A standard auto insurance policy is built from several coverage types, each protecting against different risks. Most states require at least liability coverage; the rest are optional or recommended depending on your situation.
Liability coverage (almost always required)
Covers damages and injuries you cause to others in an at-fault accident.
- Bodily injury liability: pays medical bills and lost wages for the other party.
- Property damage liability: pays to repair the other driver's car or property.
Liability does NOT cover your own injuries or vehicle.
Collision
Pays to repair or replace your vehicle after a crash with another car or object, regardless of fault. Usually required if you have a car loan or lease.
Comprehensive
Pays for damage to your vehicle from non-collision events: theft, vandalism, hail, falling objects, fire, flooding, or hitting an animal.
Uninsured / underinsured motorist (UM/UIM)
Covers your injuries and (sometimes) vehicle damage if you're hit by a driver with no insurance or insufficient coverage.
Personal Injury Protection (PIP) / Medical Payments
Pays your medical expenses (and sometimes lost wages) after an accident regardless of who was at fault. Required in "no-fault" states.
Putting it together
A typical "full coverage" policy includes liability + collision + comprehensive + UM/UIM. State-minimum-only policies skip collision and comprehensive, which is risky if your car has significant value.