Types of Car Insurance Coverage

Types of car insurance coverage are broken down, according to purpose, but are generally combined into one policy. Coverage descriptions are general information and not statements of contract because policy provisions, endorsements, limits and requirements vary by state. The most common coverage are:

• Liability
  When an insured is legally responsible, liability coverage pays for accidental bodily injury and property damages to others. Bodily injury damages include medical expenses, pain and suffering, lost wages, and other special damages. Property damage includes damaged property and may include loss of use. Liability coverage also pays defense and court costs. State laws usually determine the minimum amounts, but higher amounts are available.
   
• Personal Injury Protection
  Required in some states. Pays medical expenses for covered persons, regardless of fault, for treatment due to an auto accident. It may also pay for rehabilitation, lost earnings, replacement of services (child care if a parent is disabled, for example) and funeral expenses.
   
• Medical Payments
  Available in most states. Pays medical and funeral expenses for covered persons, regardless of fault, when those expenses are related to an auto accident.
   
• Collision
  Pays for damage to a covered vehicle caused by collision with another object or by upset of the car. A deductible is required.
   
• Comprehensive
  Pays for loss of or damage to a covered vehicle, except loss caused by collision or upset. Examples include loss caused by fire, wind, hail, flood, vandalism, theft or impact with an animal. A deductible may apply.
   
• Uninsured Motorist
  Pays damages when a covered person is injured in an auto accident caused by a driver who does not have liability insurance. In some states this coverage may also pay for property damage.
   
• Underinsured Motorist
  Pays damages when a covered person is injured in an auto accident caused by another driver who has insufficient liability insurance. Application of this coverage varies by state and depends upon policy provisions.
   
• Rental Reimbursement
  Pays expenses incurred for renting a car when your auto is disabled due to an auto accident. Daily allowances or limits vary by state or policy provisions.
   
• Emergency Road Service
  Pays expenses incurred for having your auto towed as a result of a breakdown. Towing limits vary by state or policy provisions.