What does auto insurance cover?  

Auto insurance typically covers a number of things for covered accidents and losses, including:

• Bodily Injury Liability:

If you injure or cause death to someone in a car accident, this coverage pays their medical, rehabilitation, and in-home care expenses. It also pays for any damages for which you are found legally liable including pain and suffering, lost wages, and funeral expenses.  

• Property Damage Liability: 

If you damage someone’s vehicle or other property in an accident and you are at fault, this coverage pays for it.

• Medical Payments:

This coverage pays medical bills for you, your passengers, and others who are covered by your policy, regardless of fault. 

• Uninsured Motorist (UM):

This coverage applies to you, your family and your passengers for bodily injury if you are hit by an at-fault uninsured motorist. This does not cover damage to property.

• Underinsured Motorist (UIM):

This coverage applies to you, your family and your passengers for bodily injury if you are hit by an at-fault motorist who does not have enough insurance to cover your expenses. This does not cover damage to property.

• Uninsured Motorist Property Damage Insurance (UMPD):

UMPD covers damage to your vehicle caused by an identified, at-fault, uninsured driver. This option is only offered if you choose not to purchase collision coverage. 

• Collision Coverage:

Collision helps pay for damage to your vehicle when it collides with another vehicle or object or if it overturns. Your lender may require this coverage if you have a loan or lease on your vehicle. Typically, a deductible applies for this coverage.

• Comprehensive Coverage (Other Than Collision): 

Comprehensive helps pay for damage to or the loss of your vehicle from causes other than collision (example: hail, vandalism, flood, fire and theft, etc.) Your lender may require this coverage if you have a loan or lease on your vehicle. Typically, a deductible applies for this coverage.

• Personal Injury Protection (PIP) Coverage:

PIP is a coverage in which the auto insurance company pays, within the specified limits, the medical, hospital and funeral expenses of the insured person, people in the insured vehicle and pedestrians struck by the insured vehicle. PIP is the basic coverage implemented in no-fault automobile insurance states.

Auto insurance typically does not cover:

• Vehicle maintenance

• Belongings inside your vehicle

• Commercial use of your vehicle 

You can customize your auto insurance to offer the level of protection you are seeking.  There are a variety of additional products you can add onto your standard policy, including: 

• Towing and Labor Coverage

• Reimburses you when your vehicle breaks down or is damaged and must be towed to a repair shop or to another location.

• Gap (Loan/Lease) Coverage

• Gap pays the difference between an insurance company’s payment for a totaled vehicle and the balance of a vehicle loan. This coverage is traditionally only available when an individual is purchasing a new vehicle.

• Rental Reimbursement/Transportation Expenses

• This is an optional policy benefit that pays the rental fee if you must rent a vehicle for a reasonable time while your vehicle is being repaired resulting from a covered loss.