Car insurance can feel overwhelming, especially with all the jargon and terms thrown your way. From bodily injury liability to full glass coverage, it’s easy to feel lost when figuring out what each type of coverage actually does for you.
But understanding these terms is crucial—not just to pick the right policy, but to ensure you’re fully protected in case of an accident.
In this guide, we’ll break down the most important car insurance coverage options in plain language, so you can confidently understand what you’re paying for and how it works to protect you, your passengers, and your vehicle.
Whether you’re looking to clarify your current policy or shopping for new coverage, this article has you covered.
Bodily Injury Liability
The safety and protection of others
This pays for injuries to others when you’re responsible for an accident.
This can cover:
- Necessary medical bills
- Pain and suffering
- Lost wages
- Funeral expenses
Property Damage Liability
This pays for damage you cause to someone else’s property.
This can cover:
- Damage to vehicles
- Damage to other kinds of property, like houses, telephone poles and mailboxes
To ensure you have adequate coverage in the event of an accident with an uninsured motorist, we recommend including this coverage.
If Uninsured Motorist Property Damage coverage is rejected, a signed form will be needed.
Uninsured Motorist Bodily Injury
Injury protection from uninsured or underinsured drivers
This pays for your injury expenses if the driver who caused the accident is uninsured.
This can cover:
- Necessary medical bills
- Pain and suffering
- Lost wages
- Funeral expenses
To ensure you have adequate coverage in the event of an accident with an uninsured or underinsured motorist, we recommend the Uninsured Motorist Bodily Injury limit be the same as the Bodily Injury Limit. If this coverage has limits lower than your Bodily Injury Liability Limit a signed form will be needed.
Uninsured Motorist Bodily Injury Option
Uninsured motorist bodily injury coverage pays for your injury expenses if the at-fault driver is uninsured or underinsured. You can choose from two different limit options for this coverage:
Added-On limit: If the at-fault driver is uninsured, you can collect up to the full limit of your uninsured motorist bodily injury coverage. If the at-fault driver is underinsured, you can collect up to your full limit in addition to the full amount of their liability coverage.
Reduced limit: If the at-fault driver is uninsured, you can collect up to the full limit of your uninsured motorist bodily injury coverage. If the at-fault driver is underinsured, your limit will be reduced by the amount of liability coverage the other driver has.
Uninsured Motorist Property Damage
Property protection from uninsured drivers
This pays for damage to your vehicle if the driver who caused the accident is uninsured.
This can cover:
- Damage to your car
- Rental expenses, depending on your state
To ensure you have adequate coverage in the event of an accident with an uninsured motorist, we recommend including this coverage. If Uninsured Motorist Property Damage coverage is rejected, a signed form will be needed.
Medical Payments (MedPay)
Your safety and protection
If you’re hurt in a car accident, this may help pay for certain expenses for you and your passengers.
This can cover:
- Necessary medical bills
- Funeral expenses
Collision Deductible
Repairing accident damage to your vehicle
Regardless of who is at fault, this pays to repair or replace your car if it’s damaged in an accident with another vehicle or object like a tree, pothole or guardrail
This can cover:
- Accident-related repairs
- Towing due to an accident
- Vehicle replacement if your car is totaled
Other Than Collision Deductible (Comprehensive)
Fixing other kinds of damage to your vehicle
This covers damage to your car that isn’t a result of a collision with another vehicle or object
This can cover damage from:
- Fire
- Hail, hurricanes and fallen trees
- Natural disasters, like earthquakes and floods
- Theft and vandalism
- Rocks kicked up by other cars
- Accidents involving birds or animals
- Towing due to an accident
Full Glass Coverage
Repairing or replacing auto glass
This covers repair or replacement to your windshield, windows and other auto glass, without a deductible.
This can cover:
- Repairs of small chips or cracks
- Full glass replacement
- Recalibrating of vehicle sensors
Rental Reimbursement (Loss of Use or Transportation Expenses)
Driving while your car is being repaired
This pays for transportation costs if your car can’t be driven after an accident or is in the shop for covered repairs.
This can cover:
- Rental cars
- Ridesharing
- Other transportation, like taxis, trains and buses
The cost of renting a vehicle for weeks or even a few days could be significant. We recommend selecting a higher limit to avoid out-of-pocket expenses.
Towing and Labor Costs (Roadside Assistance)
Helping you on the road
24/7 Roadside Assistance can get you going again.
This can cover:
- Towing, including those that aren’t accident-related
- Changing flat tires
- Jump-starting dead batteries
- Delivering gas if you run out
- Getting your car out if it’s stuck in mud or snow
- Unlocking car doors if you’re locked out
Conclusion
Car insurance doesn’t have to be a confusing topic. By understanding the key definitions and what each type of coverage offers, you can confidently select the right policy for your needs.
From liability protection to comprehensive coverage and roadside assistance, every part of your plan serves an important purpose in keeping you safe and financially secure.
So, are you ready to make sense of your car insurance policy and drive with peace of mind?
