someone in an accident. Say you hit another car and the driver ends up in the hospital. Bodily injury liability helps pay for their care—but it won’t cover your injuries. -
Property Damage Liability
If you damage someone else’s property—like their car, mailbox, fence, or even the side of a building—this coverage helps pay to fix or replace it. Again, this won’t cover damage to your own vehicle.
Now, every state has its own laws, but in Illinois, drivers are legally required to carry both types of liability coverage. You can’t legally drive without it.
So Then, What’s Collision Coverage?
Collision coverage steps in when your car hits something—whether it’s another vehicle, a tree, a pole, or even a guardrail. If you’re at fault, liability won’t help fix your car—but collision coverage will.
Even if you’re not at fault, collision coverage can still be useful. Sometimes, it takes a while for fault to be determined, or maybe the other driver doesn’t have enough insurance. With collision coverage, you can get your car repaired quickly without waiting on someone else’s insurance company.
Let me give you a quick example: You’re backing out of a parking spot and accidentally hit a pole. That damage to your bumper won’t be paid for by liability insurance—but if you have collision, it will help with the repair costs.
What’s Legally Required vs. What’s Smart
Now, here’s where it gets interesting. Like I mentioned earlier, liability coverage is required in most states—including here in Illinois. But collision coverage isn’t. That means you’re allowed to drive without it, but should you?
If your car is new, expensive to repair, or still under a loan or lease, having collision coverage in your auto insurance policy is a smart move. If something happens, you won’t be stuck with a huge repair bill.
On the flip side, if your car is older or worth less than a few thousand dollars, it might not make sense to keep collision. Sometimes, the cost of the premium outweighs what you’d get back in a claim.
That’s where we come in. We can help you weigh the pros and cons and run some quick numbers to see what’s best for your situation.
Do You Need Both in Your Auto Insurance Policy?
Here’s how I explain it to most clients: Liability keeps you legal and protects you from paying someone else’s bills. Collision protects your car. Depending on your budget and how much your car is worth, you may need both—or just liability.
Let’s break it down a little further:
✅ Liability only: Keeps your costs down but won’t pay to fix your car. Good for older vehicles or tight budgets.
✅ Collision only: Doesn’t exist on its own—you can’t have collision without liability.
✅ Both: Gives you peace of mind and fuller protection. Best if you rely on your car for work or daily life.
What About Comprehensive Coverage?
This is another question I get all the time. Comprehensive is different from liability and collision—it covers non-driving-related events.
Here are a few examples:
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Someone breaks into your car or smashes the window.
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A deer jumps out and damages your front end.
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A tree branch falls on your roof during a storm.
In those cases, you’d need comprehensive coverage, not collision or liability. So if you’re worried about theft, weather, or animals, it might be time to talk about adding this to your auto insurance policy.
What’s NOT Covered by Either Liability or Collision?
It’s easy to assume your auto insurance policy covers everything, but that’s not true. Here’s what liability and collision don’t take care of:
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Mechanical problems like a failed transmission or worn-out brakes.
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Routine wear and tear like oil changes or old tires.
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Vandalism, fire, or floods—those fall under comprehensive coverage.
So if your car breaks down because the alternator dies, neither collision nor liability will cover it. That’s a maintenance issue, not an accident.
Who Pays When You’re Not at Fault?
If someone else causes the accident, their liability coverage should pay for your injuries and car repairs. But here’s the catch—what if they don’t have insurance? Or they don’t have enough coverage?
That’s when your own policy steps in—if you have uninsured or underinsured motorist coverage. This is another optional piece that can really come in handy.
Want to be sure you’ve got enough coverage? Give us a call at (708) 524-4900 or contact us online through our Contact Page.
Let’s Talk About Cost
We understand that price matters. So how much does it cost to carry both types of coverage in your auto insurance policy?
It depends on:
- Your driving record
- The value of your vehicle
- Where you live
- Your deductible amount
The good news is we work with multiple carriers, so we shop around to find you the best price. And if you’re in areas like Insurance in Aurora, IL or Insurance in Naperville, IL, we can help you find competitive rates fast.
Need Help With Business or Home Coverage?
Many of our clients who review their auto insurance policy also ask about other kinds of protection. We’ve got you covered there, too:
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Looking for commercial vehicle protection? Visit our Commercial Auto Insurance page.
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Need coverage for your house? Learn more about our Homeowners Insurance options.
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Own a business? Explore our Business Insurance plans.
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Contractors should check out our Contractor Insurance page.
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Interested in planning for your family’s future? See our Life Insurance offerings.
And yes, we serve clients across the state—including Insurance in Chicago, IL, Insurance in Joliet, IL, and Insurance in Rockford, IL.
FAQs About Your Auto Insurance Policy
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Is liability coverage enough for older cars?
Sometimes. If your car’s value is low, liability may be enough. But we’ll help you run the numbers. -
Do I need collision if my car is leased?
Yes. Most lenders require full coverage, including collision and comprehensive. -
Will liability pay for my car if I crash?
No. Liability only covers the other person’s costs, not yours. -
How much does collision coverage cost?
That depends on your car, deductible, and driving history. We’ll help you find a good rate. -
What’s the minimum liability coverage in Illinois?
The state minimum is $25,000 for bodily injury per person, but we often recommend higher limits. -
Can I drop collision coverage anytime?
Yes, but we’ll help you weigh the pros and cons first. -
Does comprehensive cover theft?
Yes. It also covers things like fire, animal collisions, and weather damage. -
Do I need uninsured motorist coverage?
It’s not required, but we highly recommend it in case someone hits you and doesn’t have insurance. -
How fast can I get a quote?
We can usually give you a quote within minutes. Just call or contact us. -
Do I need a different policy for work vehicles?
Yes. If you use your car for work, you may need Commercial Auto Insurance.
Final Thoughts: Let’s Review Your Auto Insurance Policy Together
The bottom line? Whether you need liability, collision, or both in your auto insurance policy depends on your car, your budget, and your peace of mind. At Illinois Insurance Center, we’ll walk you through every option, answer every question, and help you make a confident decision.
We’ve been helping drivers across Illinois—from Insurance in Aurora, IL to Insurance in Rockford, IL—find the right protection for over 45 years.
Want to talk in person or over the phone? Reach out to us at (708) 524-4900 or through our Contact Page to get started today. Let’s get you covered the right way.
See Also:
- Why a Life Insurance Payout Can Be Denied in Illinois
- 4 Things Small-Business Owners Should Know About Life Insurance
- Important Do’s and Don’ts After an Auto Accident
- The New Illinois Electronic Insurance Verification System: 4 Things to Know
- 4 Benefits of Bundling Your Auto and Homeowners Insurance
