What Are the Components of Your Auto Insurance Policy?

You see commercials every day about getting the “cheapest” or “fastest” insurance for your car, truck, or vehicle. But what these commercials don’t tell you –

– is what’s actually covered. Let’s break down the coverage options so you know exactly what types of protection you may – or may not – be getting for your vehicle. 


Auto Liability Insurance coverage is required by law in most states and pays for bodily injury and property damage that you’re responsible for in a covered accident. It includes both third-party liability (bodily injury to other people and their property) and first-party liability (injury or damage to your own car). This coverage can help pay medical bills, legal costs, and court judgments up to the limits of your policy. It may also cover repairs when you’re at fault in an accident. 


Collision coverage pays for any damage caused to your car when you hit an object or if someone else hits your car with theirs. This includes accidents involving another vehicle or object such as a tree, fence, wall, etc. Collision coverage will typically pay for the repair or replacement of your vehicle up to the market value of the car minus any deductible amount specified on the policy (the amount you pay before insurance provides coverage). 


Comprehensive coverage pays for damage done to your car from occurrences other than collisions with other vehicles or objects. This includes theft of car parts, vandalism, hail damage, flood damage, and fire damage. Comprehensive coverage may also reimburse you if your car is stolen. Like collision coverage, comprehensive also pays out up to the market value of the car minus any deductible stated on the policy.   

Medical Payments/Personal Injury Protection (PIP)

Medical Payments Coverage, sometimes referred to as PIP, will cover you or your passengers’ immediate medical bills due to an accident, regardless of who is at fault. Liability auto coverage only covers damages done to others, and your personal health insurance may have a high deductible, leaving you to pay for an ambulance, X-Rays, procedures or treatments out of pocket. Medical Payments Coverage can help bridge that gap.             

Uninsured/Underinsured Motorist

Uninsured (UM) and underinsured motorist (UIM) coverages protect you if someone without auto insurance injures you in an accident or hits your car with theirs while they don’t have enough insurance to cover all damages caused by their negligence. UM/UIM coverages typically provide financial compensation for medical expenses up to policy limits as well as repair costs if applicable. 

Those “cheap and fast” options may indeed be cheaper and faster – but will they actually cover you?

Often, the premium you pay is reduced by removing coverages, increasing deductibles, or lowering the limits of the policy. Let us help you choose a plan that actually covers what you need and fits your budget. 

Planning properly for the protection of you, your family, and your vehicle is worth it!