Bodily Injury Liability

Bodily injury liability coverage can shelter you from financial responsibility when you are at fault in an accident that results in physical injury to your passengers or any other person―whether it’s minor bumps and bruises or injury-related death.

When you shop for an insurance policy, bodily injury liability coverage typically falls under the general umbrella of liability coverage. "Liability" means "responsibility," and it refers to two different types of financial responsibility in an accident: damage done to people (bodily injury) and damage done to the vehicles or other property (property damage). (more)

Collision Coverage

There are two types of coverage under the physical damage coverage available with car insurance policies: comprehensive coverage and collision coverage. These two kinds of coverage are similar in that they both deal with damage and loss related to your vehicle.

Collision coverage handles damage and loss related to your vehicle from collisions with other vehicles, stationary objects, road obstructions etc. It is one of two types that fall under the category of physical damage coverage. (more)

Comprehensive Coverage

Comprehensive coverage covers nearly every type of loss that you might incur as the result of something other than an auto accident―damages due to flood, fire, theft, vandalism, you name it. It falls the umbrella of physical damage insurance.
Drivers usually pair comprehensive with other types of coverage that fall under the umbrella of physical damage insurance. The most common is collision insurance, which protects your vehicle in the case of an accident. (more)

Federal Motor Carrier Insurance

Interstate or inter-country motor carriers and those carrying hazardous materials must abide by rules set forth by the Federal Motor Carrier Safety Administration (FMCSA). The FMCSA requires higher insurance premiums for these situations to prove financial responsibility.

Driving without proof of insurance could trigger an investigation and inspection of all of the company’s vehicles and record keeping by the federal government. In addition, you or your motor carrier could be subject to state and federal fines and loss of your commercial driver’s license. (more)

Fire and Theft Coverage

Fire and theft coverage is usually part of a comprehensive auto insurance policy. Aside from the obvious fire and theft related expenses, this type of insurance may also cover damages caused by lightening, explosions, earthquakes, hail, etc.
If you want maximum protection for your vehicle, purchasing fire and theft coverage as part of a comprehensive auto insurance policy is a smart move. This type of auto insurance may also be required if you used a loan to purchase your vehicle. (more)

Gap Insurance

Gap insurance essentially is a financial bridge between what you owe on a car loan and what the vehicle is estimated to be worth. Sometimes known as loan/lease or loan/lease payoff insurance, this coverage can be a necessity for those who buy or lease vehicles.

Whether you need―or are required to have―this guaranteed auto protection (GAP) depends on a few factors. (more)

Liability Coverage

All states require you to have some sort of financial responsibility coverage in order to drive a vehicle within their boundaries. For some that means obtaining auto liability. This only covers bodily injury and property damage costs caused to others, not costs of your own.

Your liability insurance generally applies to vehicles you own, as well as vehicles you drive with the owner's permission. (more)

Pay-Per-Mile Coverage

Also known as pay-as-you-drive (PAYD) or usage-based insurance, this form of auto liability protection determines part or most of your premiums based on your driving habits.

In its simplest form, it only takes into account the number of miles you drive. In its most complex form, it assesses how much, when, where, and even how you drive. (more)

Personal Injury Protection Coverage

Personal Injury Protection (PIP) is an additional form of car insurance that provides immediate and subsequent health care costs in the event of an accident, regardless of fault. PIP is commonly referred to as "no-fault coverage.”

PIP on average, covers 80% of your medical related expenses (contingent on your state's coverage limits). And, because of its no-fault structure, assures you of quick payments. (more)

Physical Damage Coverage

Physical damage coverage protects your vehicle from every potential hazard on this planet―everything from collisions and vandalism to toppling trees and wayward wildlife. What falls under this umbrella includes collision and comprehensive coverage.

If you lease your vehicle or carry a loan, physical damage coverage, in most cases, is mandatory. Otherwise, it's optional if you own your car. If you have that option it's highly recommended to carry physical damage coverage if you own a vehicle with high Blue Book value. (more)

Property Damage Liability

Property damage liability insurance covers you in the event that your car damages someone else's property. Although it’s not a requirement in most states, property damage liability could save you from paying out of pocket or from getting sued for damages caused by your vehicle.

Property damage liability insurance takes effect when your vehicle is involved in an accident and found at least partially at fault for causing damage to another person’s property. It will not cover your own property. (more)

Rental Car Insurance

Rental car insurance offers financial coverage for those who rent a car. It can be a valuable safeguard for travelers, especially for those who aren't already protected by their personal auto policy or credit card issuer.

This insurance offers financial coverage for those who rent a car; it differs from rental car reimbursement insurance, which pays for the use of a rental car while your vehicle is being repaired following an accident. (more)

Underinsured Motorist Coverage

In the event of an accident, underinsured motorist coverage (UIM) protects you from drivers who carry just enough liability insurance to meet the state's legal requirements but not enough to compensate for your damages.

Coverage comes into play when the negligent driver's insurance can't cover your costs. For example, if the at-fault driver only has $25,000 in bodily injury coverage, and you've accrued $43,000 in hospital costs, your underinsured motorist policy will pick up the $18,000 difference―provided, of course, it does not exceed predetermined limits. (more)

Uninsured Motorist Coverage

Uninsured motorist coverage (UM) protects you from damages sustained by a driver who doesn’t have liability coverage. Because there's no national mandate for UM (some states require it, others offer it as an option), limits are dependent upon individual state laws.

You should consider it if your current health insurance policy provides only minimum coverage. Also, take into account state statistics. If you reside in a state with a high percentage of uninsured drivers (some states, according to the Insurance Research Council, average around 25%), you may want to consider the added protection. (more)