The six coverages you'll see on every car insurance quote

When you open a car insurance quote, you'll see six main coverage types. Liability covers damage you cause to someone else. Collision covers damage to your own car from hitting something. Comprehensive covers theft, weather, and vandalism. Uninsured motorist covers you if someone without insurance hits you. Medical payments pays your medical bills after a crash, regardless of fault. Uninsured/underinsured motorist property damage covers your car when hit by someone without enough insurance.

Your state requires you to carry liability. The other five are optional, though your lender will require collision and comprehensive if you're financing or leasing the car. Each coverage has a deductible — the amount you pay out of pocket before insurance kicks in — and a limit, which is the maximum the insurance company will pay.

Key Takeaways

  • Liability is required by law in every state and covers damage or injury you cause to someone else, not damage to your own vehicle.
  • Collision and comprehensive cover your own car, but collision only covers crashes while comprehensive covers theft, weather, and vandalism.
  • Uninsured and underinsured motorist coverage protects you when the other driver has no insurance or not enough insurance to cover your damages.
  • Your deductible is what you pay when you file a claim; a higher deductible lowers your monthly premium but costs you more if you crash.
  • If you're financing or leasing your car, your lender will require collision and comprehensive coverage as a condition of the loan.

Liability coverage: what you're legally required to carry

Liability coverage pays for damage or injury you cause to someone else — their medical bills, their car repair, their property. It does not cover your own damage. Every state requires you to carry a minimum amount, but the minimum varies. Some states require as little as $15,000 per person injured, while others require $25,000 or more. Most insurance agents recommend carrying higher limits — $100,000 per person and $300,000 per accident is common — because a serious crash can create bills that exceed the state minimum.

Liability has two parts: bodily injury liability, which covers medical bills and lost wages for people you injure, and property damage liability, which covers their vehicle and other property. You'll see these written as numbers like 25/50/25, meaning $25,000 per person for bodily injury, $50,000 total per accident for bodily injury, and $25,000 for property damage.

If you cause a crash and your liability limit is too low to cover the other person's damages, you can be sued for the difference. That's why carrying limits higher than your state's minimum protects your personal assets — your house, your savings, your wages.

Collision coverage: what happens when you hit something

Collision coverage pays to repair or replace your car after you hit another vehicle, a tree, a guardrail, or any other object. It covers accidents you cause and accidents caused by other drivers, as long as there's a collision involved. You choose your deductible — typically $250, $500, $1,000, or higher — and the insurance company pays the rest, up to your car's actual cash value.

Collision is optional if you own your car outright, but if you're financing or leasing, your lender will require it. The reason is straightforward: the lender owns the car until you pay it off, and they need to know it will be repaired if you crash it. If you own an older car worth $3,000 or less, the cost of collision coverage may exceed what you'd receive in a claim, so many owners drop it once their car is paid off.

Your deductible directly affects your monthly premium. A $500 deductible costs less per month than a $250 deductible, but you'll pay $500 out of pocket if you file a claim. The math depends on how often you expect to crash — if you're a cautious driver with a clean record, a higher deductible saves you money over time.

Comprehensive coverage: theft, weather, and vandalism

Comprehensive coverage pays for damage to your car that doesn't involve a collision — theft, weather (hail, flooding, wind), vandalism, hitting an animal, or glass damage. It covers events outside your control. Like collision, you choose your deductible, and the insurance company pays the rest up to your car's actual cash value.

Comprehensive is optional if you own your car, but required if you're financing or leasing. If you live in an area with frequent hail, heavy snow, or flooding, comprehensive becomes more valuable because you're more likely to file a claim. If you park on the street in a high-theft area, comprehensive protects you if your car is stolen.

Many insurance companies offer a lower deductible for glass claims — sometimes $0 or $100 — because glass damage is common and relatively inexpensive to fix. Ask your agent whether your policy includes this option, because replacing a windshield can cost $300 to $500 out of pocket otherwise.

Uninsured and underinsured motorist coverage: protection when the other driver has no insurance

Uninsured motorist coverage pays your medical bills and lost wages if you're hit by a driver with no insurance. Underinsured motorist coverage pays the difference if the other driver has insurance but not enough to cover your damages. Together, they protect you from being stuck with bills when the person who hit you can't pay.

These coverages are required in some states and optional in others. Even where optional, most agents recommend carrying them because roughly one in eight drivers on the road is uninsured, and many more are underinsured. If an uninsured driver causes a serious crash, your own medical payments coverage and collision coverage will pay for your when ready needs, but uninsured motorist coverage covers additional losses like pain and suffering or lost income.

