Question

What does car insurance cover?

Car insurance pays for injuries and damage you cause in an accident. While a state minimum liability is mandatory, additional coverage options may be added according to your needs and budget.

There are different costs that car insurance will cover. In general, it includes mandatory and additional coverage. For instance, the liability insurance will protect you against the damages you cause to others, while collision coverage will act as a financial protection against damage to your own vehicle. Here is what car insurance will cover.

Expenses that occur in an accident you cause. It includes the medical expenses and property damage that happen to the other party in the accident. This is covered under liability insurance.
Accidents that include collisions with a car or other objects. This is taken care of with collision insurance.
Accidents that occur to your car due to natural disasters, vandalism, or theft are covered under comprehensive coverage.
Medical expenses for an accident are regardless of the person causing the accident. This is provided through MedPay. There is PIP or personal Injury protection that will cover your lost wages or funeral expenses.
If you have coverage like uninsured and underinsured motorist coverage, you’ll be covered even if the other driver’s insurance does not completely cover the cost of the accident.
Coverage like the gap insurance will pay the amount you owe on your vehicle in case of an accident while the loan is active.