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
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.
Property Damage Liability: This coverage pays for damage to other cars, or any structure or stationary object, caused by the policyholder’s vehicle.
Comprehensive: This coverage pays for non-collision damage to a vehicle. This includes damage caused by fires, floods, natural disasters, theft, and animals.
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.
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.
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.
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.
The five types of car insurance are liability, comprehensive, collision, uninsured/underinsured motorist, and personal injury protection/medical payments. These are the most common types of car insurance, though many insurance companies sell other types of coverage as well, like gap insurance and rental reimbursement.
Cover the policyholder’s medical expenses after an accident, regardless of fault.
Liability insurance is required in nearly every state, and some states also require additional coverage like PIP and uninsured/underinsured motorist insurance. There are no states that require comprehensive or collision insurance, but those types of insurance are usually mandatory for vehicles that are leased or financed.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub.
Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.