10 Key Types of Car Insurance Coverage

Selecting the right car insurance coverage requires understanding the available options and how they protect against different risks. Beinsure determined the necessary coverage and analyzed car insurance costs. The price depends on factors like coverage type, driving history, location, vehicle type, and insurer. See US Auto Insurance Rates by States in 2025.

Basic liability coverage is usually cheaper, while full coverage, including collision and comprehensive insurance, costs more. Higher coverage limits and lower deductibles increase premiums, while discounts for safe driving, bundling policies, or having a clean record can reduce costs.

Key types include liability, which covers damages you cause to others, collision for vehicle repairs after an accident, and comprehensive for non-collision incidents like theft or weather damage. Uninsured/underinsured motorist coverage protects against drivers without sufficient insurance. Additional options like medical payments, gap insurance, and roadside assistance provide further protection.

Comparing auto insurance types is crucial for finding the best insurance coverage at the best price. Look at what each policy covers, the cost of premiums, deductibles, and any additional benefits.

• TOP 10 Largest U.S. Car Insurance Companies in 2025
• TOP 50 Largest U.S. Auto Insurance Companies in 2025
• TOP 50 Largest U.S. Passenger Auto Liability Insurance Companies
• TOP 100 Property & Casualty Insurance Companies in the U.S. in 2025

This comparison helps you tailor a policy to your needs, ensuring you get the most bang for your buck.

Property Damage Liability Insurance

Property damage liability coverage is part of a car insurance policy. It helps pay to repair damage you cause to another person’s vehicle or property.

Property damage insurance liability coverage is required by law in most states. It typically helps cover the cost of repairs if you are at fault for a car accident that damages another vehicle or property such as a fence or building front.

Property damage liability coverage typically does not cover damage to your own vehicle. Collision coverage can help with repair costs for your car. Choosing a higher liability limit than the state minimum may be beneficial. If repair costs exceed your coverage, you will be responsible for the difference.

How much property damage liability are you required to have?

Every state requires a driver to carry a specified minimum limit of liability coverage. States generally require property damage liability coverage and bodily injury liability coverage.

According to Personal Auto Insurance Rates Overview, the mandatory coverage limits differ from state to state. For example, in California, drivers are required to have at least $5,000 of property damage liability coverage. In Texas, the minimum amount for property damage liability coverage is $25,000. In Nevada, it’s $10,000.

A limit is the maximum amount your policy will pay for a covered claim. You can choose your liability coverage limits when you buy car insurance or adjust them later with the help of your insurance provider.

Consider your property damage liability insurance limits

You can usually opt to purchase limits higher than the minimum set by your state. For example, if you chose a $10,000 coverage limit and the amount of damage you cause exceeds that, you may have to pay the difference out of pocket.

Having a higher limit of liability coverage may help you avoid having to pay out of pocket after an at-fault accident. The higher you set your coverage limits, the higher your insurance premiums will likely be.

What does it cover? 

• Repairs to another person’s car, fence, mailbox, or other property
• Road sign repairs
• Legal expenses related to property damage

Property damage liability may cover others’ property damage, including vehicle repairs if you’re at fault in an accident. It may also cover related legal fees. Property damage liability differs from personal liability insurance, which many property insurance policies include.

PD liability is for damage you cause while driving, while personal liability is for damage and injuries you’re responsible for when not driving (see U.S. Commercial Auto Insurance Underwriting Profitability).

How does it work?

• If you’re at fault for an accident, your PD coverage will help pay for the other person’s property repairs 
• You choose your coverage limits, which is the maximum amount your insurer will pay 
• If the damage costs more than your coverage limit, you may have to pay the difference 

What are the requirements? 

• Each state has its own minimum requirements for PD coverage
• Most states require at least $25,000 in coverage per accident

What’s the difference between PD and personal liability insurance? 

• PD is part of your vehicle insurance policy
• Personal liability insurance covers damage and injuries you’re responsible for when not driving

How much property damage car insurance do I need?

