Auto Insurance Coverage Options: All Twelve Lines, and Which Ones Pay in Real Accidents
A car policy is twelve separately priced coverages on one bill. Most people know four of them. Here is what each line pays, who it pays, what it costs, and which ones respond in five accidents that actually happen.
- Published
- Read
- 10 min
- 12
- Separately priced coverages
- 3
- That are genuinely non-negotiable
- $0
- Paid to you by liability coverage, ever
§On this page(10)
- 01All twelve, in one table
- 02The three that are not optional
- 031. Liability, at limits that reflect real medical costs
- 042. Uninsured and underinsured motorist
- 053. Physical damage on a car you could not replace in cash
- 06Which coverage responds. Five real accidents
- 07MedPay and PIP: not the same product
- 08The cheap add-ons worth having, and the one to check twice
- 09Building the policy, in order
- 10Frequently asked questions
Almost every explanation of auto insurance coverage makes the same structural mistake: it lists liability, collision and comprehensive, calls the job done, and leaves you believing a policy has three parts. A policy has about twelve, they are priced separately, and the ones people have never heard of are frequently the ones that decide whether a bad week costs $500 or $9,000.
Worse, the three everybody does know are routinely misunderstood in one specific way. Liability coverage never pays you a cent. It pays other people, for what you did to them. If you believe your liability limits protect your car, your policy contains a hole exactly the size of your car, and that is the most common single misunderstanding in personal insurance.
All twelve, in one table
Read the who it pays column first. That single column resolves most confusion about auto insurance, because the policy is really two policies stapled together. One that protects other people from you, and one that protects your own property and body.
| Coverage | What it pays for | Who it pays | Typical annual cost |
|---|---|---|---|
| Bodily injury liability | Injuries you cause to other people | Them | $280–620 at 100/300 |
| Property damage liability | Damage you cause to their car or property | Them | $110–240 at $100k |
| Collision | Your car, in a crash, regardless of fault | You | $290–620 at $500 deductible |
| Comprehensive | Your car. Theft, weather, fire, vandalism, animals, falling objects | You | $140–320 at $500 deductible |
| Uninsured / underinsured motorist | Your injuries when the at-fault driver has no cover or too little | You | $60–160 |
| UM property damage | Your car when an uninsured driver hits it | You | $20–60, not available everywhere |
| Medical payments (MedPay) | Medical bills for you and your passengers, no fault question | You | $25–70 at $5,000 |
| Personal injury protection (PIP) | Medical, lost wages, sometimes household help | You | $120–450, mandatory in no-fault states |
| Gap / loan-lease payoff | The shortfall between payout and loan balance | Your lender | $40–90 |
| Rental reimbursement | A hire car while yours is repaired | You | $28–80 |
| Roadside assistance | Tow, jump start, lockout, flat | You | $12–25 |
| Full glass / custom equipment | Windscreen without deductible; aftermarket parts | You | $15–60 |
Costs are typical ranges for a clean-record driver on a mid-value vehicle in a mid-cost state. Availability varies: PIP is mandatory in no-fault states and unavailable in some others, UM property damage exists in roughly half of states, and full glass is regulated separately in Florida, Kentucky and South Carolina.
The three that are not optional
1. Liability, at limits that reflect real medical costs
Written as three numbers, 100/300/100 means $100,000 per injured person, $300,000 per accident, $100,000 for property. Above those figures, the claim does not stop. It becomes a judgment against you, and in most states a judgment can reach wages and assets for years.
2. Uninsured and underinsured motorist
UM/UIM pays your injuries when the at-fault driver has no insurance, not enough, or leaves the scene. Roughly one driver in seven nationally carries nothing at all, and in the worst states it approaches one in four. Many of the insured, meanwhile, carry state minimums, which is precisely what underinsured addresses.
It costs $60 to $160 a year. It is optional in many states, and it is the coverage most quietly omitted from a cheap quote, because deleting it improves the price without changing the marketing description of the policy.
3. Physical damage on a car you could not replace in cash
Collision and comprehensive are the only two lines that pay for your vehicle. The test for whether you need them is not the car's age or a rule of thumb, it is one question: if this car were destroyed tonight, could you replace it from savings without disruption? If not, you need both, whatever the car is worth.
Which coverage responds. Five real accidents
This is the table that makes the stack make sense. Each row is a situation that happens constantly; the columns show which line of the policy pays, and where the hole is if that line is missing.
| What happened | Coverage that pays | If you don't have it |
|---|---|---|
| You rear-end someone. Their car $9,400, their neck injury $22,000. | Property damage liability + bodily injury liability | The claim comes to you personally, above your limits |
| Same accident, your car has $6,800 of damage. | Collision, minus your deductible | You pay $6,800. Liability paid them, not you. |
| Hail wrecks the roof and bonnet, $5,200. | Comprehensive, minus deductible | You pay $5,200. Collision does not cover weather. |
| An uninsured driver runs a light, breaks your wrist, totals your car. | UM bodily injury; UM property damage or collision for the car | Your injuries are yours to fund; their insurer does not exist |
| Your financed car totals. Payout $18,600, loan balance $22,900. | Gap / loan-lease payoff | You owe $4,300 on a car you no longer have |
| Repair takes 31 days. Hire car at $42/day. | Rental reimbursement | $1,302 out of pocket while paying your own premium |
Note rows 1 and 2. The same accident, two different coverages, and the second one is the one people assume is included in the first. It is not, and this is the single most expensive misunderstanding on the list.
