Auto Insurance Coverage

Auto insurance policies generally help protect car owners from having to pay out of pocket for three broad types of situations:

  1. When they need to repair damages to their own cars
  2. When they have to pay for other people’s property repairs and hospital bills because they’re legally responsible for those damages
  3. When they need to cover the cost of their own injuries

But there isn’t one type of car insurance coverage that will protect the policyholder in all situations. Rather, a policy is made up of different types of coverage that all contribute to protecting the policyholder financially. Each coverage type has its own set of scenarios in which it will provide protection.

Typically, a single type of coverage will pay out for one of the following:

  • Other people’s damages that someone driving your car is legally responsible for (liability coverage)
  • Damages to your own car (comprehensive and collision coverage)
  • Crash-related injuries suffered by you or others covered under the policy (first-party medical benefits)
  • Other crash-related costs

But those are only the broad classifications of coverage, and they have many subtypes.

Which types of coverage and how much protection you need will depend on your budget, your car, and the laws in your state. Click on a link below to learn more about coverage types, common coverage discounts, and recommendations for choosing coverages.