There is no policy literally called full coverage. The term usually means liability plus collision plus comprehensive.
What each covers
- Liability-only: pays for damage and injuries you cause to others. Pays nothing toward your own car or injuries.
- Full coverage: adds collision (your car in a crash) and comprehensive (theft, hail, fire, animals).
When liability-only makes sense
- Your car is paid off and worth less than about $3,000-$4,000.
- You could afford to replace it out of pocket.
When to keep full coverage
- You have a loan or lease (the lender requires it).
- A total loss would be a financial hardship.
A quick rule: if your annual collision and comprehensive premium is more than about 10% of the car's value, dropping them may be reasonable.