Understanding the different car insurance coverage types helps you build a policy that fits your needs and budget. Whether you’re buying a new car or comparing quotes, this guide breaks down the major options — what they cover, when you need them, and how they work together.
Liability Coverage
Liability insurance is required in nearly every state. It covers damage or injuries you cause to others in an at-fault accident — but not your own vehicle.
- Bodily Injury: Medical expenses and legal costs for injured parties
- Property Damage: Repairs to someone else’s vehicle or property
→ Learn about Liability Coverage
Collision Coverage
Collision insurance pays to repair or replace your car after an accident — whether you hit another vehicle, a tree, or flip your car in a one-car crash.
→ Learn about Collision Coverage
Comprehensive Coverage
Comprehensive insurance covers non-crash damage such as theft, fire, floods, hail, animal strikes, or falling objects.
- Theft or vandalism
- Weather damage (hail, hurricane, flooding)
- Animal collisions or broken windows
- Fire, explosion, or falling objects
→ Learn about Comprehensive Coverage
Uninsured/Underinsured Motorist Coverage (UM/UIM)
This coverage protects you when the other driver doesn’t have enough insurance — or none at all. It’s required in some states and optional in others.
Personal Injury Protection (PIP)
Personal Injury Protection pays for medical care, lost wages, and rehab costs no matter who caused the crash. Required in no-fault states.
- Hospital bills and treatment
- Rehabilitation and recovery
- Lost income
- Funeral expenses (in some cases)
Medical Payments Coverage (MedPay)
MedPay helps pay for medical bills after a crash, regardless of who’s at fault. It’s a useful backup if you don’t have health insurance or want fast coverage for passengers.
Rental Reimbursement Coverage
Rental reimbursement pays for a rental car while your vehicle is being repaired after a covered accident. Most policies include a daily and total dollar limit.
→ Learn about Rental Car Coverage
Gap Insurance
Gap insurance pays the difference between your car’s actual cash value and the amount you still owe on your loan or lease — if your vehicle is totaled or stolen.
Roadside Assistance
Roadside assistance covers towing, jump-starts, lockouts, flat tires, and other breakdowns. Some policies even include trip interruption coverage.
→ Learn about Roadside Assistance
Full Coverage Car Insurance
Full coverage is not a single policy, but a combination of liability, collision, and comprehensive insurance. It’s often required by lenders and smart for newer vehicles.
Other Optional Add-Ons
Depending on your insurer, you may also consider these extra protections:
- Custom Equipment Coverage
- New Car Replacement
- Rideshare Insurance
- Accident Forgiveness
- Vanishing Deductible Programs
Which Coverage Is Right for You?
The right coverage depends on your state’s laws, the value of your car, your financial situation, and how much risk you’re willing to take.
- Do you lease or finance? → You may need gap or full coverage
- Live in a no-fault state? → You might need PIP
- Drive often or in risky areas? → Consider UM/UIM and roadside assistance
- Own your car outright? → Liability-only may be enough, depending on the car’s value
Use the links above to compare coverage types and create a policy that fits your lifestyle, budget, and risk tolerance.