Car insurance typically covers several key areas to protect you financially in the event of an accident or other vehicle-related incidents:
- Liability Coverage: This is required in most states and covers injuries and property damage you cause to others in an accident. It pays for the other party’s medical bills and repair costs for their vehicle or property
- Collision Coverage: Pays for damage to your own vehicle resulting from a collision with another car, object (like a tree or pole), or if your car flips over. It usually has a deductible and covers repairs regardless of fault
- Comprehensive Coverage: Covers damage to your vehicle from non-collision events such as theft, vandalism, fire, natural disasters (hail, flood), falling objects, or hitting animals. This also often has a deductible
- Personal Injury Protection (PIP) or Medical Payments Coverage: Pays for medical expenses for you and your passengers after an accident, and may also cover lost wages and funeral costs depending on the policy and state laws
- Uninsured/Underinsured Motorist Coverage: Protects you if you’re hit by a driver who has no insurance or insufficient insurance, including hit-and-run incidents. It can cover medical costs and vehicle damage
- Property Damage Liability: Covers damage you cause to someone else’s property, such as their car, fences, or buildings
Car insurance generally does not cover normal wear and tear on your vehicle or damage caused by drivers not listed on your policy
. In summary, car insurance covers liability for injuries and property damage to others, damage to your own vehicle from collisions and other hazards, medical costs for injuries, and protection against uninsured drivers. The exact coverages and limits depend on your policy and state requirements