You’ll need at least the minimum amount of property damage liability auto coverage your state requires. Here are some examples of how much property damage car insurance you need in different states:

• California car insurance: At least $5,000 of property damage liability
• Florida car insurance: At least $10,000 of property damage liability
• Texas car insurance: At least $25,000 of property damage liability

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Liability Insurance Coverage

Liability insurance coverage protects you financially if you’re responsible for someone else’s injuries or property damage. Liability coverage comes standard with most vehicle and property insurance policies, including auto and homeowners insurance.

For car insurance, you may see this coverage referred to as auto liability coverage. For property insurance, it’s usually referred to as personal liability coverage.

Liability insurance protects you financially if you’re responsible for an accident. It covers the other party’s medical expenses, property damage, and legal costs, reducing your out-of-pocket expenses. This coverage ensures that injury or damage claims against you are paid up to your policy limits, preventing financial strain.

Types of liability insurance

Auto liability. Covers you if you are at fault for an accident while driving your car. This includes bodily injury to others and damage to their property. 

Commercial general liability (CGL). Covers you if you are at fault for bodily injury, property damage, slander, libel, or false advertising. This type of insurance is often used by businesses. 

Small business liability. Covers you if you are at fault for bodily injury or property damage on your business premises or caused by your business activities. 

What liability insurance covers Medical expenses, Lost wages, Pain and suffering, and Defense and court costs if you are sued. 

Vehicle insurance (including car, motorcycle, RV, boat, and others)

• Injuries you cause to someone else while driving
• Damage you cause to other vehicles while driving
• Damage you cause to someone else’s property, such as a mailbox or street sign
• Legal expenses for accident-related lawsuits

What factors affect the cost of liability insurance? 

Your age, Your location, Your driving record, The type of vehicle you drive, and How you use your vehicle. 

What state laws affect liability insurance?

• Each state has its own minimum required coverage amount. 
• Some states require liability coverage to legally drive on the road. 

How much liability coverage do I need?

Typically, you should select a limit that matches or exceeds your total net worth. This way, your assets are well-protected if you’re legally responsible for someone else’s injuries or property damage. 

Liability coverage limits for different types of vehicles are typically represented by three numbers, e.g. 25/50/25. These numbers represent how much you’re covered for bodily injury per person ($25,000), bodily injury per accident ($50,000), and property damage per accident ($25,000). For personal liability coverage, you select one total limit, typically ranging from $100,000 to $500,000.

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Bodily Injury Liability Insurance

Bodily injury liability is a type of insurance that pays for injuries and medical bills you cause to others in an accident. It’s included in most car insurance policies and is required by most states. 

Bodily Injury Liability Coverage (BI) is the part of your insurance that helps pay for injuries to others if you’re at fault for an accident. It can also help pay for legal fees if you’re sued for damages.

In general, BI is one of the coverages required by most states and is included in most car insurance policies. That being said, it’s still a good idea to make sure it’s part of your policy.

This is a subset of liability coverage. Bodily injury liability pays for injuries you cause to others in an accident. Protecting yourself from hefty medical bills and legal fees is a must-have.

Bodily Injury Liability can help pay the cost of your legal defense and any associated court fees if the other party sues you. For an at fault accident, Bodily Injury Coverage can help pay expenses for others injured in the accident if they have to miss work or can’t work due to their injuries.

In some cases, claims may involve payment when there is emotional stress or prolonged pain from an accident.

In the unfortunate event that an accident results in a fatality, Bodily Injury Liability coverage will help pay for any related funeral costs.

What does bodily injury liability insurance cover? 

Bodily injury liability insurance covers medical bills, lost wages, legal fees if you’re sued, and compensation for pain and suffering for others injured in an accident where you’re at fault. It applies to drivers or passengers in another vehicle, pedestrians, or unrelated passengers in your car.

