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Types of Auto Insurance Coverage

Illustration of a car in the road

In nearly every state, car insurance is required by law. State-by-state car insurance requirements vary, and deciding on the auto insurance coverage that offers the best protection for you and your family can be confusing. So, to clear up any misinformation, here’s a quick introduction to the basics of auto insurance coverage.

Full Coverage Auto Insurance

Sounds like this is all the coverage you need, right? Actually, the phrase “full coverage” can be a little misleading – full coverage doesn’t actually exist— it is a term often used to refer to the combination of state-required liability or no-fault insurance and collision and comprehensive coverage – but there are a variety of different types of auto insurance coverage options you can add beyond “full coverage” to increase your level of protection.

  • Liability 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

    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

    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

    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

    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.

  • Personal Injury Protection (PIP)

    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.

Affordable Auto Insurance Quotes

If you’re looking for affordable auto insurance, you’ve come to the right place. Freeway Insurance offers free auto insurance quotes that let you compare auto insurance policies to find the best coverage at the lowest price. Request a free auto insurance quote online, over the phone at 800-777-5620, or by visiting one of our local offices.

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