What does auto insurance cover?

Liability Coverage

Liability coverage is often required by law and includes two main components:

• Bodily Injury Liability: Pays for medical expenses, lost wages, and legal fees if you are at fault in an accident that injures someone else.


• Property Damage Liability: Pays for repairs or replacement of another person's property that you damage in an accident, such as their vehicle, fence, or building.

Collision Coverage

Collision coverage pays for damage to your own vehicle resulting from a collision with another vehicle or object, regardless of fault. This coverage helps repair or replace your vehicle if it is damaged in an accident.

Comprehensive Coverage

Comprehensive coverage pays for damage to your vehicle caused by events other than collisions, such as:

• Theft
• Vandalism
• Fire
• Natural disasters (e.g., hurricanes, floods, earthquakes)
• Falling objects (e.g., tree branches, debris)
• Hitting an animal

Personal Injury Protection (PIP)

Personal Injury Protection (PIP) covers medical expenses, lost wages, and other related costs for you and your passengers, regardless of who is at fault in an accident. PIP is also known as "no-fault" coverage and is required in some states.

Uninsured/Underinsured Motorist Coverage

Uninsured/Underinsured Motorist Coverage provides protection if you are involved in an accident with a driver who has no insurance or insufficient insurance to cover the damages. It includes:

• Uninsured Motorist Bodily Injury (UMBI): Pays for your medical expenses, lost wages, and other damages if you are injured by an uninsured driver.


• Underinsured Motorist Bodily Injury (UIMBI): Covers the difference between your damages and the at-fault driver's insurance limits if their coverage is insufficient.


• Uninsured/Underinsured Motorist Property Damage (UMPD): Pays for damage to your vehicle if it is damaged by an uninsured or underinsured driver.

Medical Payments Coverage

Medical Payments Coverage, also known as MedPay, pays for medical expenses for you and your passengers after an accident, regardless of fault. This coverage is similar to PIP but with more limited benefits.

Rental Reimbursement Coverage

Rental Reimbursement Coverage pays for the cost of a rental car while your vehicle is being repaired due to a covered claim. This coverage helps you stay mobile while your vehicle is in the shop.

Roadside Assistance Coverage

Roadside Assistance Coverage provides help with roadside emergencies, such as:

• Towing
• Flat tire changes
• Jump-starts
• Lockout services
• Fuel delivery

Gap Insurance

Gap Insurance covers the difference between the actual cash value of your vehicle and the amount you owe on your auto loan if your vehicle is totaled or stolen. This coverage is particularly useful for those who have financed their vehicle and owe more than its current market value.