What Does Car Insurance Cover?

SR-22 insurance covers the cost of other people's injuries and property damage after accidents that you cause, and it does not cover damage to your own vehicle. If the court or state tells you that you need SR-22 insurance certification, your minimum coverage requirements are still the same as for any other resident.

SR-22 is actually the name of the form the court or state requires from drivers convicted of certain violations, such as DUI/DWIs, reckless driving, and driving without a license or insurance. The SR-22 must be filled in by your insurance company and certifies that you have the legally required coverage.

What SR-22 Insurance Covers Depending on State

Many states only require liability insurance. In these states, SR-22 insurance covers the costs of the other driver's injuries or property damage if you're at fault in an accident. Some states, like Florida and Michigan, also require Personal Injury Protection, which pays medical expenses for you and your passengers. States such as New Jersey and New York mandate uninsured or underinsured motorist protection, as well. This kind of insurance pays for your losses if another driver is at fault and either has no/low liability insurance or is a hit-and-run driver.

SR-22 Insurance Limits

Like all insurance, SR-22 insurance policies are written with limits. These limits are the maximum amounts the insurance company will pay out for losses. The coverage limits for your SR-22 insurance policy will follow the requirements of the state in which you were convicted or now live, whichever are higher.

Even though it's minimal, SR-22 coverage can be expensive. The violation you committed will put you into the insurance company's high-risk pool of drivers. This can raise your insurance costs 25% or more.

Yes, your car insurance covers rental cars, in most cases. Standard auto insurance policies cover car rentals in the U.S., up to your normal policy limits and with your regular deductible, but it's best to check the details of your car insurance policy to make sure you're aware of any specific rental car restrictions.

In addition, other policies, like health or home insurance, kick in for certain situations. Your health insurance will usually cover injuries resulting from a car crash, and home or renters policies cover items stolen from a car. Also, depending on the credit card you used to rent a car, you may be able to file a claim through it, too.

When Your Car Insurance Does Not Cover Rental Cars

Although every standard car insurance company has its own criteria for covering rental cars, a few situations are commonly excluded.

• Most insurers do not cover rental cars outside of the U.S., though you can buy specialty rental car or travel insurance to fulfill another country's insurance requirements.
• If you get into an accident, the rental car company may charge you for things that your insurance won't pay for, like loss-of-use or administrative fees.
• Many personal car insurance policies do not cover cars rented for business reasons
• Most companies have time limits, meaning that your insurance will cover a rental car for a few weeks or a month at most.
• If you carry full coverage, your insurance will only pay for the limits established by the value of your usual car, even if the rental car is worth more.

When to Buy Additional Rental Car Insurance

• You don't have your own car insurance policy.
• You have a personal insurance policy but want additional coverage.
• You are renting a car for business purposes.
• You are renting a car outside of the U.S.

Keep in mind that not every state requires rental car companies to automatically provide the minimum mandated insurance coverage. In California, for example, you need to carry a personal car insurance policy with liability coverage or purchase the rental car company's additional liability coverage in order to drive legally.

To learn more, check out WalletHub's full guide to rental car insurance.

Yes, car insurance covers theft if you have comprehensive coverage, which is optional. Comprehensive auto insurance can help replace your car if it's stolen or repair damage to your car resulting from break-ins or vandalism.

It is important to note that normal liability car insurance won't cover theft because it only protects other drivers from bodily injury and property damage resulting from an accident you cause.

What Insurance Covers If Your Car Is Stolen

• Your insurance company will pay your car's depreciated value, or actual cash value (ACV), minus your deductible, if you have comprehensive coverage.
• If your vehicle is financed and you owe more than your car is worth, gap insurance will cover the difference between your car's actual value and the balance owed.
• If you need help paying for transportation costs related to your car being stolen, rental reimbursement coverage will pay for a rental vehicle.

Car Insurance & Theft of Personal Items

Although comprehensive coverage will apply if your vehicle is stolen, no type of car insurance will cover theft of your personal items from your vehicle. Your phone, laptop, or other valuables should be listed on your homeowners or renters insurance policy, even if you often leave them in your car.

Next Steps

If your car is stolen, file a police report as soon as possible—ideally within 24 hours. Not only will this improve your chances of recovering the car, but you'll also need a police report to file a claim with your insurance provider. After you've filed a report, you should contact your insurer to start the claims process

Uninsured motorist insurance covers the same things as standard liability insurance: medical expenses and property damage after an accident. The main differences are that UM pays you (rather than other drivers in accidents you cause) and can only be used for accidents caused by a driver who does not have insurance.

What Uninsured Motorist Insurance Covers

Like liability insurance, uninsured motorist coverage will only pay up to the policy's limits. It is best to have uninsured motorist coverage limits that match the limits of your liability insurance policy, though higher limits are sometimes available.

Also, if you get into an accident caused by a driver who has insurance but not high enough limits to cover all of your vehicle damage and medical costs, you'd need to use underinsured motorist coverage instead.

To learn more, check out WalletHub's guide to uninsured motorist insurance.

Full coverage car insurance covers damage to your vehicle, others' medical bills, and repairs to others' property, and it may cover accidents with uninsured motorists and medical expenses for you and your passengers. Full coverage includes the car insurance required by your state, plus collision and comprehensive insurance.

What Common Components of Full Coverage Car Insurance Cover

Example of How Full Coverage Insurance Works

Full coverage insurance covers expenses for both you and other drivers if you are at fault in an accident, since it includes liability insurance as well as other types of coverage like collision insurance and personal injury protection.

For instance, let's say Driver A has a full coverage policy and causes an accident that damages Driver A's car as well as Driver B's vehicle. Since Driver A is at fault, their property damage liability insurance will cover the cost to repair Driver B's vehicle, up to Driver A's preset policy limits. Since Driver A has full coverage, Driver A's vehicle damage would be covered by their own collision insurance, minus any deductible.

