Drivers can benefit from all types of auto insurance policies, including state minimum liability and full coverage.
The main difference between both coverage types is that one provides third-party-only benefits, and the latter provides first- and third-party benefits that cover damages and injuries sustained by you, your vehicle, and your passengers.
A full coverage policy packages three important types of coverage: liability, collision and comprehensive insurance.
Liability coverage pays out claims associated with injuries or property damage to others (assuming you are determined to be at fault). In contrast, collision pays for damages to your vehicle caused by collision-related incidents such as vehicle-to-vehicle, vehicle-to-object, and rollover collisions.
Comprehensive coverage covers non-collision-related scenarios, paying for damages due to theft, vandalism, falling objects, animal collisions, and natural disasters.
We recommend you carry full coverage over state minimum liability for its broader scope, providing first and third-party benefits.
State Minimum Liability
All drivers must carry minimum liability coverage to drive legally. Referred to as liability, it includes bodily injury and property damage liability, with every state requiring minimum limits.
Using Georgia as an example, drivers must carry a minimum of $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, and $25,000 in property damage liability.
Note that state minimum liability only extends to paying for damages and injuries sustained by others and accidents you cause. It does not provide first-party benefits. To enjoy first-party benefits, you must include collision and comprehensive, better served by a full coverage policy.