This coverage does not cover your own or your family’s medical expenses or lost income. However, it may help with legal costs if you’re sued for an accident you caused.

When does bodily injury liability apply? 

• If you’re at fault in an accident
• If you’re sued for damages

How much insurance coverage should I have?

• You should have enough coverage to drive legally in your state
• Some experts recommend having limits of at least $100,000/$300,000
• You may want to have enough coverage to cover your net worth

Depending on where you live, your state may have a minimum Bodily Injury Liability requirement to register your vehicle.

It’s important to note, that even though your state may set a limit, it may not be enough. When shopping for insurance, it’s a great time to make sure you’re protected.

What happens if I don’t have enough coverage? 

• You may still be responsible for paying for the other person’s injuries
• The other driver may sue you, which could put your assets at risk

What are bodily injury liability insurance limits?

In general, BI limits are broken into 2 parts. This is often shown as a “number/number” (ex., 100/300).

Here, the numbers are:

• In the thousands
• 1^st is the per person limit
• 2^nd is the per accident limit

So for example 100/300, would be:

• $100,000 per person
• $300,000 per accident

Per person. The most your Bodily Injury Coverage would pay per person. This is also limited by the per accident total.

Per accident. The most your Bodily Injury Coverage would pay per accident. So no matter how many people are injured, this is the most your policy would pay for injuries you cause.

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Collision Insurance Coverage

Collision insurance is a type of auto insurance coverage that protects your vehicle in the event of a car accident. It can be particularly valuable if you have a newer or more expensive vehicle.  It’s also important if you rely on your vehicle for work and other priorities. Collision insurance helps cover the cost of repairs or replacement for your vehicle, regardless of who is at fault. 

Collision coverage pays for damage to your vehicle from a crash, whether with another car or a stationary object like a tree or guardrail.

It helps in accidents involving no other party, insufficient coverage from another driver, or hit-and-run incidents. However, it does not cover damage from natural disasters, vandalism, or theft—comprehensive insurance covers those risks.

How does collision insurance work?

When it comes to understanding collision insurance, two key components to consider are your deductibles and premiums. A deductible is the amount you’ll pay out of pocket before your insurance company covers the remaining expenses in the event of an accident.

A premium is the regular payment you make to your insurance company to maintain coverage. The amount of your premium is determined by your coverage level, risk profile, and the insurance company’s calculations. Insurance companies will use premiums to cover their costs and generate profit.

When filing a collision insurance claim, first contact your insurance company and provide the necessary details about the incident. You may be asked for photos or a copy of the police report. The insurance company will assess the damage and estimate the cost of repairs or replacement.

Once your claim is approved, you may be required to pay your deductible before receiving the insurance payout.

How much does collision insurance cost?

The cost of collision insurance varies depending on several factors. Take a look at the factors that will have the biggest impact on pricing.

Type of vehicle. Generally, more expensive and luxurious vehicles will have higher collision insurance rates because of the higher repair and replacement costs associated with them. Less expensive and older vehicles may have lower rates as their repair costs are typically lower.

Driver’s age and driving history. Younger, less experienced drivers tend to face higher collision insurance rates because they are statistically more likely to be involved in accidents. Additionally, drivers with a history of accidents or traffic violations are considered higher risk and may be charged higher premiums.

Geographic location. The location where the vehicle is primarily driven and parked could impact the cost of collision insurance. Areas with higher rates of accidents or theft will likely have higher premiums. Urban areas with heavy traffic and crowded parking conditions may also result in higher rates because of the increased risk of accidents and damage.

Coverage limits and deductibles. Collision insurance policies tend to be highly customizable and as a result, come in a wide range of prices. Higher coverage limits and lower deductibles will generally result in higher premiums. Insurance companies may charge a higher premium to offset their potential payout.

Insurance companies’ policies. Different insurance companies have different pricing structures and underwriting guidelines, resulting in a wide range of premium rates. It’s important to shop around and compare quotes from multiple insurance providers to find the most suitable and cost-effective option for your situation.

