Car insurance coverage

Car insurance coverage is a contractual agreement between an insured driver and an insurer that specifies financial protection against vehicle-related risks. Liability coverage pays for bodily injury and property damage that drivers cause to others; examples include hospital bills and car repair costs.

Collision coverage reimburses for damages to the policyholder’s car from at-fault accidents, such as rear-end collisions or rollovers. Comprehensive coverage protects against non-collision incidents like theft, vandalism, fire, or natural disasters–examples are hail damage and windshield breakage.

Uninsured motorist coverage pays for injuries and damages caused by at-fault drivers who lack liability insurance, as shown in hit-and-run cases. Underinsured motorist coverage applies when at-fault parties’ liability limits do not cover all losses; medical expenses exceeding $30,000 often trigger this protection.

Personal injury protection (PIP) covers medical expenses regardless of fault, typically up to $10,000 per person in states like Florida and New York. Medical payments (MedPay) add reimbursement for healthcare costs beyond PIP limits, commonly covering ambulance fees and X-rays.

Gap insurance pays the difference if a leased or financed vehicle is totaled and its value falls below the remaining loan balance; average gaps reach $5,000 on new cars after first-year depreciation. Rental reimbursement coverage compensates policyholders for rental car costs while covered vehicles undergo repairs–common daily limits are $30 per day up to 30 days, as per YourInsurance.info.