Understand Common Auto Insurance Coverage Options
Learn the general purpose of common coverage types before contacting a licensed insurance provider.
What Different Coverages Generally Protect
Bodily Injury Liability
Generally helps pay for covered injuries you cause to other people in an accident, subject to the policy’s limits, exclusions and conditions.
It normally does not pay for your own injuries.
Property Damage Liability
Generally helps pay for covered damage you cause to another person’s vehicle or property.
Required limits and available options vary by state.
Collision Coverage
Generally helps pay for covered damage to your vehicle after a collision, regardless of fault, minus the applicable deductible.
Lenders may require collision coverage on financed or leased vehicles.
Comprehensive Coverage
Generally helps cover certain non-collision losses, such as theft, vandalism, fire, hail, flooding, animal contact or falling objects.
A deductible commonly applies.
Uninsured Motorist Coverage
May help protect you when a covered loss is caused by a driver who does not have insurance.
Requirements and covered losses vary by state and policy.
Underinsured Motorist Coverage
May help when an at-fault driver has insurance but their applicable limit is insufficient to cover a qualifying loss.
Medical Payments Coverage
May help pay certain covered medical expenses for you or your passengers following an accident, regardless of fault.
Personal Injury Protection
Depending on state law and policy terms, PIP may help cover certain medical expenses, lost income or related costs after an accident.
Liability-Only and Broader Coverage
| Coverage Approach | General Description | Important Consideration |
|---|---|---|
| Liability-focused coverage | Generally focuses on qualifying injuries or damage caused to other people. | It normally does not cover physical damage to your own vehicle. |
| Liability plus collision | Adds protection that may apply to covered collision damage to your vehicle. | A deductible generally applies to collision claims. |
| Liability, collision and comprehensive | Adds broader physical-damage protection for certain collision and non-collision losses. | “Full coverage” is an informal expression and does not mean every possible loss is covered. |
Understanding Policy Limits
A policy limit is generally the maximum amount an insurer will pay for a covered loss under a particular coverage, subject to policy terms.
Higher limits may provide more protection but can also increase the premium.
Understanding Deductibles
A deductible is generally the amount the policyholder pays toward a covered loss before applicable insurance payments begin.
A higher deductible may reduce the premium but increase personal costs after a covered loss.
Additional Coverage Options
Depending on the insurer and state, optional features may include:
- Rental reimbursement
- Roadside assistance
- Loan or lease payoff coverage
- New-car replacement
- Original-equipment manufacturer parts coverage
- Rideshare coverage
- Custom-equipment coverage
Review an Educational Cost Estimate
Explore how location, vehicle details and coverage selections may affect a general estimated range.
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