What Does Auto Insurance Cover?

Auto insurance is a type of coverage all car owners need to have. It protects you, your passengers, and other drivers on the road in case of an accident. However, not all auto insurance policies are the same. Understanding what auto insurance covers is important before you purchase a policy. Here is a breakdown of different types of auto insurance and what they cover.

Liability Insurance

Liability insurance is the most basic type of auto insurance. It covers damages and injuries that you cause to others on the road. This includes property damage, medical expenses, and legal expenses. If you are at fault in an accident and damage another driver’s car or injure them, liability insurance will pay for their damages and injuries up to your policy limits.

Liability insurance is usually split into two categories: bodily injury liability and property damage liability. Bodily injury liability covers the cost of injuries you cause to others in an accident. Property damage liability covers the cost of damage you cause to other vehicles or property in an accident.

It is important to note that liability insurance does not cover damages or injuries to you or your own vehicle. It only covers damages and injuries to others.

Collision Insurance

Collision insurance covers damages to your own vehicle in case of an accident, regardless of who is at fault. This includes collisions with other vehicles, objects, and even potholes. Collision insurance will pay for the cost of repairs or replacement of your vehicle up to your policy limits.

Collision insurance is recommended for those who have a newer car or a car that is financed. However, if you have an older car that is not worth much, collision insurance may not be necessary.

Comprehensive Insurance

Comprehensive insurance covers damages to your vehicle that are not caused by a collision. This includes theft, vandalism, natural disasters, and animal collisions. If your car is damaged or stolen, comprehensive insurance will pay for the cost of repairs or replacement up to your policy limits.

Comprehensive insurance is recommended for those who have a newer car or a car that is financed. However, if you have an older car that is not worth much, comprehensive insurance may not be necessary.

Uninsured/Underinsured Motorist Insurance

Uninsured/underinsured motorist insurance covers damages and injuries caused by another driver who does not have insurance or does not have enough insurance to cover your damages and injuries. This includes hit-and-run accidents. Uninsured/underinsured motorist insurance will pay for your damages and injuries up to your policy limits.

This type of insurance is not required in all states, but it is strongly recommended. It protects you in case you are in an accident with a driver who does not have insurance or does not have enough insurance.

Personal Injury Protection (PIP) Insurance

Personal injury protection (PIP) insurance covers medical expenses and lost wages for you and your passengers if you are in an accident, regardless of who is at fault. PIP insurance may also cover funeral expenses and other expenses related to the accident. PIP insurance is required in some states and optional in others.

Roadside Assistance

Roadside assistance is an optional type of auto insurance. It provides assistance if you have a flat tire, run out of gas, or need a tow. Roadside assistance may also provide other types of assistance, such as lockout service and jump-starts.

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