Freeway Insurance offers several types of policies, including state minimum liability and full coverage.
The main difference between state minimum liability and full coverage is their extent of protection. The first only offers third-party benefits, paying for the cost of damages or injuries sustained by other passengers in an at-fault accident you cause. In turn, full coverage provides first- and third-party benefits, covering the cost of damages and injuries to you, your vehicle, and your passengers up to specific liability limits.
The term “full coverage” describes a policy that combines liability, collision, and comprehensive coverage.
Drivers may also choose to add optional protections like roadside assistance, rental car reimbursement, personal injury protection (PIP), and uninsured/underinsured motorist coverage. Although not required in most states, these extra options typically cost several more dollars a year and can provide greater peace of mind after an accident.
As full coverage typically combines first-party benefits like damage protection (collision/comprehensive) and liability, expect to pay several hundred dollars more per year than a state minimum liability policy. With collision and comprehensive coverage, insurance will cover the cost of repairing or replacing your vehicle minus your deductible, usually anywhere from $200 to $2,000.
State Minimum Liability
All Taurus drivers must have an active auto insurance policy with at least liability-only benefits in the form of bodily injury and property damage protection.
Every state has its own required liability limits. For example, Mississippi requires that all drivers 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 per accident.
Although uninsured/underinsured motorist coverage is not required in Mississippi, we highly recommend carrying it if you live there or even if you don’t (assuming your state does not require it). According to the Insurance Information Institute (III), Mississippi leads the nation in the estimated percentage of uninsured drivers at close to 30% (2019).
If you can afford it, we highly recommend carrying a policy with liability limits well above your state’s required minimums. For example, the average cost of a new vehicle is now over $40,000. That means a sideswipe or rear-end collision can easily result in $35,000 worth of damage, which could eclipse some state’s minimums for property damage liability, forcing you to pay out of pocket to cover remaining expenses.