Liability, collision, comprehensive, and the rest, in plain terms. When you’re ready, a licensed agent can compare quotes for your drivers and vehicles, even with tickets or accidents on your record.
Quick answer: Car insurance pays for injuries and damage you cause to others (liability), and it can also pay to fix your own car (collision and comprehensive) and cover you when an uninsured driver hits you. Nearly every state requires liability coverage. Your price depends mostly on your driving record, how much you drive, your experience behind the wheel, your vehicle, and where it’s parked.
An auto policy is a bundle of separate coverages, each with its own limit or deductible. Some are required by law, some by your lender or lease, and some are optional. Knowing which is which is the simplest way to avoid paying for coverage you don’t need, or skipping coverage you do.
Each coverage has its own limit or deductible, and you choose how much of each to carry.
| Coverage | What It Pays For | How It's Set |
|---|---|---|
| Bodily injury liability | Injuries you cause to other people | Per-person and per-accident limits, like 100/300 |
| Property damage liability | Damage you cause to other cars and property | One limit per accident |
| Uninsured/underinsured motorist | Your injuries when the at-fault driver has little or no insurance | Often set to match your liability limits |
| Collision | Repairs to your car after a crash, no matter who's at fault | Up to the car's actual cash value, minus your deductible |
| Comprehensive | Theft, fire, vandalism, glass, and falling objects | Up to the car's actual cash value, minus your deductible |
| Medical payments | Medical bills for you and your passengers, regardless of fault | Common limits: $1k-$10k |
Which one fits depends on your car’s value, whether you have a loan or lease, and how much risk you want to carry yourself.
Covers injuries and damage you cause to others, but not your own car. Common for older cars that are paid off.
Liability plus collision and comprehensive. Usually required when you finance or lease, since the lender has a stake in the car.
Liability coverage for people who drive but don’t own a car, like frequent renters or drivers who regularly borrow one.
Your driving record, mileage, vehicle, and where the car is parked overnight all change your price, and each insurer weighs them differently. Find your city for local details.
It’s an informal term, not a policy type. It usually means liability plus collision and comprehensive, so your own car is covered along with the damage you cause to others. Lenders and leasing companies typically require it.
At least your state’s minimum liability limits, but many drivers carry more. If you own a home or have savings, higher liability limits help cover what a serious at-fault crash could cost beyond the minimum. An agent can walk through limits that reflect what you own.
Your driving record, annual mileage, years of driving experience, vehicle, where it’s parked, and the coverage and deductibles you choose. Many states also allow credit-based insurance scores, but California doesn’t allow credit history in auto pricing.
It pays for your injuries, and in some states damage to your car, when the driver who hits you has no insurance or too little to cover your costs. Insurers in many states must offer it, and you can usually turn it down only in writing.
Usually, when you rent for personal use in the U.S. or Canada. Your liability coverage generally extends to the rental, and collision and comprehensive extend if you carry them on your own car. Business rentals and rentals abroad work differently, so check before you travel.
Usually, yes. Most personal policies exclude driving while a rideshare or delivery app is on. The app company provides some coverage, but there are gaps, especially while you’re waiting for a request. A rideshare endorsement on your personal policy can fill them.
Get your complimentary quote, or call and a licensed agent will compare options for your drivers and vehicles, including drivers with tickets, accidents, or a DUI.
