A standard auto policy combines several types of protection – some required, some optional, and some you can choose between depending on your needs:
Liability coverage – Required in most states. Covers injuries (bodily injury liability) and damage to property (property damage liability) you cause to others in an accident. It never covers your own car.
Collision coverage – Pays to repair or replace your vehicle if it’s damaged in a crash with another car or object (like a pole or guardrail).
Comprehensive coverage – Covers non-collision damage, such as theft, vandalism, fire, falling objects, weather events, or hitting an animal.
You usually carry both comprehensive and collision together, especially if you’re financing your car. You can choose to remove one or both if your car is older or fully paid off.
Medical Payments (MedPay) or Personal Injury Protection (PIP) – Covers medical costs for you and your passengers regardless of fault. You’ll typically have one or the other, depending on your state’s laws – PIP is common in no-fault states, while MedPay is offered elsewhere.
Uninsured/Underinsured Motorist coverage– Protects you if another driver causes an accident but doesn’t