What Does Car Insurance Cover?

Car insurance is essential for protecting yourself financially against the costs of accidents, theft, and other unforeseen incidents involving your vehicle. Most policies include a variety of coverages designed to offer peace of mind on the road.

1. Liability Coverage

This mandatory coverage pays for damages or injuries you cause to other people or their property in an accident. It typically includes:

• Bodily Injury Liability: Covers medical expenses, lost wages, and legal fees if you injure someone.
• Property Damage Liability: Covers repairs or replacement of another person's property damaged in an accident.

2. Collision Coverage

Collision coverage pays to repair or replace your car if it's damaged in a collision with another vehicle or object, regardless of who is at fault.

3. Comprehensive Coverage

This protects your vehicle against damage from non-collision events such as theft, vandalism, fire, natural disasters, and hitting an animal.

4. Personal Injury Protection (PIP) or Medical Payments Coverage

These cover medical expenses for you and your passengers if injured in an accident, regardless of fault. PIP may also cover lost wages and other related costs.

5. Uninsured and Underinsured Motorist Coverage

This coverage protects you if you're involved in an accident caused by a driver who has no insurance or insufficient coverage to pay for damages.

Additional Coverage Options

Depending on your insurer, you may also add extras like roadside assistance, rental car reimbursement, and gap insurance.

Final Thoughts

Understanding what your car insurance policy covers helps you choose the right protection and avoid surprises during claims. Always review your policy documents carefully and discuss with your insurance agent to ensure adequate coverage tailored to your needs.