Drivers can benefit from different auto insurance policy types, including state minimum liability and full coverage.
Full coverage is the term used to describe auto insurance policies that combine bodily injury and property damage liability, as well as collision and comprehensive. Full provides first-party benefits, plus third-party benefits that pay for damages to someone else’s injuries or property.
These first-party benefits extend to non-collision-related events (comprehensive), protecting your vehicle from natural disasters, falling tree limbs, theft, vandalism, and other scenarios outside of your direct control.
You may also choose to include optional selections such as roadside assistance, rental car reimbursement, uninsured/underinsured motorist, and medical payments (MedPay) coverage.
Even if it costs several hundred dollars more annually, full coverage is recommended over state minimum liability for greater peace of mind on the road.
State Minimum Liability
State minimum liability ensures a basic level of protection to drivers, providing third-party benefits if you cause damage or injuries to others in an accident.
State minimum liability insurance generally comprises two types of coverage, bodily injury and property damage liability. Bodily injury liability covers the cost of lost income, medical expenses, and similar damages incurred by third-party drivers in an at-fault accident you cause. In turn, property damage liability covers the cost of damages to third-party vehicles and property (e.g., homes, fences, and mailboxes) up to maximum liability limits.
Every state requires its drivers to carry minimum liability limits. For example, Colorado requires all its drivers to have at least $25,000 bodily injury liability coverage per person, $50,000 bodily injury liability coverage per accident, and $15,000 property damage liability coverage per accident.