Car Insurance Basics
Insurance Coverage in plain English
For: At-fault accidents
Bodily Injury and Property Damage coverage are the limits on your policy that protects you in case of an accident. This pays for any medical bills incurred for the other driver and their passengers, up to your policy limits. It also pays for damage to the other person's vehicle or property, up to your policy limits.
For: Not-at-fault medical
Uninsured Bodily Injury coverage is used when you get hit by an uninsured driver or a driver who doesn't have enough insurance. Your insurance will pay for any damages you have involving medical bills and even lost wages.
For: Medical care after an accident
Medical Payments coverage protects you for any medical costs you and your passengers receive, up to your policy limits. This is only used for you and you passengers and not the other party involved. Normal limits are enough to help with large health insurance deductibles, etc.
For: Repairs to your vehicle
Collision Coverage covers your vehicle if you hit, or get hit by another vehicle. You pay your chosen deductible to the repair shop after repairs are made, and your insurance company pays the rest.
For: Other vehicle repairs
Comprehensive coverage also known as "acts of God" coverage, protects your car when it is damaged by vandalism, glass damage, hail damage, flood, hit a dog, hit a deer, and other damages. Just like with collision, the insurance company will pay for all repairs after you have paid your set deducible.
For: Vehicle Breakdowns
Roadside coverage gives you the peace of mind that you have someone to call 24/7, if your car breaks down due to mechanical issues, a flat tire, lock-out and even a dead battery. Using this service does not require a deductible.
For: Renting a car after accident
Rental reimbursement coverage protects you when your car is being repaired due to a Collision or Comprehensive claim. This coverage will pay for a rental car while your car is in the shop, up to your policy limits.
For: Paying off car loans
Loan Payoff coverage, also known as gap insurance, pays for the actual amount you owe your lender in the event of a total loss. Normally, this is only available on vehicles two years old or newer.