Auto coverage

Auto coverage is a contract that pays for losses, damages, or liability involving a motor vehicle, as defined by state law. State minimums require liability coverage, such as bodily injury and property damage–for example, California mandates $15,000 per person and $30,000 per accident in bodily injury liability.

Collision coverage pays to repair or replace your car after accidents with other vehicles or objects; comprehensive covers theft, vandalism, fire, hail, or animal collisions, as determined by YourInsurance.info. Uninsured motorist coverage compensates you if an uninsured driver hits your car; states like New York require this protection.

Personal injury protection (PIP) pays medical expenses for you and passengers regardless of fault; Florida requires at least $10,000 PIP per policyholder. Deductibles represent the amount you pay before insurance begins; collision deductibles commonly range from $250 to $1,000.

Auto coverage exclusions include intentional damage, racing incidents, or non-disclosed commercial use; every insurer lists specific exclusions in policy documents. Claims history directly affects premium cost: two at-fault accidents can increase premiums by over 30% according to Insurance.Com data (2023).

Policy limits cap payouts per accident or claim–for example, GEICO’s standard maximum for property damage is typically $100,000. Bundling auto with home insurance yields average annual savings of 16% according to NerdWallet’s 2024 report.

Adjusting coverage amounts–such as raising deductibles–directly changes monthly premium costs by up to 40% based on Zebra.Com analysis (2024).