| Insurance Type | What It Covers | Why It’s Important |
|---|---|---|
| Liability Insurance | Damage and injuries you cause to others | Meets legal requirements and protects your finances |
| Collision Insurance | Repairs to your car after an accident | Helps pay for vehicle repairs regardless of fault |
| Comprehensive Insurance | Theft, vandalism, fire, weather, non-collision damage | Protects against unexpected events beyond accidents |
| Personal Injury Protection (PIP) | Medical expenses for you and passengers | Covers medical costs regardless of fault |
| Uninsured / Underinsured Motorist | Accidents caused by uninsured drivers | Protects you when the other driver lacks coverage |
| Gap Insurance | Difference between car value and loan balance | Prevents financial loss on leased or financed vehicles |
In most regions, at least basic liability car insurance is legally required to drive. The exact requirements vary by location, but driving without insurance can result in fines, license suspension, or legal penalties.
Standard coverage includes liability for third-party damage, vehicle repair or replacement, medical expenses, and protection against theft or non-collision damage, depending on the policy.
Collision coverage pays for damage to your vehicle after an accident with another car or object. Comprehensive coverage applies to non-collision events such as theft, vandalism, fire, weather damage, or animal-related incidents.