When you read an auto insurance quote, you are really looking at several coverages bundled together. Some protect other people when you cause an accident. Some protect your own car. Others pay for injuries or fill gaps when the other driver has no insurance. Knowing which is which makes every quote easier to compare.
Liability coverage
Liability coverage pays for damage you cause to other people and their property. It is required in almost every state and is the foundation of any policy. It has two parts:
- Bodily injury liability pays medical bills, lost wages and legal costs for people injured in a crash you cause.
- Property damage liability pays to repair or replace the other car, a fence, a building or anything else you damage.
Liability does not pay for your own car or your own injuries. It also only pays up to your limits, and anything above them can become your responsibility. That is why many drivers choose limits well above the state minimum. Our Coverage Levels Guide explains how to read limits such as 100/300/100.
Collision coverage
Collision pays to repair or replace your own car after it hits another vehicle or an object, or rolls over, no matter who is at fault. You choose a deductible, the amount you pay before the insurer pays the rest. If you have a loan or a lease, the lender usually requires collision.
Comprehensive coverage
Comprehensive pays for damage to your car from events other than a collision: theft, vandalism, fire, falling objects, hail, flood and hitting an animal. It also has a deductible, often lower than the collision deductible. Glass damage is usually handled under comprehensive. For a side-by-side look at the two, read Comprehensive vs. Collision.
"Full coverage" is not a coverage. The phrase usually means liability plus collision plus comprehensive. It does not mean everything is covered, so always check the actual list of coverages and limits on the quote.
Uninsured and underinsured motorist coverage
Uninsured motorist (UM) coverage pays for your injuries, and in some states your car, when a driver with no insurance hits you. Underinsured motorist (UIM) coverage steps in when the at-fault driver's limits are too low to cover your costs. Some states require it; others let you decline it in writing. Because a meaningful share of drivers are uninsured, many people keep it even where it is optional.
Medical payments and personal injury protection
These coverages pay medical costs for you and your passengers regardless of fault.
- Medical payments (MedPay) covers medical and funeral costs up to a set amount.
- Personal injury protection (PIP) goes further and can also pay lost wages and essential services. It is required in no-fault states.
Common add-ons
| Add-on | What it pays for | Worth a look if |
|---|---|---|
| Gap coverage | The difference between what you owe on a loan or lease and the car's value after a total loss | You owe more than the car is worth |
| Rental reimbursement | A rental car while yours is repaired after a covered claim | You have no second car |
| Roadside assistance | Towing, jump-starts, lockouts and flat tires | You do not already have it through a club or your car |
| New car replacement | A new car of the same model after a total loss in the first years | Your car is very new |
Which coverages do you need?
At a minimum you need the liability coverage your state requires, plus any coverage your lender requires. Beyond that, the right mix depends on what your car is worth, how much you could afford to pay after an accident and what you already have elsewhere. The Coverage Needs Worksheet walks through those questions, and the Coverage Calculator estimates sensible limits from your own numbers.
When you compare offers, make sure each quote includes the same coverages at the same limits and deductibles. Our Compare Quotes tool lines them up for you.