Uninsured motorist coverage has a limit, just like liability. You choose how much protection you want — often matching your liability limits makes sense, so you have the same protection whether you cause the crash or someone else does. Some states allow you to reject this coverage in writing, but most agents advise against it.

Medical payments coverage: your medical bills after any crash

Medical payments coverage (sometimes called MedPay) pays your medical bills and those of your passengers after a crash, regardless of who caused it. It covers hospital visits, surgery, dental work, and ambulance fees. It does not cover lost wages or pain and suffering — that's what uninsured motorist coverage is for.

Medical payments coverage is optional in most states and typically costs $10 to $30 per month for $1,000 to $5,000 in coverage. It's useful because it pays quickly — often within weeks — while liability claims from the other driver's insurance can take months. If you have good health insurance, medical payments coverage may be redundant, but if you're uninsured or underinsured medically, it's a cheap way to cover when ready medical costs after a crash.

Your health insurance may also cover crash injuries, so check your policy before deciding how much medical payments coverage to buy. Some people skip it entirely if they have solid health coverage; others buy the maximum because it covers passengers too.

Uninsured/underinsured motorist property damage: covering your car when the other driver has no insurance

Uninsured/underinsured motorist property damage (UMPD) coverage pays to repair your car if you're hit by a driver with no insurance or not enough insurance. It's different from collision coverage because it applies specifically when the other driver is uninsured or underinsured, not when you cause the crash yourself.

This coverage is optional in most states and relatively inexpensive — often $5 to $15 per month. It's useful because collision coverage requires you to pay your deductible even when someone else caused the crash. With UMPD, you typically pay a lower deductible or no deductible at all when the other driver is uninsured. However, you'll need to prove the other driver was uninsured, which requires a police report and documentation.

Some states don't offer UMPD as a separate coverage; instead, they allow you to use your uninsured motorist bodily injury coverage to pay for property damage too. Ask your agent whether your state offers UMPD and whether it makes sense for your situation.

How deductibles and limits work together

Your deductible is the amount you pay out of pocket when you file a claim. Your limit is the maximum your insurance company will pay. If you have a $500 deductible and $30,000 in collision coverage, and your car sustains $8,000 in damage, you pay $500 and insurance pays $7,500. If damage totals $35,000 but your limit is $30,000, insurance pays $30,000 minus your deductible, and you're responsible for the rest.

Higher deductibles lower your monthly premium because you're agreeing to pay more out of pocket if you crash. Lower deductibles raise your monthly premium but cost you less when you file a claim. The right choice depends on your financial situation — if you have $1,000 in savings, a $1,000 deductible may be risky because you couldn't afford to pay it after a crash. If you have $5,000 in emergency savings, a $1,000 deductible is manageable.

Your limits should reflect the value of your car and your assets. If your car is worth $15,000, a $15,000 collision limit makes sense because that's the most insurance will ever need to pay. If you own a house or have significant savings, higher liability limits protect those assets if you cause a serious crash.

Frequently Asked Questions

Do I have to carry collision and comprehensive if I own my car outright?

No. If you own your car with no loan, collision and comprehensive are optional. However, if you're financing or leasing, your lender will require both. Many owners keep collision and comprehensive on older cars if the coverage cost is low relative to the car's value, but drop it once the car is worth very little.

What's the difference between uninsured motorist and uninsured motorist property damage?

Uninsured motorist coverage pays your medical bills and lost wages if hit by an uninsured driver. Uninsured motorist property damage pays to repair your car. You can carry one, both, or neither, depending on your state and your preference. Both protect you when the other driver has no insurance.

If I have health insurance, do I need medical payments coverage?

Not necessarily. Medical payments coverage is redundant if your health insurance covers crash injuries. However, it pays faster than health insurance and covers your passengers too. If you're uninsured or have a high deductible health plan, medical payments coverage may be worth the cost.

Can I choose my deductible separately for each coverage type?

Yes. You can set a $500 deductible for collision, a $250 deductible for comprehensive, and a $1,000 deductible for uninsured motorist property damage, all on the same policy. Your agent can show you how each choice affects your monthly premium.

What happens if I cause a crash and my liability limit is too low?

The other person can sue you for the difference between your liability limit and their actual damages. That's why carrying limits higher than your state's minimum protects your personal assets. An umbrella policy can provide additional liability coverage for a relatively low cost.