Types of Auto Insurance Coverage

Liability coverage pays for injuries to the other party and damages to the other vehicle resulting from an accident in which you were found to be at fault. In addition, it can pay for covered damages and to defend you if a lawsuit is filed against you.

Collision coverage helps pay for damage to your vehicle (without regard to who caused an accident) if it is involved in a collision with another vehicle, if it hits an object, or your vehicle rolls over. If your car is financed or leased, this coverage is usually required by the lender.

Comprehensive coverage pays for damage to your vehicle that is not caused by a collision. Examples include theft, vandalism, hitting a deer or other animal, storms and certain natural disasters. If your car is stolen or is damaged by something other than collision, comprehensive coverage will help pay for the loss. The maximum amount you’d receive is the actual cash value of your vehicle minus the deductible you chose for this coverage.

Medical payments coverage helps pay for covered medical expenses up to policy limits for this coverage for anyone injured in your vehicle – regardless of who is at fault. It also covers you and your family members who might be involved in an accident as a pedestrian.

Uninsured/underinsured motorist coverage pays for the policyholder’s injuries and property damage caused by a hit-and-run driver or a motorist without liability insurance. It will also pay when medical bills and car repair bills are higher than the other driver’s liability coverage. Drivers who have filed an SR -22 insurance form typically only carry minimum liability limits.

Also referred to as no-fault insurance, is available in certain states and pays medical expenses, and in some cases, loss of income, essential services, accidental death, funeral expenses, and survivor benefits, regardless of who is at fault in an accident.