Depending on your location, you may have a range of options available for protection and coverage, as well as some that are required. The two basic ones are full and state minimum.
Full coverage offers substantially greater protection. It includes state minimum liability and comprehensive and collision coverage, which protects you financially in wrecks, as well as events out of your control, such as hail damage and theft.
Depending on the insurer, policyholders pay a few hundred dollars more per year for this benefit. However, it is worth the greater peace of mind knowing you are better covered in the event of an accident. Motorists also add increased protection in the form of roadside assistance and other optional benefits such as rental vehicle reimbursement.
If you are leasing or financing, expect to be required to pay for this policy. Banks and lenders want to preserve their vehicle’s value until you’ve paid it off.
State Minimum Liability
State minimum liability represents the minimum amount of coverage required by the state where you reside. Different states have different limits.
For example, Texas drivers must meet liability limits of $30,000 for bodily injury (per person), $60,000 for bodily injury (per accident), and $25,000 in property damage liability per accident.
In turn, Louisiana drivers must carry limits of 15/30/25.
This will not pay for damages sustained by you and your property. It will only cover the costs of injuries/damages suffered by other people and their property in an accident for which you are determined to be at fault.
Some states, such as Kansas, require uninsured motorist coverage and personal injury protection, in addition to liability.