Freeway Insurance will help you explore different auto insurance options, including state minimum liability and full coverage.
The main difference between both options includes coverage scope (third-party only versus third-party in the first-party benefits), protection for your vehicle, and cost considerations, as state minimum liability is much cheaper than full coverage, thanks to its limited protections.
A full coverage policy is highly recommended if you want to be adequately covered in the event of an accident. It typically includes a combination of liability, collision, and comprehensive first- and third-party coverage for damages and injuries to you, your passengers, and your vehicle.
One of the main reasons why a full coverage policy is recommended over a state minimum liability is due to the first-party protections it provides. For example, collision and comprehensive pays for collision and non-collision related damages, such as vehicle-to-vehicle, vehicle-to-object, rollover, and non-collision related events like theft, vandalism, and falling tree limbs.
With comprehensive and collision, insurance companies can expect to pay for repairing or replacing your vehicle up to specific liability limits minus your deductible, usually anywhere from $200 to $2,000. Note this coverage does not include roadside assistance, rental car reimbursement, medical payments (MedPay), and personal injury protection (PIP), depending on your state.
State Minimum Liability
All Chrysler 200 drivers must carry a basic level of state minimum liability coverage in case of an accident. Failure to abide by this will result in penalties, fines, and a suspended driver’s license and registration until you can provide proof of insurance.
Liability consists of two types of coverage: bodily injury and property damage to help pay for the repair or replacement of someone else’s vehicle or property that you damaged in an at-fault accident.
Most states have minimum mandated liability limits. For example, Maine requires a minimum 50/100/25 policy or $50,000 in bodily injury per person, $100,000 in bodily injury liability per accident, and $25,000 in property damage per accident.
On top of that, Maine drivers must also carry $50,000/$100,000 in uninsured/underinsured motorist coverage per person/accident, as well as $2,000 in MedPay.