All states require drivers to have minimum liability auto coverage. That way, the driver who causes a crash can be held financially responsible for injuries, deaths, or property damages.
If you drive one of these luxury sedans, having minimum liability coverage ensures you meet your state’s auto insurance mandate. It also costs less than a full coverage policy, which is more expensive.
Full coverage costs more because it includes comprehensive and collision coverage and liability. If you crash into another vehicle while driving, your full coverage policy will typically cover all costs and damages.
By contrast, if you only have minimum liability insurance and the crash-related costs and damages exceed your policy’s coverage threshold amount, you’ll have to pay them out of pocket.
A full-coverage auto policy adds comprehensive and collision coverage to your liability insurance. So if you crash and someone involved in the incident is hurt, your policy will help cover the cost of their medical treatment or hospitalization.
Collision coverage protects you in any crash — whether it’s with a car, another SUV, a commercial truck, or property like a front yard fence or a public building.
The comprehensive element of the policy takes care of damages that aren’t related to a crash. If your sedan gets vandalized or is damaged during a bad storm, for example, your insurer will pay for the car’s repairs in keeping with the policy’s comprehensive coverage.
State Minimum Liability
All states require minimum liability insurance. While the specific requirements vary by state, the auto policy must be enough to help cover any injuries or deaths that result from a crash caused by a driver, as well as any property damage.
Minimum liability insurance mandates in Delaware, for example, require drivers to have an auto policy that provides $25,000 for one person and $50,000 for two or more people for any bodily injuries or deaths resulting from a crash the driver causes and $15,000 and $30,000 in personal injury protection (PIP). It also requires $10,000 in property damage coverage.
Mandating minimum liability coverage guarantees the driver responsible for the accident will be held accountable for the consequences financially.