What Does Auto Insurance Cover?
Liability Coverage (Covers Others)
Liability insurance pays for injury or damage you cause to other people when you are at fault in an accident. This coverage is required by law in most states.
What it covers:
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Bodily Injury: Medical bills, pain & suffering, legal costs if you injure someone
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Property Damage: Damage to other vehicles, homes, fences, buildings, etc.
Important: Liability does NOT cover your own car.
Example:
If you hit another car and you are at fault, liability pays for their car and their injuries, not yours.
Physical Damage Coverage (Covers Your Car)
Physical Damage protects your own vehicle. It is usually optional, but required if you have a loan or lease.
Collision Coverage
Pays to repair or replace your car after:
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Car accidents (at fault or not)
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Hit-and-run
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Hitting an object (pole, wall, guardrail, etc.)
Comprehensive Coverage
Pays for damage NOT caused by collision:
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Theft
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Fire
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Vandalism
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Storm, flood, hail
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Falling objects
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Animal hit (deer, etc.)
Deductible applies (example: $500 or $1,000).
Example:
If your car is stolen or damaged by storm, Comprehensive pays.
If you crash into another car or object, Collision pays.