3 Types of Auto Coverage Explained

by Valerie Hawkins

Chances are, if you own a car, and you’re a law-abiding citizen, you have auto insurance. And although auto insurance is one of the most common types of insurance out there – there are a lot of icky, confusing terms that go along with it.

But don’t let insurance mumbo-jumbo get you overwhelmed. My goal is to explain the three most common types of auto insurance coverages without putting you to sleep.

Here goes nothin’…

Types of Car Insurance Coverages

1. Liability coverage

Protects you if you cause damage to others and/or their stuff.

Liability can help cover another person’s medical bills or costs to repair their vehicle and property damaged from the accident.

Most states have legal minimums to how much liability coverage you must have. It’s often a good idea to carry more than what’s required, to decrease your chance of high out-of-pocket costs later.

2. Collision coverage

Covers your car if you hit another car, person or non-moving object (like those darn ornamental rocks cousin Todd has at the end of his driveway). #TrueStory

Collision coverage helps cover costs to repair your vehicle regardless of fault. Collision does not cover if you hit an animal or if your car breaks down because it’s really old and untrustworthy.

Are you still awake? Ok, good.

3. Comprehensive coverage

Protects your car from things other than liability and collision, like theft, vandalism, fire, severe weather, hitting Bambi (don’t worry, he’s fine), etc.

Comprehensive coverage is typically sold alongside collision coverage. Think of them as peanut butter and chocolate. Ok on their own. But together, magic.

Understanding car insurance

Now that you know about the three types of car insurance coverage, you're prepared to find the right coverage. Sometimes, when you have more questions than answers on confusing insurance terms, it might seem easier to do nothing at all. So, whether you’re protecting the things you love or preparing for tomorrow, don’t get overwhelmed, get started. See our car insurance offerings or get an auto quote.

Updated 12-7-22