Car Insurance Coverage

Car insurance coverage options

Taking a few minutes to learn about the different car insurance coverages can help you understand your options. With this knowledge, you can customize your policy to suit your needs and safeguard what matters most.

Vehicle coverages

The first category of car insurance coverages you should know about are those that will cover damages to your vehicle if an accident occurs. There are two different coverages that do this, collision and comprehensive (also known as other-than-collision coverage).

• Collision: This coverage addresses damage to your vehicle from accidental collisions with other cars or objects, regardless of fault.
  • Example: If you damage your car door backing out of a parking garage, collision coverage will likely cover the repairs.
• Comprehensive: Often referred to as other-than-collision coverage, it’s designed to cover damages to your vehicle caused by incidents like vandalism, flood, theft and falling objects.
  • Example: If your car is stolen, comprehensive coverage may help cover the replacement costs.

Liability coverages

Another important type of coverage, and a coverage that is required in most states, is liability coverage. Liability coverage pays for damages that you may be legally responsible for causing when you’re at fault for an accident. This coverage also includes legal protection for you if you’re sued following an accident.

There are two main types of liability protection your policy can provide: property damage and bodily injury.

• Property damage: This coverage pays for damage you cause to another person’s vehicle or property when you’re at fault for an accident.
  • Example: If you swerve to avoid another car and hit a fence, property damage liability coverage may pay for the repairs.
• Bodily injury: This coverage can pay for things like medical bills, lost wages, and pain and suffering if you're found liable for an accident resulting in injuries to others.
  • Example: If you accidentally run a red light and collide with another vehicle, this coverage could pay the medical expenses for the injured parties.

Injury and medical coverages

You may also become injured in a car accident. Coverages are available for medical payments or personal injury protection (PIP). One or both of these coverages may be available in your state, and they may sometimes be required.

• Medical payments: Also known as medpay coverage, it covers medical expenses incurred by you or your passengers due to an auto accident, regardless of fault. This coverage includes doctor visits, ambulance fees and funeral expenses.
  • Example: If you and a passenger sustain minor injuries in an accident, this coverage will help with hospital bills.
• Personal injury protection (PIP): A comprehensive coverage that extends beyond typical medical expenses. It not only covers immediate health care costs following an accident but also provides support for lost income if you're unable to work during recovery, rehabilitation services and more.
  • Example: If you need physical therapy after a car accident, PIP coverage can help cover those costs.

Uninsured and underinsured motorist coverages

Uninsured and underinsured motorist coverage insurance is another coverage that protects you. If you're involved in an accident where someone else is at fault and they either don't have liability coverage or enough coverage to cover your damages or injuries, uninsured and/or underinsured motorist coverage can help ensure you aren't left bearing the financial burden.

• Uninsured motorist: This coverage comes into play when the at-fault driver doesn’t have insurance, allowing you to recover from the resultant losses such as medical expenses or property repairs.
  • Example: If an uninsured driver causes an accident injuring you, this coverage can help pay for your medical expenses.
• Underinsured motorist: Often included in uninsured motorist coverage, this coverage steps in to bridge the gap when the at-fault driver’s insurance fails to cover the entirety of the damages.
  • Example: If you’re injured in an accident and the at-fault driver’s insurance is insufficient, this coverage can help cover the difference.