Auto Insurance Benefits

In exchange for a premium, an insurer agrees to pay for certain losses up to your policy’s limits.

Some of these benefits include bodily injury and property damage liability, collision coverage and comprehensive coverage. You can customize a policy to suit your needs and budget.

Liability Coverage

Liability coverage is the insurance you get to cover the cost of injuries or damage to other people’s property if you cause an accident. This is required in most states and can be a great base to build your policy around.

Some states also require you to carry medical payments and personal injury protection, which reimburses you for your medical bills or the injuries of your passengers if you are in an accident. It will also pay for lost wages and household services you can no longer perform due to an accident.

Collision Coverage

Collision coverage helps pay for repairs or replacement of your vehicle after it is damaged in an accident. It covers damage caused by hitting another car or an object, like a guardrail.

Often, lenders require that you purchase collision insurance when you finance or lease your car. This protects them from losses if you don’t pay off your car loan or lease.

Comprehensive Coverage

Comprehensive coverage helps cover damages to your car that occur from non-collision events. This includes hail damage, falling objects, vandalism and theft.

It can also reimburse you for damage caused by a natural disaster, like a hurricane or tornado.

The amount of comprehensive insurance you need depends on a few factors, such as your vehicle’s value and the deductible you choose. A higher deductible usually means lower rates, while a lower one often means a higher premium.

Uninsured Motorist Coverage

Uninsured motorist coverage is designed to protect you against financial losses from an accident caused by another driver who either doesn’t have insurance or doesn’t have enough of it.

In some states, drivers must buy this coverage as part of their car insurance policy.

This protection may cover medical costs incurred from an accident that’s not your fault and damages to property. Oftentimes, this coverage is paired with underinsured motorist coverage.

Medical Payments Coverage

MedPay is an optional add-on to your auto insurance policy that can pay medical expenses for you and any passengers in the vehicle. It pays for any injuries you or your passengers may suffer in a car accident, regardless of who caused the collision.

Some states require this coverage and others may offer it as an optional policy. If you are unsure whether it’s right for your situation, talk to a trusted agent about your options.

Personal Injury Protection Coverage

Personal injury protection (PIP) coverage helps cover your medical expenses and lost income, as well as funeral costs after a car accident. It’s a mandatory part of New York’s no-fault insurance law and is required in 12 states.

It also covers replacement services that you can no longer provide to yourself or your family because of your accident-related injuries, such as child care and house cleaning. It can help you cover these costs more quickly than if you had to file a liability claim against an at-fault party.

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