Drivers can benefit from many types of auto insurance policies, including but not limited to state minimum liability and full.
A full coverage policy offers significantly greater protections than a state minimum liability policy. It generally consists of liability, collision, and comprehensive insurance with optional selections like roadside assistance, rental car reimbursement, underinsured/uninsured motorist coverage (UIM/UM), and medical payments (MedPay) coverage.
Liability offers third-party benefits, paying for the cost of damages or injury sustained by other drivers in an at-fault accident you cause.
Collision covers all damages related to accidents and includes help paying for repair or replacement up to specified liability limits. In turn, comprehensive pays for non-collision-related damages caused by things outside your control, such as theft, falling tree limbs, and vandalism.
A single car accident could cause $84,000 in hospital bills and $16,000 in property damage. Both eclipse the required minimums in California. Failure to obtain full coverage could result in thousands and thousands of dollars in out-of-pocket costs, wreaking havoc on your monthly budgeting for the months and years to come.
State Minimum Liability
Every state requires drivers to carry minimum liability insurance to drive legally within its borders.
A state minimum liability policy generally consists of two add-ons: bodily injury and property damage liability, up to specific liability limits.
For example, Texas drivers have less strict liability limits ($30,000 bodily injury liability per person, $60,000 bodily injury liability coverage per accident, and $25,000 in property damage liability).
In a severe accident, state minimum liability insurance may not be enough. Therefore, purchasing additional coverage to cover a broader range of scenarios is good.