What Does Car Insurance Cover?

car insurance covers property, liability, and medical costs

Most people have heard of car insurance. Many states require that their drivers purchase auto insurance. Without it, you cannot drive in those states. However, many people are not sure what car insurance specifically covers. Auto insurance protects you against damage to your car in addition to other benefits. Learn more about how car insurance protects you financially and legally, below. 

What Car Insurance Covers

Car insurance covers you in the event of an accident or other unexpected events. Most car insurance policies are meant to protect you if you cause damage to another person and their vehicle. There are multiple parts to basic car insurance. Most federal regulations and state regulations require that your car insurance include some combination of property, liability, and medical coverage. 


Property coverage covers the value of the other person’s car in the event of theft or damage. Many policies also include uninsured motorist coverage. This is when an uninsured driver causes an accident, and they are unable to pay for the damages to your car. The uninsured driver policy will cover your expenses. Collision insurance is another form of property coverage. While not all insurance policies offer insurance policies, many people choose to purchase this as an added extra. Collision insurance is when the company covers damages caused to your vehicle by a crash. 


Liability is your legal responsibility to others for harming them or their property in a collision. Most basic auto insurance policies include liability. A specific type of liability covered is bodily injury liability. This means that if you cause an accident that harms someone, your insurance will help you pay that cost. Property damage liability is another type of liability. This covers damage to another person’s property that you caused while operating your vehicle. These two types of liability insurance are critical to protecting yourself against liability.


If you are involved in an accident, you may incur medical costs to you or your passengers. Medical coverage will help protect you against those costs. Specifically, medical payments or personal injury protection is a way to reimburse medical expenses that you or your passengers have to pay after an incident involving your vehicle. 


There are many opportunities to protect yourself with car insurance. There are plenty of pricing options depending on your budget. Use an agent to help you understand the important aspects of car insurance. Call a Redwood Agent to get started today!