Below are some of the standard types of coverage included in an auto insurance policy:
Liability Insurance
Liability insurance covers the property damage done to other cars and injuries to other drivers and their passengers from an accident you caused. However, it doesn’t offer financial protection for your vehicle, and it doesn’t cover medical bills for you or your passengers after the crash.
Collision Insurance
Collision insurance covers the costs to repair or replace your vehicle after it’s been in an accident with another vehicle. Unlike liability insurance, with collision coverage, it doesn’t matter who’s at fault for the accident.
Comprehensive Insurance
A car accident is only one way your vehicle could be damaged. Comprehensive coverage fills the gaps by covering repairs or replacement costs for your vehicle that result from non-collision causes including fire damage, theft, vandalism or falling objects like hail or tree limbs.
Protective Injury Protection (PIP)
PIP insurance helps cover medical expenses for you and your passengers if you suffer injuries from an accident. As with collision coverage, it doesn’t matter who’s at fault. PIP can also cover funeral expenses, as well as lost wages if you have to miss work due to injuries and follow-up care.
Medical Payments Coverage (MedPay)
MedPay coverage is another type of supplemental health insurance you may be able to add to your car insurance policy. It helps cover your and your passengers’ injuries and funeral expenses after an accident, regardless of who’s at fault. You can also use it to cover your health insurance deductibles and copays when you receive medical care related to the accident.
Underinsured/Uninsured Motorist Coverage
About one in eight drivers drove without car insurance in 2019, according to the Insurance Information Institute. If you’re involved in an accident with an uninsured motorist, you’ll need financial protection. This is where underinsured/uninsured motorist coverage comes in handy.
It can also help pay your repair and medical expenses if you’re involved in an accident with an at-fault driver who has insurance but has liability limits too low to cover your costs.
