Under Collision coverage, an insurer pays for damages if your vehicle overturns or if it collides with another vehicle or object. Collision coverage involves a deductible amount you select when you buy your policy. The deductible, usually $250 or $500, is the amount you are required to pay before the insurance company starts to pay on a covered claim. Under Comprehensive coverage, an insurer pays for damage caused by an event other than a car collision, such as fire, theft, vandalism, hail, or flood damage. Comprehensive also covers damages that result from a collision with an animal. Like Collision coverage, a deductible usually applies.
Loan/Lease Payoff coverage helps protect you when your covered vehicle has been deemed a total loss and you owe a lender more money than the vehicle is worth. If you buy Loan/Lease Payoff and your vehicle is declared a total loss, Loan/Lease Payoff can pay the difference between the vehicle's actual cash value and the amount you owe to the lender. Medical Payments coverage applies no matter who is at fault and covers the cost of reasonable and necessary medical care provided to you as the result of a car accident. The coverage is often limited to a specified time period following the accident and is subject to the "limits" of coverage you chose when you bought the policy. Personal Injury Protection (PIP) coverage, commonly referred to as "no-fault insurance," is available in certain states. If you are disabled or unable to work as a result of an accident, PIP covers your medical bills and often lost wages. And, it usually covers the cost of personal services you must now pay someone else to do for you. PIP coverage is subject to certain limits available where it is offered. If you buy Rental Reimbursement coverage, the insurance company will reimburse you for rental car charges you incur while your damage to your vehicle as a result of an accident is being repaired. There is usually a limit on the number of days you can receive a rental car, as well as a dollar limit per day. Uninsured/Underinsured Motorist coverage pays for damages that you are legally entitled to recover for your bodily injury. This coverage provides what you would have received from the other person's insurance company had that person been insured. This coverage may also protect you if the person who caused the damage does not have enough insurance.
Bodily Injury and Property Damage (BI/PD) liability covers your legal liability, up to the limits you chose when you bought your policy, for damages caused in a covered vehicle accident. Under BI/PD, an insurer pays for damages to an injured person and for property damage that you are legally obligated to pay as a result of an accident. If the insurance company covers an accident for which you are sued, the insurance company may pay for a lawyer to defend you.