What auto insurance covers
An auto policy is made up of several coverages. Most states require some of them, and if you finance or lease your car, your lender will usually require collision and comprehensive too.
- Liability pays for your legal responsibility to others for bodily injury or property damage.
- Collision and comprehensive pay for damage to — or theft of — your own car.
- Uninsured / underinsured motorist protects you when the at-fault driver has little or no insurance.
- Medical payments (optional) help with medical and hospital costs for you and your passengers.
- Towing and transportation (optional) cover a tow and a rental while your car is repaired.
Most auto policies run for six months or a year. Your insurance company will let you know when it’s time to renew and pay your premium.
Why you need it
- Repairing or replacing a car after an accident, theft or flood can cost a lot of money.
- Medical bills, doctor visits and hospital stays after an accident can be extremely expensive.
- If you’re responsible for injuring someone or damaging their property, you can be sued for far more than you’re worth.
- Most states require at least minimum coverage.
We encourage clients to carry more than the state minimum. Liability claims can be very large, and higher limits also protect your family if an uninsured or underinsured driver causes an accident.
Questions to ask your agent
- How much could I afford to pay out of pocket after an accident? A higher deductible lowers your premium but means paying more for repairs yourself.
- What discounts are available? Ask about paying in full, bundling policies, good-student and early-signing discounts.
- Who do I call, and what happens after I file a claim?
This guide is general information, not a policy. Coverage, limits and exclusions vary by carrier and state — your policy documents are what apply. Ask us about your specific situation.