Uninsured/Underinsured Motorist Coverage If your car is struck by a hit-and-run driver or someone who doesn’t have auto insurance, uninsured motorist coverage will pay for your vehicle repairs. It also covers any medical bills, pain-and-suffering costs and (worst-case scenario) funeral expenses for any passengers in your car. This type of coverage is mandatory in some states.
Collision Coverage This is exactly what it sounds like: If you’re in a car collision, this coverage helps pay for your vehicle repairs. If the repairs add up to more than the value of your car, your insurance company will probably cut you a check for the total value of your vehicle instead of paying for repairs. If you have a brand-new – or relatively new – car, collision coverage is a must-have.
Bodily Injury Liability Coverage If you’re in an accident that causes injury to others, this insurance covers medical treatment, rehabilitation costs, funeral expenses, legal fees and pain-and-suffering costs. It covers your passengers, as well as drivers and passengers in other cars and injured pedestrians. This type of coverage is mandatory in most states, and minimum limits vary from state to state.
Property Damage Liability Coverage If you cause a car accident, this not only covers the damage you cause to other car – it also covers property damage. Let’s say you swerve to miss a dog or a deer and slam into someone’s fence. Property damage liability coverage will help pay for the fence repairs or replacement. However, this coverage rarely covers damage to your own car. To pay for those damages, you’ll need collision coverage.