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Rental Reimbursement Insurance 

Rental reimbursement insurance coverage will typically cover the cost of a rental car up to a certain dollar amount per day for a set number of days. Without rental reimbursement coverage, you may be responsible for the cost of a rental car if your car cannot be driven after an accident.

Rental insurance coverage helps cover transportation costs, such as a rental car or public transit fare, while your vehicle is being repaired after a covered accident.

It does not apply to routine maintenance or vacation rentals. Often called “rental car coverage” or “transportation expense coverage,” it is optional and requires an additional premium.

What does rental reimbursement typically cover?

Rental car reimbursement coverage helps you pay for a rental car, or for alternate transportation — such as bus fare or cab rides — but only if you need it because of a covered loss. When you can use rental reimbursement coverage depends on the other types of coverage you have on your car insurance policy.

For example, if you have collision coverage and you’re in a car accident, that is typically considered a covered loss. Your rental reimbursement coverage may help pay for transportation expenses while your vehicle is in the repair shop after the collision.

You can typically choose where to rent a vehicle, but some insurers partner with specific rental car companies. If you rent a vehicle from a company that has an agreement with your insurer, the rental car company may bill the insurance company directly, helping prevent you from paying out of pocket. If your rental company is not in your auto insurance company’s network, you’ll likely need to pay upfront for the rental car and then request reimbursement from your insurer.

If your car is damaged by hail, you’d need to have comprehensive coverage on your policy for your insurer to help cover the claim. Then, your rental reimbursement coverage may help cover the costs of your alternative transportation while your vehicle is in the shop to repair the hail damage.

Rental reimbursement coverage limits

Your insurance coverage is subject to limits, or the maximum amount your insurer will pay for a covered claim. Rental reimbursement coverage typically has a daily limit, and a maximum number of days it can be used. For example, your coverage may provide up to $30 per day for a maximum of 30 days, until your damaged car is usable again.

If the rental car you choose costs more or if you need to use it for longer, you’d have to pay out of pocket for the costs that exceed the limits. Read your policy so you know the limits of your rental reimbursement coverage before you need to use it.

Keep in mind that certain expenses may not be covered by rental reimbursement. For instance, the cost of gas is typically not included in rental reimbursement coverage.

Some insurers have direct billing options with some rental car companies. If you have a claim and need a rental car, let your claims representative know and they can review direct billing options. After a claim, receipts for rental car expenses may be submitted for reimbursement consideration subject to the terms of the policy.

How long will insurance pay for a rental car after an accident?

In most cases, you’ll have a daily limit for rental costs, an overall rental cost limit, and a total number of days that are eligible for rental car reimbursement. Exact coverage limits will vary by insurer, so it’s important to check for specific coverage information. With Progressive’s rental car reimbursement coverage, daily limits are typically $40–60 and coverage last up to a total of 30 days.

Who pays for a rental car after an accident?

If you carry rental reimbursement coverage, you can file a claim under your auto policy regardless of who caused the accident for possible payment under your policy.

If the other driver is at fault, their insurance may end up paying for your rental car. But using your collision and rental reimbursement coverage may be quicker and more convenient versus waiting for the other insurance company to complete their investigation.

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Comprehensive Car Insurance Coverage

Comprehensive car insurance typically covers what collision or liability car insurance doesn’t: damage from an incident that’s not a collision. Comprehensive car insurance will cover the costs if your windshield is broken or a tree falls on your car.

Below, you’ll find the answer to the question, what is comprehensive car insurance? You’ll also find key considerations to decide if you need comprehensive insurance and how much you should get. 

Comprehensive car insurance is sometimes called non-collision or “other than collision” coverage because it covers issues like fire, vandalism, or other damage that occurs when the vehicle isn’t in a collision, like damage from flooding, hailstorms, or fallen trees.

