Freeway Insurance drivers can benefit from many types of policies, including state minimum liability, full coverage and others such as personal injury protection (PIP), although some states require it.
The main difference between state minimum and full coverage is what it covers. State minimum liability provides third-party benefits only (paying for damages and injuries sustained by others up to specified limits). In contrast, full coverage includes first and third-party benefits to you, your vehicle, and your passengers.
A full coverage policy comprises three primary types: liability, collision, and comprehensive coverage.
Liability pays for injuries or property damages to others in an at-fault accident you cause, whereas collision and comprehensive pay for damages caused by collision and non-collision related events such as theft, vandalism, and falling tree limbs.
Although not a part of full coverage, states may also require that you apply for uninsured or underinsured motorist coverage, which compensates you for injuries and damages caused by drivers that are not covered/inadequately covered. As of this writing, more than 20 states require uninsured motorist, including Illinois and Kansas.
Other add-ons to your policy may include rental reimbursement, roadside assistance, and medical payments (MedPay). Although not required in most states, having greater peace of mind on the road is nice.
State Minimum Liability
State minimum liability is the minimum liability coverage your particular state requires. Liability is expressed as three numbers, indicating limits for bodily injury liability per person, bodily injury liability per accident, and property damage liability.
For example, all Colorado drivers must carry a 25/50/15 policy, which translates to $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, and $15,000 in property damage liability per accident.
Benefits to obtaining state minimum liability include adhering to your state’s legal requirements, enhanced financial protection, and greater peace of mind knowing you are adequately covered in case of an accident.