Freeway Insurance can help you navigate the complex world of auto insurance and find the right policy for you and your family, whether that is state minimum liability, full coverage or some other combination.
The main difference between both policy types lies in the protection they provide. One provides third-party-only benefits, and the other offers first and third-party benefits for greater coverage in the event of an accident.
The term full coverage refers to liability, collision, and comprehensive. All three provide first and third-party benefits, with collision and comprehensive covering collision-related and non-collision-related events like vehicle-to-vehicle hits/rollovers, theft, vandalism, falling tree limbs, and natural disasters.
Thanks to the greater protection full coverage provides, expect to pay several hundred dollars more per year over state minimum liability. However, it is well worth it, especially if you drive a lot.
You can also add optional selections like rental car reimbursement, roadside assistance, and Medical Payments (medPay) coverage. Although not required in most states, they are typically purchased for greater peace of mind.
State Minimum Liability
State-required minimum liability refers to the minimum liability coverage all drivers in your state must carry. Using Oregon as an example, drivers must have a minimum of $25,000 in bodily injury per person, $50,000 in bodily injury per accident, and $20,000 in property damage per accident.
Remember that these coverages may not be enough in a severe accident. The higher your liability limits, the less likely you are to pay out-of-pocket costs in an at-fault accident.
Additionally, state minimum liability only provides third-party benefits with liability-only coverage, paying for damages and injuries sustained by others, not you, your vehicle/property, or your passengers.