The notable exception to the no-collision part of comprehensive car insurance? If you have a run-in with wildlife, it’s usually covered under this type of insurance.

Car owners are generally not required to have comprehensive car insurance if they purchase the vehicle with cash. However, if you finance the vehicle with an auto loan or lease the vehicle, especially if you lease a car with bad credit, you will usually be required to have comprehensive car insurance.

On the other hand, purchasing comprehensive car insurance may not make sense if you drive an older vehicle that has already lost significant value.

Comprehensive vs. full coverage car insurance 

Full coverage car insurance is the solution if you want all-in-one vehicle insurance. Full coverage car insurance usually combines liability insurance, collision coverage, and comprehensive coverage. This option is best for newer vehicles or those who want the convenience of knowing their vehicle is protected in case of any issue. 

In most cases, if you want comprehensive insurance, full coverage car insurance is what you’re actually looking for. However, in some cases, it could make more financial sense to purchase these plans separately.

Comprehensive vs. liability car insurance

Liability car insurance protects you from liability in case you are involved in a car accident or accidentally harm another driver or vehicle. This financial protection means you can cover the repair, bodily injury, and medical expenses of those involved in the accident. Liability coverage insurance requirements are regulated at the state level in the U.S., but this coverage is mandatory in almost every state. 

While comprehensive car insurance protects you from expenses related to damage to your vehicle, liability car insurance protects you from financial responsibility in case you accidentally cause harm to others. 

Comprehensive vs. collision car coverage

Collision insurance covers expenses related to collisions, including a collision with an object, another vehicle, or a single-car rollover. It will not cover weather-related damage, natural disasters, or vandalism. That’s where comprehensive car insurance comes in.

However, neither comprehensive nor collision car insurance covers another person’s vehicle if you are in an accident. It also doesn’t cover medical bills from an accident.

Collision insurance is important to protect your vehicle from accidents beyond your control. Comprehensive insurance makes sense if you’re in a rural area or have a newer vehicle that could lose significant value from non-collision-related damage. 

How much is comprehensive car insurance?

How much comprehensive car insurance coverage you should purchase and how much it costs can vary widely. Factors affecting comprehensive car insurance costs include total coverage and location. Here’s how each of these factors plays into your premium.

Coverage limits. Insurance companies work on probability and total possible payouts to protect themselves. A higher coverage limit generally results in higher premiums. For example, premiums for $10,000 in coverage will cost less than $100,000 in coverage.

Additional coverages and add-ons. Optional auto coverage or add-ons such as roadside assistance, rental car reimbursement, or gap insurance could increase the overall cost of comprehensive car insurance. Consider how often you will use the add-ons and whether you can add them inexpensively as needed or through a different plan.

Deductible chosen. The deductible is the amount the auto policyholder must pay toward a claim before the auto insurance coverage kicks in. Choosing a higher deductible often results in a lower premium, while a lower deductible may lead to higher premiums. If you have some savings or cash reserves, you could use to cover the deductible amount, comprehensive car insurance could become more affordable, but you also risk paying more out of pocket without reaching beyond the deductible threshold.

Insurance Score. An insurance score for car insurance is a numerical rating used by insurance companies to assess the risk associated with insuring a particular individual or vehicle. This insurance score relates to the probability of accidents or payouts and may increase insurance premiums. Like a credit score, the higher your insurance score, the less likely you are to file a claim. With insurance scores, high-risk drivers may face higher monthly premiums.  

Credit history. In some jurisdictions, insurance companies may consider a driver’s credit history when determining insurance premiums. A poor credit history may result in higher premiums. However, if you have a low credit score, you can shop for auto insurers to find one that doesn’t consider this factor.

Age and driving experience. Inexperienced or young drivers tend to pay higher insurance premiums because of the higher risk associated with their age group. Statistically speaking, any age group or demographic more likely to be involved in an accident will face higher premiums as the frequency of insurance payouts increases.

