The law in every state requires motorists to carry some degree of liability insurance. While the amount of coverage required varies across state lines, these policies must include protection against claims for bodily injuries and property damage.
However, some drivers choose insurance policies that go beyond what is required by law. This includes full coverage policies that help pay for your losses as well as the damage you cause to other drivers.
This type of car insurance offers the most protection available following a car wreck. Full coverage car insurance does more than just cover you against claims made by other drivers after an accident. These policies also pay for your own losses.
Full coverage is broken down into three categories: collision, comprehensive, and liability coverage. Collision coverage pays for your damages when you are involved in a collision with another vehicle, a fixed object, or even a pedestrian. Comprehensive coverage pays for your losses in other situations outside of a collision, like hail damage or vandalism. Liability policies pay for claims made against you by other drivers when you are at fault for a crash.
State Minimum Liability
You are under no obligation to purchase full coverage policies. However, you are required by law to have at least a minimum amount of liability coverage in case you are liable for an accident. These requirements set a minimum amount of coverage for three different types of claims: bodily injuries per person, bodily injuries per accident, and property damage per accident.