When it comes to insuring a vehicle, all drivers have multiple auto policy options, including the required state minimum liability or a combination of other coverages plus liability. With a minimum liability policy, you’ll be on the road in your SUV with the basic requirements your state legally mandates.
For example, California requires $15,000 in bodily injury/death for one person, $30,000 for two or more people and $5,000 in property damage. When you think about how much damage your Compass could do to a smaller vehicle in a wreck, you may understand why some drivers choose to increase their levels of minimum liability insurance.
A full coverage policy provides liability, collision, and comprehensive protection. Full coverage helps pay for bodily injuries and property damages costs if you cause an accident or someone crashes into you. Full coverage also helps pay for repairs or replacement of your vehicle if it is damaged during a storm or if it is stolen, for example.
Minimum liability policies pay out for the other parties’ injuries and damages if you cause an accident, not yours. A basic policy won’t protect your SUV if it’s vandalized or damaged during a weather event.
A full coverage policy protects you from financial obligations that arise if you’re responsible for a crash or are involved in one that someone else caused. It also takes care of repairs if your SUV gets damaged by vandals or by a storm or other weather event.
That’s because this type of policy offers three layers of protection: liability, collision, and comprehensive.
The liability part takes care of anyone who gets hurt in a crash you cause, along with any property damage that results from it. It won’t cover any losses you experience, but the collision aspect of the policy will.
Whether you cause a crash or someone else does, the collision part protects you in any kind of accident — no matter if the other vehicle was a sedan, an SUV, a commercial truck, or property like a fence or a building.
The comprehensive part pays for damages that aren’t related to a crash. If a tree lands on your SUV crossover during a tornado or a hurricane and damages it, for example, comprehensive will pay for repairs or replacement.
State Minimum Liability
All states require drivers to have some form of basic auto coverage. Mandates vary by state, though. In the case of New Hampshire, for example, drivers must prove that they can pay for all crash-related costs if an accident happens.
A minimum liability policy covers crash-related costs involving bodily injuries caused to others and damage to property. Even though this kind of policy costs less than full coverage, drivers with a minimum liability policy often have to pay costs and damages out of pocket for their own repairs and medical costs.