Location. Location is one of the biggest factors in determining the cost of car insurance premiums. Areas with higher rates of accidents, thefts, or vandalism may result in higher premiums. If you move, you might notice your premium increasing or decreasing based on the new relative risk.

Driving record. Drivers with a history of accidents, traffic violations, or claims may face higher premiums as they are considered higher-risk individuals. That’s why some drivers pay out of pocket for repairs when possible to retain lower insurance premiums and focus on major repairs. Learn more about when not to file an insurance claim.

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Medical Payments Insurance Coverage

Medical payments coverage, or MedPay, handles your medical expenses if you’re injured in a car accident, regardless of who’s at fault. It’s your quick-pass to getting those hospital bills taken care of.

Medical payments coverage is part of an auto insurance policy. It may help pay your or your passengers’ medical expenses if you’re injured in a car accident, regardless of who caused the accident.

This coverage is usually optional and not available in all states.

Do you need medical payments coverage on a car insurance policy?

MedPay is an optional car insurance coverage in most states where it’s offered, so you probably aren’t legally required to carry it. However, it may make sense for you if you’re not sure you could afford to pay your medical bills after a car accident, let alone your passengers’.

If you have health insurance, MedPay can also help cover your out-of-pocket costs, such as your deductible. If you don’t have health insurance, you should definitely consider MedPay to give yourself peace of mind and potentially avoid the financial burden of major medical expenses.

Keep in mind that Med Pay isn’t offered in every state, though it’s available in most. States that don’t offer MedPay typically have personal injury protection (PIP) coverage available instead. Learn more about the car insurance your state offers and requires.

What does MedPay cover?

If you’re involved in an auto accident, medical payments coverage can take care of expenses such as:

• Doctor visits
• Hospital visits or stays
• Nursing services and care
• Ambulance and EMT fees
• Health insurance deductibles and co-pays
• Funeral expenses
• Surgery, X-rays, and dental procedures

How much medical payments coverage do I need?

MedPay limits typically range from $1,000 to $10,000, depending on the state and insurer. It’s generally a good idea to carry coverage equal to your health insurance deductible, so you can use MedPay to cover your out-of-pocket medical expenses. If you don’t have health insurance, you should consider carrying a higher MedPay limit to help pay your medical bills after an accident.

What are the limits of medical payments coverage?

Your MedPay coverage limit is the maximum amount your insurer will pay per person per accident for a covered loss. These limits often get discussed when first enrolling, and multiple options are typically available. Selecting the right limit is important because any amount owed for medical bills over the coverage limit will be your responsibility to pay.

If you need help choosing a coverage limit that fits your needs, you may want to think about the cost of short-term emergency medical expenses after a car accident.

For example, say you had to go to the emergency room with injuries after an accident. Your health insurance might pay for some of the ER visit, but your health coverage may require you to pay a $2,000 deductible and a co-insurance payment for the emergency medical services.

That’s where medical payments coverage on your car insurance policy may help. In the above scenario, if you had selected a coverage limit of $3,000, your medical payments insurance could help pay your health insurance deductible and some of your co-pay for your ER visit.

Many health insurance providers typically require you to pay a deductible or co-insurance payment up to 20% for emergency care. If you select medical payments coverage with a higher limit than your health insurance deductible, it can help cover your deductible and any remaining medical costs.

What’s the difference between liability coverage and medical payments coverage?

Medical payments coverage is usually optional. So, if you cause a car accident and don’t have medical payments coverage, you will have to pay out of your own pocket for your medical bills.

On the other hand, auto liability coverage is required by law in most states. Your auto liability coverage will not pay for your or your passengers’ medical bills after a car accident.

If you cause a car accident, the bodily injury liability portion of your car insurance coverage helps pay for the other party’s medical expenses. Likewise, if another driver is at fault for an accident that injures you, their auto liability coverage may help pay for your medical bills.

