Car insurance protects you financially if you’re responsible for an accident. It helps cover the costs of injuries or property damage you cause to others. Depending on your policy, it can also help repair or replace your vehicle.

Car insurance is made up of different types of protection that work together to cover you, your car, and others on the road. Here’s what each one does:

• Liability Coverage

Covers injuries or property damage you cause to others in an accident. This is required in most states and forms the foundation of your policy.

• Collision Coverage

Pays to repair or replace your own vehicle if it’s damaged in a crash — whether you hit another car or an object like a pole or guardrail.

• Comprehensive Coverage

Protects your car from non-collision events, including theft, vandalism, fire, flooding, and weather- or animal-related damage.

• Uninsured/Underinsured Motorist Coverage

Covers you and your passengers if you’re hit by someone who has no insurance or not enough to pay for the damages.

• Personal Injury Protection (PIP) or Medical Payments (MedPay)

Helps cover medical expenses for you and your passengers after an accident, regardless of who’s at fault.

• Optional Add-Ons

You can also add extras such as roadside assistance, rental car reimbursement, or gap insurance for more complete protection.

Insurers use many factors to determine your rate, including your driving history, vehicle type, location, credit score, and coverage level. Each company weighs these factors differently, which is why rates vary, and it’s important to shop around. Using a comparison tool like our partner Savvy helps you find the best value without the extra legwork.

Your age, driving record, credit score, level of education, ZIP code, and even how much you drive can influence your premium. Improving these over time can help you qualify for better rates.

Your deductible is the amount you pay before your insurance kicks in. A higher deductible can lower your monthly rate, but it also means you’ll pay more if something happens.

For example, if you have a $500 deductible and $2,000 in damage, you pay the first $500 and your insurer pays the remaining $1,500. 

Pick an amount you’d feel comfortable paying out of pocket after an accident.