What Does Car Insurance Cover?

What Car Insurance Covers

The most common types of car insurance include liability, collision, comprehensive, uninsured motorist (UM)/underinsured motorist (UIM), medical payments (MedPay) and personal injury protection (PIP) insurance. These are some of the situations when you might use them.

When You Hurt Someone Else

If you cause an accident and hurt someone else, your car insurance's bodily injury liability coverage may help pay for that person's medical bills. It can also cover related costs, such as your legal fees if you're sued and the other person's claims related to pain and suffering or lost wages.

Many states require you to have a minimum amount of coverage, such as $25,000 per person and $50,000 per accident. However, if you live in a no-fault state, the other driver may need to use their own PIP coverage before your liability insurance kicks in.

Learn more: How Long Does an Accident Stay on Your Insurance?

When You Damage Someone Else's Property

Property damage liability coverage is what you'll use if you cause an accident and damage someone else's property. These claims could happen after an auto accident or if you damage a building or fence. The minimum property damage liability coverage also varies by state.

Learn more: Liability vs. Full Coverage Car Insurance: Which Is Better?

Damage to Your Vehicle From a Collision

Collision insurance can help pay to repair or replace your vehicle after you get into a collision with another vehicle or an object, like a tree. It may also cover you if your vehicle rolls over or if you hit a pothole and need a new tire or other repairs. You don't have to purchase collision insurance unless you have a lease or loan and your lender requires it.

Damage or Theft of Your Vehicle

Comprehensive insurance covers claims related to your vehicle and that are outside of your control. For example, comprehensive insurance covers you if your car is stolen, if you're driving and a pebble cracks your windshield or if a deer jumps in front of you and causes an accident.

Collision coverage can also apply when a fire or other natural disaster damages your vehicle, even if you're not driving it at the time. Similar to collision coverage, comprehensive insurance is generally optional unless your lender requires it.

Learn more: Comprehensive vs. Collision Insurance: What's the Difference?

Your Bills When the Other Person Doesn't Have Enough Coverage

When someone else causes an accident, their property damage liability coverage may be responsible for paying to repair or replace your vehicle. And depending on the state, their personal injury liability coverage may pay for part or all of your medical bills. However, if they don't have insurance or have low limits, you might have to try to sue and collect money from the individual rather than their insurance company.

Uninsured motorist (UM) and underinsured motorist (UIM) insurance can cover you in these situations. Some states require you to carry one or both types of coverage—and some only require UM insurance for bodily injuries.

Your Medical Bills or Lost Wages

PIP insurance covers medical expenses, lost income, funeral costs and help with routine tasks (such as child care) after a covered incident. It could apply when you're in a car accident or if you're walking or riding a bike and get hit by a car.

In no-fault states, you have to purchase this coverage and file a claim with your insurance company regardless of who caused the accident. In some cases, you may also be able to sue the other driver for excess claims if they caused the accident. You can also sue or file a claim with their insurance company for non-medical claims, such as damage to your vehicle or property.

You may also have the choice of purchasing PIP coverage and opting in to no-fault coverage if you live in a "choice" no-fault state. Even some at-fault states allow insurance companies to offer PIPs, which could help you cover health insurance deductibles and copays.

MedPay insurance is almost always optional, and it can similarly help you pay for medical bills that your health insurance doesn't cover, such as deductibles and dental procedures. However, unlike PIP, MedPay doesn't cover lost wages.

Learn more: What Is Full Tort vs. Limited Tort in Car Insurance?

Reasons to Consider Additional Forms of Car Insurance Coverage

There are also many optional types of insurance and add-ons that you may want to purchase depending on your financial situation and how you use your vehicle.

Remaining Loan and Lease Amounts

If you lease or have a loan on your vehicle, guaranteed asset protection (gap) insurance can cover the difference between your balance and the car's current value if it's totaled.

A Rental While Your Car Is in the Shop

Rental car reimbursement coverage pays for a rental car if your vehicle is in the shop due to a covered loss.

Your Gig Work in the Vehicle

Rideshare insurance can keep you covered while you're using your vehicle for work, such as driving for Uber or Doordash. Some gig companies offer drivers coverage, but it might not apply—and your standard coverage might not either—if you're waiting to pick up your next ride or task.

Your Classic Car or Truck

Classic car insurance can help you keep a modified, vintage, classic or other exotic car covered when a regular policy's actual cash value coverage doesn't adequately account for the vehicle's true value.

Help With Minor Repairs

A roadside assistance add-on could be helpful if you have a flat tire, dead battery, lock your keys in the car or need a tow.

What Car Insurance Doesn't Cover

Car insurance policies cover a lot of situations, but they don't cover everything. Some common exclusions include:

• Intentional damage and fraud: Insurance won't cover damage that you intentionally cause, and trying to file a claim or lying about a claim could be insurance fraud. Some policies also exclude damage caused to your vehicle if you're under the influence when you have an accident.
• Claims that exceed your coverage limits: Each part of your insurance policy has maximum coverage limits. You'll have to cover the difference if any repairs or medical bills go above that threshold.
• Mechanical breakdowns: A standard insurance policy won't cover mechanical breakdowns like engine failure or transmission problems. However, you might have coverage from a manufacturer's or extended warranty, or if you purchase a separate car repair insurance plan.
• Regular maintenance: Insurance also doesn't pay for regular maintenance, such as oil changes, check-ups, new tires or tire rotations.
• Personal belongings: Auto insurance doesn't cover damage to or theft of personal belongings inside the car, such as a laptop or phone. However, you may be able to file a homeowners or renters insurance claim if your items are stolen or destroyed.
• Damage during illegal activities: You generally won't be covered if your vehicle is damaged or you get into an accident while racing or participating in other illegal activities.
• Aftermarket add-ons: A standard policy also won't cover aftermarket add-ons, including cosmetic changes and performance upgrades, unless you get a rider or have a custom car insurance policy.
• Other drivers (sometimes): Your insurance policy generally follows your vehicle and covers other people who have permission to drive. However, it won't cover someone who doesn't have permission, and it might not cover someone who should be—but isn't—listed on your policy, such as your roommate or partner.

There may be other exceptions, and the specifics can vary depending on your policy. Review the terms and conditions, and look up parts you don't understand, to make sure you know when you'll be covered and whether you have enough coverage.

Frequently Asked Questions

Compare Car Insurance Coverage and Quotes

Car insurance companies may offer policies with different terms and limits. They also use different criteria to determine your premiums, which is one reason shopping around can save you money. If you don't want to go company by company, you can also use Experian's car insurance comparison tool to answer a few questions and get personalized quotes from multiple insurance companies.