What your auto insurance actually covers

Start with the loss, then find the coverage

An auto policy combines several kinds of protection. A familiar label or low premium tells you little about which losses are included. Read the declarations page, which lists your selected coverages, limits, and deductibles, alongside the policy wording.

Three distinctions that matter

• Liability addresses covered injuries or property damage you cause to other people. It does not pay to repair your own car after a crash.
• Collision addresses damage to your car from a collision. Comprehensive addresses other covered causes, such as theft, hail, fire, or flood. Each can have its own deductible.
• Uninsured or underinsured motorist protection, medical payments, and personal injury protection address different risks. Availability, requirements, and what they pay vary by state and policy.

Make quotes genuinely comparable

Use the same drivers, vehicles, coverages, limits, and deductibles when requesting quotes. Compare the full policy-period cost and payment fees. A lower premium may reflect a larger amount you would pay after a loss or a coverage that has disappeared.

State-required coverage is a legal starting point. A lender or lessor may also require protection for the vehicle. Check both before changing a policy.

Ask before you buy

• Which household drivers must be listed, and are any drivers excluded?
• Does the policy cover delivery work, rideshare driving, or other business use?
• Is rental reimbursement included, and what are its daily and total limits?
• Can I comfortably pay each deductible after an unexpected loss?

Finish with a coverage check

Verify the insurer's license and complaint information with your state insurance department. Keep written proof of the new coverage and its effective date before ending an existing policy. This guide is general U.S. education; your policy and state rules determine coverage.