Full Coverage Varies by State

Since some states require more types of coverage than others, the exact standards for “full coverage” insurance differ. Most states require all drivers to have a minimum amount of liability insurance, but some states have requirements for personal injury protection or MedPay, too. Some also require a specified amount of uninsured/underinsured motorist coverage.

To learn more, check out WalletHub's guide to full coverage insurance.

No, if your car breaks down, insurance will not cover a rental car unless you have rental reimbursement coverage and the breakdown was the result of something covered by comprehensive or collision insurance. If the breakdown was the result of an underlying mechanical issue, your rental coverage will not apply.

Even if you don't have rental reimbursement coverage with your car insurance company, you may be able to get it through an extended warranty. Extended warranties are service contracts that cover repair costs if your vehicle suffers a major mechanical failure. In addition to the breakdown coverage, extended warranty providers often include rental reimbursement coverage in their contracts. Extended warranties are usually not available from insurance companies, so you'll need to purchase one from either a third-party company or your car's manufacturer.

To learn more, check out WalletHub's guides to rental reimbursement coverage and extended car warranties.

No, traditional car insurance does not cover ordinary repairs or maintenance to your car. If your car is covered by comprehensive insurance, your insurance company will cover mechanical repairs caused by a car accident, natural disasters, or other unforeseeable events.

Insurance companies do offer a type of coverage that policy holders can use for repairs. This coverage is called mechanical breakdown insurance (MBI), or repair insurance. MBI is offered by some insurance companies and comes with a deductible. MBI deductibles tend to be low, and in the event your car needs major mechanical repairs, this type of coverage could save you thousands of dollars. It usually covers repairs to your vehicle's engine, drivetrain, transmission, brakes, exhaust and power system.

With many policies, MBI coverage cannot be used for car maintenance, or for tire replacement, coolant replacement or other minor repairs. It's also important to keep in mind that some insurance companies that offer MBI only do so for newer models and vehicles under a certain mileage.

If you're considering purchasing MBI coverage, it's a good idea to carefully read the provider's policy in order to understand required qualifications for and limitations of the offered coverage.

Bodily injury liability insurance covers other drivers' medical expenses if they are injured in a car accident that you cause. Bodily injury liability insurance can pay for things like another driver's emergency care, hospital fees, and even lost wages after an accident you're at fault for.

Although bodily injury liability won't cover your own injuries or associated costs, it can cover your legal fees if you are sued because of an at-fault accident. However, in no-fault states, there may be limits to when drivers are able to sue after an accident.

What Bodily Injury Liability Covers

• Emergency care, like ambulance costs and emergency room fees
• Hospital fees, such as surgery expenses or doctor visits
• Pain and suffering, including emotional distress
• Loss of income
• Childcare and homecare
• Equipment costs associated with the injuries, like crutches or wheelchairs
• Funeral expenses
• The policyholder's legal fees

What Bodily Injury Liability Does Not Cover

• The policyholder's injuries and medical expenses
• Damage to property, such as vehicles or stationary objects
• The policyholder's lost wages, home aid, or other peripheral costs

Bodily injury liability insurance is required in almost every state. Regardless of how much coverage your state requires, you should always purchase as much as you can comfortably afford in order to protect both your own finances and other drivers on the road.

To learn more, check out WalletHub's guide to bodily injury liability insurance.

Yes, car insurance covers hail damage if you carry comprehensive insurance coverage. If you have a liability-only car insurance policy, hail damage won't be covered. Liability insurance only pays for injuries or property damage you cause in an accident and is almost always required by law. Comprehensive car insurance is optional coverage for damage caused by anything other than a collision, like natural disasters and other events outside your control, including theft, vandalism, wildlife, and weather events.

Glass claims, such as damage to your car's windshield, are also covered by comprehensive insurance. The cost of glass repair and replacement is typically less than the cost of a comprehensive deductible, which is most commonly $500 or $1,000. A windshield repair or replacement averages between $100-$400. So, to encourage drivers to fix glass issues that can become serious hazards, many insurers waive the deductible for windshield claims. In some states, $0 deductible glass coverage is required by law. Consult your agent or policy to see if your deductible applies to windshield damage caused by hail.

Should I claim hail damage on my car?

Whether or not you should file a car insurance claim for hail damage depends on the extent of the damage and the cost of your deductible. The average hailstorm claim is around $3,000, and the most common comprehensive deductible is $500 or $1,000. But hail damage may not be much greater than the cost of your deductible.

Let's say you have a $1,000 deductible and a repair estimate for $1,500. Ultimately, your insurance company is only going to pay $500 of the bill. It could be more efficient to pay the whole bill yourself and avoid dealing with the insurance company altogether, especially if you've had other recent claims.

Does a hail-damage claim raise insurance rates?

If you make a hail-damage claim, it will go on your insurance record. Claim frequency does affect how much you pay for car insurance, but one comprehensive claim usually won't raise your rate. That's because insurers consider claims covered by comprehensive insurance to be beyond your control. If you haven't had any other claims in the last three to five years, you shouldn't see a rate hike, but your premium may go up if you have.

No, liability insurance does not cover a stolen car. Liability insurance covers damage that you cause to other people or their property in an auto accident that's your fault, but it does not cover damage caused by a car if it's involved in an accident after being stolen. However, if you want to make sure your car is protected in the event it's stolen, comprehensive coverage will pay to repair or replace a car that's damaged or unrecovered because of theft.

Also, the owner of a stolen car won't be responsible for damage caused by their car if it's taken without their permission. Common law in the U.S. states that an owner of a stolen car won't be held liable for any property damage or injuries caused by an accident that the stolen vehicle was involved in.