Coverage
Guide

Liability coverage is the foundation of nearly every auto policy. It pays for damages and injuries you cause to other people and their property when you're at fault in an accident. It does not cover repairs to your own vehicle or your own injuries.

Limits are typically expressed as three numbers — for example, 100/300/100 — representing thousands of dollars: $100,000 per injured person, $300,000 per accident total for bodily injury, and $100,000 for property damage.

Collision coverage pays for repairs to your own vehicle when it's damaged in a crash — whether with another car or a fixed object like a guardrail or utility pole. It applies regardless of who caused the accident.

When you file a collision claim, you pay your chosen deductible and your insurer covers the remainder, up to your vehicle's actual cash value. Common deductibles range from $250 to $2,000. If you're financing or leasing a vehicle, your lender typically requires this coverage.

Comprehensive coverage handles damage to your vehicle from events other than collisions. This includes theft, vandalism, fire, flooding, hail, windstorms, falling objects, and animal strikes.

Like collision, comprehensive pays up to your vehicle's actual cash value minus your deductible. It's frequently paired with collision and required by most lenders. For older vehicles with low market value, you may want to evaluate whether the premium cost is proportionate to the potential payout.

Despite legal requirements, a significant share of drivers carry no insurance or have limits far below what a serious accident can cost. Uninsured motorist (UM) coverage steps in to cover your medical expenses and certain other losses when an at-fault driver has no insurance at all.

Underinsured motorist (UIM) coverage handles situations where the at-fault driver has insurance, but their limits aren't sufficient to cover the full extent of your damages.

Medical Payments coverage (MedPay) pays for you and your passengers' medical expenses resulting from a covered accident, regardless of fault. It can cover hospital and surgical costs, and in some cases, funeral expenses.

Personal Injury Protection (PIP) is broader — required in no-fault states, it can also cover lost wages, rehabilitation costs, and household services beyond just medical bills. Not all states offer PIP as an option.

Beyond the core coverage types, most policies offer optional add-ons that can fill specific gaps. Here are the most common ones and what they actually do.