Choosing the right amount of auto insurance coverage can be confusing. Do you understand how collision, comprehensive, bodily injury and property damage coverages all work together? Or even what they are? If you don't, here's a quick lesson:
Bodily Injury Liability (Injury to Others). If you hurt someone with your vehicle, this part pays for it and the legal defense if you get sued.
Property Damage Liability (Damage to Others' Property). If you're at fault, this part pays to repair other people's property: cars, houses, fences, etc. And let's face it, if you get into an accident with a house, it likely wasn't the other guy's fault.
Uninsured Motorist Bodily Injury (Injury to You). Unfortunately, just 'cause someone is driving doesn't mean they have insurance. This part pays for injuries you or your passengers (depends on the state) get from an accident with that scofflaw.
Underinsured Motorist Bodily Injury (Injury to You). Okay, so this guy has insurance. Just not enough. This coverage works to help you get money that helps pay for treatment. State variations apply. Uninsured Motorist Property Damage (Damage to Your Stuff). That guy who hit you and had no insurance to pay for your injuries isn't going to be able to pay to fix your car, either. This coverage helps take care of that.
Underinsured Motorist Property Damage (Damage to Your Stuff). If the driver who just broadsided you has insurance, but not enough to pay for your brand-new, fully-loaded minivan (those things are expensive), this covers the difference.
Personal Injury Protection (Injury to You). If you've been injured in an accident, you need to focus on getting better, not worrying if your treatment will be covered. This helps take care of it for you and your family, no matter who was at fault.
Medical Payments (Injury to You). If you or your passengers have medical or funeral expenses because of an accident, this coverage applies to them.
Comprehensive (Covers Your Vehicle). A lot can happen to a car even when it's sitting still: fire, vandalism, glass breakage, you name it. If the damage is the result of anything that Collision does not cover, Comprehensive usually does.
Collision (Covers Your Vehicle). You probably won't like the way your vehicle looks after an accident. This part works to pay to get it looking right again, no matter whose fault it was.
Rental Reimbursement (For You). If your vehicle is in the shop for any covered damage, you get to sport a rental. Depending on the amount of coverage you select, you may not even have to pay for it.
Towing and Labor (Your Vehicle). This is very similar to the roadside assistance you'd get from well-known auto clubs, but for much, much less.
Loan/Lease Gap Coverage (Your Vehicle). Did you owe more money on your loan or lease than the vehicle was worth before it got totaled? This pays the difference.
Contact us
Our Risk Coaches are licensed insurance professionals who are trained to look at coverage from your perspective. They’re glad to help you navigate the often-perplexing world of insurance coverage. Contact your local Risk Coach™ professional, or call us at 800.342.5342, Monday through Friday, from 8:00 a.m. to 8:00 p.m. ET.
