When you purchase an auto insurance policy, you are buying a package of individual types of coverage. Each protects you against different types of losses. Once you understand the various coverage options, such as: liability auto insurance, uninsured/underinsured motorist coverage, collision insurance and comprehensive insurance, you can decide which coverages to include in your personal auto insurance package. You can also determine the limits of auto insurance coverage you will need.
Bodily Injury (BI) Liability Insurance pays, up to the coverage limits, for damages due to the injury or death of others in an auto accident for which you or the operator of your vehicle are legally responsible. It also pays for your legal defense in the event of a lawsuit resulting from an accident for which you are liable.
Property Damage (PD) Liability Insurance pays, up to the coverage limits, for another individual's vehicle or property that has been damaged in an accident for which you or the operator of your vehicle is legally responsible.
Medical Payments Coverage pays, up to the coverage limits, for necessary medical treatment, hospital and funeral expenses for you and your passengers who get injured or killed in an accident.
Uninsured/Underinsured Motorists (UM/UIM) Coverage UM/Uninsured Motorists Coverage pays for bodily injury to you and/or your passengers resulting from the negligence of someone who has no auto insurance. UIM/Underinsured motorist coverage pays for bodily injury to you and/or your passengers resulting from the negligence of someone whose liability insurance limits are insufficient.
Collision Coverage pays, up to the coverage limits, for damage to your vehicle or a vehicle you are operating caused by a collision. This coverage is usually required if you have a vehicle loan.
Comprehensive Physical Damage Coverage pays, up to the coverage limits, for damage to your vehicle resulting from glass breakage, deer, theft, fire, vandalism, flooding, hail or other perils (but not damage by collision or overturning). It is usually required if you have a vehicle loan.
Rental Reimbursement Coverage pays up to a specified amount for rental vehicle charges while your vehicle is being repaired for damage covered under your policy. If you prefer not to incur the cost of renting a vehicle yourself and cannot be without a vehicle while yours is being repaired, you might consider this coverage.
Towing and Labor Coverage covers some costs incurred for services rendered at the place of breakdown or for towing to a repair shop. If you lock the keys in the vehicle or need a tire changed, this may also be covered.