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Gap Insurance

Gap insurance covers the gap between the car’s value and what you owe on your loan or lease. If your car is totaled in a covered accident, your collision insurance will pay up to the car’s actual cash value. But if you’re financing a new car or leasing one, you might owe more on the loan or lease than the cash value of the car.

Depending on how much you still owe on your lease or loan, you might owe your lender thousands of dollars if your car is totaled. If you have gap insurance, you don’t have to worry about the financial strain of a large, unexpected bill.

If your car is totaled, you’ll probably want to buy a new one. But that can be hard to do when you’re still making payments on the totaled car. Gap insurance can pay off the rest of the loan so that you won’t personally owe the lender.

Most brand-new cars depreciate 20% in the first year. That depreciation may be greater if you rack up more miles than average or if your car has some damage. No matter how much your car depreciates, gap insurance ensures you’ll be able to pay your lease or loan.

How does gap insurance work?

Let’s say you just bought a brand-new car for $30,000, and it’s totaled in an accident when you still owe $20,000 on your car loan.

When you file a claim, your collision coverage will pay up to your car’s actual cash value at the time of the crash. New cars depreciate fast, so say your car’s value is $18,000.

The insurance company would pay your lender $18,000. But since you still owe $20,000 on your auto loan, you would need to come up with the remaining $2,000 on your own. However, if you have gap insurance, it would cover that $2,000.

How much does gap insurance cost?

That depends on where you get it. If you buy gap coverage at a dealership, you might be charged a flat rate of a few hundred dollars. However, if you add gap coverage to your existing car insurance, you might pay as little as $5 per month.

Uninsured or underinsured motorist coverage

Uninsured or underinsured motorist coverage protects you if you’re in an accident with a driver who has no insurance or insufficient coverage. It allows you to file a claim with your own insurer to cover injuries or property damage.

This coverage steps in if you’re hit by a driver with no insurance or not enough insurance. Uninsured or underinsured motorist coverage ensures you’re not left footing the bill for someone else’s mistake.

Uninsured motorist coverage protects you if you’re hit by a driver who has no auto insurance. Underinsured motorist coverage, which is usually offered alongside uninsured motorist coverage, protects you if you’re hit by a driver who doesn’t have enough coverage to pay for the damages or injuries they caused.

Both coverages are mandatory in many states and highly recommended for all drivers. If you’re a victim of a hit-and-run accident, you can file a claim against your uninsured motorist coverage.

Do I need uninsured motorist coverage? 

Not all states mandate uninsured motorist coverage, also known as UM coverage. However, even if UM coverage isn’t required in your state, you take a serious risk if you drive without it. Nearly 13% of drivers countrywide don’t have auto insurance. In some states, the number of uninsured drivers is over 20%.

Without uninsured motorist coverage, if you’re injured or your vehicle is damaged in an accident with an uninsured or underinsured driver, you could end up paying for medical bills or vehicle repairs out of your own pocket. 

In which states is uninsured/underinsured motorist coverage required?

While not all states mandate uninsured and underinsured motorist coverage (UM/UIM), around half require at least one of these coverages and some may only require you to purchase coverage for bodily injury. States that don’t require uninsured and underinsured motorist coverage may still offer the option to purchase it if it’s available.

For example, Illinois requires both uninsured and underinsured motorist coverage. In New Hampshire, car insurance is one of several ways to demonstrate financial responsibility, but if it’s purchased, the state requires both uninsured and underinsured motorist coverage to be included on every policy. Other states, like Massachusetts and South Carolina, only require uninsured motorist coverage.

Types of uninsured and underinsured motorist coverage

Like liability insurance, uninsured and underinsured motorist coverage breaks down into two coverage types: bodily injury and property damage.

Uninsured/underinsured motorist bodily injury coverage (UMBI/UIMBI)

Uninsured/underinsured motorist bodily injury is designed to cover you and the people in your car for medical bills, lost wages and pain and suffering if you’re in an accident caused by someone who doesn’t have insurance or enough insurance.

