What are the seven types of auto insurance?

The seven types of auto insurance are bodily injury liability, property damage liability, comprehensive, collision, uninsured/underinsured motorist, personal injury protection (PIP), and medical payments (MedPay). These seven types of car insurance are the kinds of coverage most commonly required by states and lenders. Drivers can also purchase other forms of coverage like gap insurance and mechanical breakdown insurance.

7 Types of Car Insurance 

1. Bodily Injury Liability: This coverage pays for the victim’s medical bills and lost wages and can also cover legal fees if the at-fault driver is sued.
2. Property Damage Liability: This coverage pays for damage to other cars, or any structure or stationary object, caused by the policyholder’s vehicle.
3. Comprehensive: This coverage pays for non-collision damage to a vehicle. This includes damage caused by fires, floods, natural disasters, theft, and animals.
4. Collision: This coverage pays to help repair or replace the covered vehicle after a collision. Collision insurance will cover collisions with cars, trees, fences, or other objects.
5. Uninsured/Underinsured Motorist: This coverage pays for the policyholder’s expenses after an accident caused by a driver who either does not have insurance or does not have enough insurance to cover the policyholder’s bills.
6. Personal Injury Protection (PIP): This coverage pays for expenses like medical bills, legal fees, and lost wages when you are in an accident, regardless of who is at fault. PIP is sometimes called “no-fault insurance” and is mostly required in no-fault insurance.
7. Medical Payments (MedPay): This coverage pays for medical expenses when a car accident results in injuries to the policyholder, their passengers, or other drivers listed on their policy.

To learn more, check out WalletHub's guide to the different types of car insurance.