Liability – If you are the responsible party in an accident, this pays for
injuries to the other party, including medical expenses, loss of income, and potentially pain and suffering.
Property Damage – Whereas “Liability” pays for injuries to the other
party, this pays for damage to their vehicle(s) or property should you be at fault.
Collision – Pays for damage to your vehicle in an “at fault”
accident, minus your deductible
Comprehensive – Pays for damage to your vehicle in any scenario not considered a
collision. This might include theft or vandalism of your vehicle, broken windshield, damage by nature
(hail, water, tree limb or falling objects), fire (even when parked in the garage), and striking or being hit by
an animal.
Medical Payments – Covers medical expenses for you and members of your family in
the vehicle, or as a pedestrian on the street. It is important to note most policies have a rather low
limit on this coverage, perhaps $1000 to $5000
Uninsured / Underinsured Motorist – Covers medical expenses and property damage
for you, your passengers, and your vehicle should the “at fault “ party have no insurance, or less
than adequate insurance to cover the expenses.
Roadside Assistance / Towing – Optional coverage that pays for towing, flat tire
repair, running out of gas, lock outs, and jump starts, etc.
Rental Car Reimbursement – Covers a replacement vehicle while yours is being
repaired due to an “at fault” accident (and not simply a mechanical breakdown). If the other
party is at fault they would be responsible for this service to you
Other Optional Benefits with some carriers:
Accident Forgiveness – Should you be involved in an “at fault”
accident (or incur a “minor violation”) with this optional, additional fee coverage with some
carriers, no surcharge or additional premium would be imposed at renewal.
Diminishing Deductibles / Deductible rewards – This optional coverage with some
carriers offers you a reward (typically $100 per year) on your Collision deductible each year you are accident
free, usually up to a $500 maximum after 4-5 years 9 depending if they start year 1 or 2). You would
pay nothing out of pocket if you had a $500 deductible, and you had accumulated $500 reward dollars to that
point. It usually does not apply to the Comprehensive deductible.