Medical payments (Med Pay) coverage or personal injury protection (PIP) may not be enough to keep drivers from needing UMBI or UIMBI. Keep in mind that if you’re injured by an uninsured driver, UMBI or UIMBI may offer higher limits than either of those.

Uninsured/underinsured motorist property damage coverage (UMPD/UIMPD)

Uninsured motorist property damage (UMPD) and underinsured motorist property damage (UIMPD) are designed to protect your car if someone hits you and doesn’t have insurance or enough insurance.

Say another driver causes a 3-car accident. The damage is significant, and the responsible driver is uninsured or has low limits. These coverages could help cover the remaining repairs, up to the policy limits. They could also help to cover a collision deductible, rental car costs or other out-of-pocket expenses.

In some states, these coverages are required and automatically included for each vehicle on the policy. In other states where coverages are available but not required, if you want it for all vehicles on your policy, you’ll need to add it separately for each.

How stacking works?

If you have more than one car on your policy you may be able to “stack” your uninsured and underinsured bodily injury coverage. Stacking is not allowed in every state.

When uninsured and underinsured motorists bodily injury coverage is stacked, your selected limit is multiplied by the number of cars.

Say you’re a Pennsylvania driver with UMBI limits of $50,000/$100,000. If you add a second car to your policy, stacking will increase your limits to $100,000 per person, $200,000 per accident.

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Roadside assistance coverage

Roadside assistance exists to help you out if your car gets stuck on the side of the road. You can use the coverage for a tow if your engine breaks down. Emergency roadside service also covers services like battery jump-starts, flat tire changes, fuel delivery, lockout assistance and more.

You can get stand-alone roadside assistance memberships from companies like AAA. Many people also get roadside assistance coverage from their car insurance company. Your manufacturer or extended car warranty may come with roadside coverage as well.

Roadside assistance most often applies to cars and trucks, but coverage can include RVs, motorcycles and bicycles depending on the provider.

What Does Roadside Assistance Cover?

Towing. Getting stuck on the side of the road is a hassle, and figuring out how to secure a tow truck can be a challenge in an unfamiliar area. All roadside assistance plans offer towing services for this situation — just call the number for your company and they’ll send a tow to your location. Some plans cover towing only to the nearest mechanic while others will tow your vehicle to a mechanic of your choice.

Battery Jump-Start. Perhaps all you need is a jump but there aren’t any neighborly travelers to help you out. Roadside assistance services can help by jump-starting your dead battery to get you back on the road.

Fuel Delivery. Running on fumes only works for so long. It’s disheartening to feel the engine sputter as you finally run out of gas. But with a roadside assistance plan, you can get fuel delivered to your location. Some plans provide a certain amount of fuel for free while others charge you for the fuel. If your car breaks down because you are low on other fluids like coolant or brake fluid, the roadside technician may be able to supply those as well.

Lockout Service. It’s a hassle to lock your keys in your car. But instead of looking up mobile locksmiths in your area, you can call your roadside assistance number and get one dispatched to your location.

Spare Tire Installation. Getting a flat tire can grind your road trip to a halt. Roadside assistance services cover a spare tire change to get you moving again. Note that this requires you to have your own spare tire — the roadside company won’t provide a spare for you to use.

How Much Does Roadside Assistance Cost?

How much roadside assistance costs depends largely on how you buy a plan. Insurance companies offer roadside assistance as an insurance add-on for as low as $10 to $20 per year, while auto clubs like AAA can cost about $70 to $150 per year. Roadside plans from insurance companies may have lower coverage limits than plans from auto clubs.

Either type of roadside plan can usually save you money if your vehicle breaks down. Without roadside assistance, you might pay $50 to $100 for a jump-start or spare tire installation out of pocket. And getting a tow could cost $100 to $200 depending on how far you are from a mechanic.

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AUTHORS: Written by Nataly Kramer. Fact checked by Oleg Parashchak – Editor-in-Chief at Beinsure Media