Full-coverage car insurance typically includes liability insurance, comprehensive and collision coverage. When combined, these three coverage types compensate other drivers when you cause an accident and also protect your vehicle from accident and non-accident damage.
Liability Insurance
Liability car insurance covers medical bills and car damage for other people in accidents you cause. Almost every state requires minimum levels of liability coverage, as it’s the most important kind to have.
For example, Nevada requires $25,000 of bodily injury liability coverage per person, $50,000 of bodily injury liability coverage per accident and $20,000 of property damage liability coverage per accident. These coverage limits are written as 25/50/20, and they’re similar to many other state minimums.
You can also get higher limits, even up to $300,000 or more in bodily injury coverage per person depending on the insurer. Having full-coverage insurance doesn’t require you to have more than your state’s minimum level of liability coverage, but higher limits offer better protection.
Comprehensive Coverage
Also called “other-than-collision” coverage, comprehensive coverage covers repairs if your car is damaged by anything other than a car-related accident. This includes things like damage from crashing into a wall or damage from a hailstorm. Comprehensive insurance also covers damage from:
- Fire
- Falling objects
- Inclement weather
- Collision with a stationary object
- Vandalism
- Theft of car parts
Comprehensive coverage will also usually cover theft of the entire vehicle.
Collision Coverage
Collision insurance covers repair bills for your car when you cause an accident. This insurance covers up to the value of your car or pays a settlement value if your car is totaled. If you have a vintage or luxury car that appreciates in value, you can get classic car insurance that covers up to an agreed-upon value.
Additional Coverages
The following choices are optional and usually considered separate from full-coverage insurance:
Uninsured/Underinsured Motorist
Not everyone on the road has insurance. Underinsured and uninsured motorist coverage protects you if someone without enough insurance causes an accident. It comes in two types — bodily injury and property damage — and often mirrors the coverage levels you select for liability insurance.
Some states require this coverage, so it would be included in full-coverage auto insurance policies in those cases. Other states don’t require it, but it’s still a good idea to have it. Many people drive with minimum liability limits, which often aren’t enough if someone needs extensive medical care after an accident.
Medical Coverage
Medical coverage is another optional type of insurance some states require. It comes in two varieties: medical payments coverage (MedPay) and personal injury protection (PIP). Both can cover medical bills for you and your passengers after an accident no matter who caused it. But PIP insurance adds coverage for death benefits and lost wages.
Some states have a no-fault car insurance system, which means drivers use their own insurance to cover medical bills no matter who caused the accident. These states usually require drivers to have minimum PIP coverage to make the system work.
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