MedPay and PIP: not the same product
Both pay medical costs for you and your passengers regardless of fault, and that is where the similarity ends.
| MedPay | PIP | |
|---|---|---|
| Covers medical bills | Yes | Yes |
| Covers lost wages | No | Yes, typically 60–80% |
| Covers household services / childcare | No | Often yes |
| Typical limits | $1,000–$25,000 | $10,000–unlimited by state |
| Where available | Most tort states, optional | Mandatory in no-fault states |
| Typical annual cost | $25–70 | $120–450 |
| Pays before health insurance | Usually yes | Usually yes, and coordinates by election |
In a no-fault state you generally have no choice about PIP, but you often do have a choice about the deductible and whether it coordinates with your health plan. An election that can cut the premium substantially if you have good health cover, and should be reviewed rather than left at default.
The cheap add-ons worth having, and the one to check twice
- Gap / loan-lease payoff, $40–90. New cars depreciate faster than loans amortise; being underwater in years one to three is normal, not unlucky.
- Rental reimbursement at $50/day for 30 days, $55–80. Repair timelines have not returned to pre-2020 norms, and this is one of the few coverages nothing else duplicates.
- Full glass, $15–40. A $480 windscreen against a $500 deductible is a claim not worth filing, unless the deductible is waived.
- UM property damage where available, $20–60. Covers your car against an uninsured driver without touching your collision deductible or claim record.
- Roadside assistance, $12–25. Frequently duplicates a motoring club membership, a credit card benefit or a new-car warranty. Check before buying it a second time.
- Custom equipment, unless you actually have aftermarket wheels, audio or a lift kit. The standard policy caps aftermarket parts at a low figure, so it matters only if that figure is below your build.
- Accident forgiveness sold as an add-on rather than earned by tenure. Read what it forgives; several versions only waive the first surcharge and only after five claim-free years you already had.
- Very high MedPay limits if you have strong health insurance. Coverage above $10,000 mostly duplicates cover you are already paying for.
VerdictGap, rental and glass together cost about $150 a year and close three gaps that routinely cost thousands. Roadside is the one to check against what you already hold. Everything else here is situational, buy it if the situation is yours, not because it was on the quote.
Building the policy, in order
Six decisions, in the order that makes them easy
Set liability limits first, from your net worth
Not from the state minimum and not from the premium. 100/300/100 is the practical floor for a household with any assets or income to protect. If net worth exceeds roughly $300,000, add a $1M umbrella at $150–350 a year rather than pushing auto limits higher. It is cheaper per dollar of protection and extends beyond the car.
Match uninsured motorist to your liability limits
There is no logic to protecting strangers from you at $100,000 and yourself from them at $25,000. Match them; the incremental premium is small.
Decide physical damage with the 10% test
Annual collision-plus-comprehensive premium divided by (value minus deductible). Above 10%, consider dropping. Below 6%, keep. Financed or leased means keep, no calculation needed.
Set the deductible to what is actually in the account
Not to what you hope to save. A deductible you cannot fund on the day is not a discount, it is a car sitting at a body shop you cannot collect from.
Add gap if the loan balance exceeds the car's value
Check today: current payoff figure against a valuation from any pricing guide. If payoff is higher, you need gap coverage this week. If you are more than three years into a five-year loan you probably do not.
Add rental and glass, then check roadside against what you have
Rental at a realistic daily rate for 30 days, glass if your state does not already mandate a zero deductible. Then look at your credit cards and motoring club before adding roadside.
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Once the coverage is right, see which discounts bring the price down
The coverage audit, in ten minutes
- Liability at 100/300/100 or higher
- Umbrella policy considered if net worth exceeds $300,000
- UM/UIM present, at limits matching liability
- Collision and comprehensive present on any car you could not replace in cash
- Deductible equal to an amount currently in the bank
- Gap coverage present if the loan payoff exceeds the car's value
- Rental reimbursement at a realistic daily rate for 30 days
- MedPay considered if you carry a high-deductible health plan
- Roadside checked against cards and motoring club before buying
The policy is two policies. One protects other people from you, and one protects you from everything else. Almost every expensive surprise comes from believing you bought the second when you only bought the first.
Frequently asked questions
- Does liability insurance cover damage to my own car?
- No, never. Liability pays other people for what you did to them. Damage to your own vehicle is covered by collision (crashes) and comprehensive (theft, weather, fire, vandalism, animals). This is the single most common misunderstanding about auto insurance, and it is how drivers end up with a valuable car and no coverage on it.
- What is the difference between collision and comprehensive?
- Collision covers your car when it hits something or something hits it, regardless of fault. Comprehensive covers everything else that damages it without a collision, theft, hail, flood, fire, vandalism, falling branches, animal strikes. They are priced separately, and comprehensive is usually the cheaper of the two.
- Do I really need uninsured motorist coverage?
- In most places, yes. Roughly one driver in seven nationally carries no insurance, and many insured drivers carry only state minimums. UM/UIM pays your injuries when they cannot, costs $60–160 a year, and is the coverage most often quietly missing from a cheap quote.
- What is gap insurance and do I need it?
- Gap coverage pays the difference between your car's insured value and what you still owe on the loan or lease. Check it today: get your payoff figure and a valuation. If the payoff is higher, you need it, and being underwater in the first two or three years of a new-car loan is normal, not unusual. It costs $40–90 a year and closes a shortfall that averages several thousand dollars.
- Is MedPay worth buying if I already have health insurance?
- Often yes, particularly on a high-deductible health plan. At $25–70 a year for $5,000, MedPay pays deductibles and co-pays immediately with no fault determination, and it covers your passengers, whose health cover you do not control. Above about $10,000 of limit it starts duplicating good health insurance, so keep the limit modest.
- Which coverages can I safely drop to save money?
- Roadside assistance if you already have it through a card or motoring club; custom equipment if your car has no aftermarket parts; and collision plus comprehensive on a low-value car you could replace in cash, once the 10% test says so. Never drop liability to the state minimum or delete uninsured motorist, those two are price reductions that transfer uncapped risk to you.
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