Auto insurance coverage includes:
• Liability: Pays for injuries to others and damage to their property if you cause an accident
• Personal injury protection (PIP), also known as “no-fault” (not required in most states): Ensures payment for your and your passengers’ medical bills by your own insurer even if the accident is not your fault, and may also pay for lost wages, funeral expenses and other losses
• Medical payments: Pays your and your passengers’ medical bills, up to a predetermined limit, regardless of who was at fault in the accident
• Collision: Pays for damage to your car resulting from an accident
• Comprehensive: Pays for the theft of your car or damage to your car caused by something other than an accident
• Uninsured and underinsured motorist: Pays for damages resulting from an accident caused by an uninsured, underinsured or hit-and-run driver
(takes the place of liability insurance that the other driver should have purchased but didn’t)
• Commercial (business) auto insurance: Covers losses incurred in the course of conducting your business.
There may also be add-ons to your main insurance policy, such as being entitled to a free rental car while your car is being repaired or replaced, or emergency roadside assistance that provides help if, for example, you have a flat tire, dead battery or run out of gas.