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Types of Car
Insurance Coverage
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Types of car insurance coverage are broken down, according to
purpose, but are generally combined into one policy. Coverage
descriptions are general information and not statements of contract
because policy provisions, endorsements, limits and requirements
vary by state. The most common coverage are:
- Liability
When an insured is legally responsible, liability coverage pays
for accidental bodily injury and property damages to others.
Bodily injury damages include medical expenses, pain and
suffering, lost wages, and other special damages. Property
damage includes damaged property and may include loss of use.
Liability coverage also pays defense and court costs. State laws
usually determine the minimum amounts, but higher amounts are
available.
- Personal Injury
Protection
Required in some states. Pays medical expenses for covered
persons, regardless of fault, for treatment due to an auto
accident. It may also pay for rehabilitation, lost earnings,
replacement of services (child care if a parent is disabled, for
example) and funeral expenses.
- Medical Payments
Available in most states. Pays medical and funeral expenses for
covered persons, regardless of fault, when those expenses are
related to an auto accident.
- Collision
Pays for damage to a covered vehicle caused by collision with
another object or by upset of the car. A deductible is required.
- Comprehensive
Pays for loss of or damage to a covered vehicle, except loss
caused by collision or upset. Examples include loss caused by
fire, wind, hail, flood, vandalism, theft or impact with an
animal. A deductible may apply.
- Uninsured Motorist
Pays damages when a covered person is injured in an auto
accident caused by a driver who does not have liability
insurance. In some states this coverage may also pay for
property damage.
- Underinsured Motorist
Pays damages when a covered person is injured in an auto
accident caused by another driver who has insufficient liability
insurance. Application of this coverage varies by state and
depends upon policy provisions.
- Rental Reimbursement
Pays expenses incurred for renting a car when your auto is
disabled due to an auto accident. Daily allowances or limits
vary by state or policy provisions.
- Emergency Road Service
Pays expenses incurred for having your auto towed as a result of
a breakdown. Towing limits vary by state or policy provisions.
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