What Types of Coverage Should You Have on Your Car

Insurance Policy?

It’s important to have car insurance. It helps you stay protected in case you’re in an accident or
something happens to your vehicle. There are many types of car insurance and it may seem difficult
to decide what types of auto insurance you need. The car insurance coverage types you are required
to get will depend on where you live. We can help you understand the different options available to
you and help you find the most affordable rates on the car insurance coverages that fit your situation
best.

1. Bodily Injury Liability

Bodily injury liability coverage can help protect you against financial loss if you hurt someone in an
accident. For example, if you accidentally run a red light and injure someone, this coverage can help
pay for their medical treatment. Most states require you to have bodily injury liability coverage.

2. Property Damage Liability

Property damage liability coverage pays for damage that your car causes to property you don’t own.
This includes fences, mailboxes and other cars. For example, if you take out a neighbor’s mailbox
while driving in a heavy rain storm, this liability insurance can help pay for the damages. Most states
require that you carry property damage liability coverage.

3. Collision Coverage
Collision insurance helps pay for damage done to your car if you hit another vehicle or object. For
example, if you back into a tree, this coverage can help pay for the damages to your car. Collision
insurance is not required by state laws, but your lender may require that you purchase this coverage.

4. Comprehensive Coverage
Comprehensive insurance pays to repair damage to your car from things like:

- Natural disasters
- Theft
- Vandalism
- Collision with an animal

For example, if you park your car under a tree and heavy snow takes down a branch that breaks your
windshield, comprehensive coverage, often called “other than collision coverage,” can help pay the
cost of repairs. Just like collision coverage, comprehensive insurance is not state required, but if you
finance or lease your car, your lender may require you to have it.

5. Uninsured/Underinsured Motorist Coverage

Uninsured/underinsured motorist coverage helps cover damages if you are hit by a driver who
doesn’t have car insurance or doesn’t have enough car insurance to cover the costs of damages and
injuries. This insurance is split into three coverages:

 Uninsured motorist bodily injury coverage helps pay bodily injury costs for you and your
passengers if you’re hit by an uninsured driver or a hit-and-run driver.

 Uninsured motorist property damage coverage helps pay for damage to your car if it's hit by
an uninsured driver or a hit-and-run driver.
  Underinsured motorist coverage helps pay for bodily injury if you’re in an accident with a
driver that doesn’t have enough insurance.

 Uninsured/underinsured motorist coverage is not required in all states. It’s important to

check your state to see what the minimum requirements are for uninsured/underinsured
motorist coverage where you live.

6. Medical Payments Coverage

Medical payments coverage helps pay for medical expenses and rehabilitation. This optional
coverage may not be available in all states. However, if you have medical payments coverage and get
into a car accident in another state, your coverage applies no matter where your accident happens.

7. Personal Injury Protection (PIP)

Personal injury protection (PIP) insurance, also known as no-fault insurance, helps pay for losses
related to injuries from a car accident, no matter who was at fault. In addition to medical bills,
personal injury protection (PIP) can also help cover funeral costs or lost wages. Keep in mind this is
not available in all states, but is required in certain states.

Additional Types of Auto Insurance Coverage You May Need:

Full Glass Coverage

Full auto glass insurance can help pay for your car’s headlights, mirrors and window repairs with no
deductible. For example, let’s say a thief breaks in by smashing your car window. The estimate to
repair it is $600. If you only have comprehensive auto insurance, you’ll pay the deductible before
your policy kicks in to repair your windshield. With full glass coverage, the cost of repairing the
window will be covered in full with no out-of-pocket costs to you. Keep in mind that this type of
insurance can vary by state and isn’t always available.

Car Towing Coverage

Car towing coverage helps pay towing and labor charges associated with getting your vehicle running
again in the event of a breakdown. For example, if your car battery dies on the interstate, this
coverage can help pay for the costs of having your car jump-started. Towing coverage is optional and
your state will not require you to have this coverage.

Personal Umbrella Insurance

Personal umbrella insurance goes beyond accidents and damages. It can help if a covered loss
exceeds the liability coverage limits of your home or auto policy. For example, if someone sues you
and the damages are more than the liability limit on your primary coverage, umbrella insurance can
help pay the excess costs. This coverage is optional and not required by law in any state, but you may
want to consider adding it to your current coverage for extra protection.

Gap Insurance
Your gap insurance can help pay the difference between your car’s actual cash value and the amount
you owe on your car loan if it’s stolen or totaled. Most people buy this coverage for leased or
financed vehicles. This type of coverage is not mandated by state law, but if you have a car loan, gap
insurance may be a coverage requirement from your lender.

Rental Car Reimbursement Coverage

Rental car reimbursement coverage, also known as transportation expense coverage, helps pay for a
rental car in the event of a covered comprehensive or collision loss. For example, if you slide off a
wet road and crash into a tree while driving, this coverage could help pay for the charges to rent a
replacement vehicle while your car gets repaired. This coverage is not required by law in any state,
but may be an optional coverage that would be helpful if you were in a car accident and couldn’t use
your car temporarily.

Rental Car Insurance

If you’re renting a car for leisure, you’ll need to have liability coverage. Rental companies usually
offer rental car insurance in the form of a collision damage waiver or loss damage waiver. Signing
these will keep you from being held financially responsible if there’s damage to the car or someone
breaks into it. However, your existing car insurance may also cover damage to your rental car if
you’re in a car accident. If you plan to rent a car, call your insurance company beforehand to be sure
you’re covered.