Auto Insurance Coverage Information

Auto Insurance Coverage


To make an informed buying decision on your auto insurance and find cheap car insurance, you need to understand car insurance coverage. If you are not familiar with car insurance coverage’s or would like to refresh you knowledge, this article will help you better understand car insurance coverage. Each state has different limits and laws. Check with your individual State Department of Insurance if you need state specific information.


Liability Car Insurance

Liability car insurance pays for the property damage or physical injury to others caused by you. State minimum car insurance coverage is the cheapest car insurance and is typically not enough coverage and varies by state. Coverage limits vary by company. When getting insurance quotes, consider how much you have to lose in a lawsuit and how much insurance coverage you can afford and be sure to purchase an adequate amount of liability coverage to limit your exposure in the event of an accident.

Collision Coverage

Collision covers the repair costs to fix your vehicle after an at fault accident. The deductible is the portion you are responsible for. Typical deductibles are $250, $500 and $1000. A higher deductible will result in a lower car insurance premium, and a lower deductible will result in a higher car insurance premium.

Comprehensive Coverage also known as other than collision (OTC)

Comprehensive coverage covers damage to your car other than accidents including damage from theft, fire, vandalism, flooding, and hail. Deductible still applies.

Rental and Towing Coverage

If you are carrying comprehensive and collision coverage, some companies offer rental and towing coverage. In the event of an accident, rental will pay for a rental car up to the limits you purchase. Different companies offer different amounts and typically range from $20 per day to around $40 per day and max out at 30 days. Towing coverage cover’s vehicle disablement. Towing coverage limits usually range from $50 up to $150 per disablement.


Personal Injury Protection

Personal Injury Protection is like a small medical policy that covers everyone in the vehicle in the event of an accident and can cover additional expenses such as lost wages. PIP coverage is usually sold in increments of $2500, $5000, $10000.

Medical Coverage

Is like a small medical policy that covers medical expenses to everyone in the vehicle in the event of an accident, no additional expenses are covered. PIP is usually preferred over Medical. You cannot have PIP and Medical coverage on the same policy. Medical coverage is usually sold in increments of $2500, $5000, $10,000.


Uninsured or Underinsured Motorist Coverage

Uninsured or underinsured motorist coverage pays for costs related to injuries to you or your family members and guests riding in your car and/or property damage caused by an uninsured or underinsured driver in an accident. Limits offered are the same as the liability coverage on your policy. Most companies will allow you to purchase less, but you cannot purchase higher limits than what you carry on your liability limits. Make sure you carry enough coverage; this is the coverage that protects you, your family and friends in the event of an accident with uninsured or underinsured. A deductible of $250 applies.


Some insurance companies offer additional coverage’s such as roadside assistance, accident forgiveness and new car replacement are just a few. These are additional coverage’s and will increase your premiums. Use the coverage tips above to help make a good decision when you purchase you next auto insurance policy.

The internet has a lot of good websites for shopping insurance quotes and finding cheaper car insurance tips.