its the same as car insurance, liability pays for the other guys damage and medical. if your bike is stolen, vandalized, wrecked its on your dime. if you have full coverage then it will be taken care of completely no matter what happens. i prsonally don't have full coverage for the only fact of pricing, i pay like 48$ a month with geico. i may raise that, now that i just hit a deer in my talon, luckily that was fully covered. its a personal thing, if you feel your accident prone or live in a place where your bike is not secure, i would go full coverage, but its your decision, you just have to have the state minimum to be legal.