Auto insurance provides financial protection against vehicle-related losses, including accidents, theft, and liability claims. It typically includes liability coverage (for injuries or property damage to others), collision coverage (for damage to your own vehicle in an accident), comprehensive coverage (for non-collision incidents like theft or weather damage), and personal injury protection (PIP) or medical payments coverage (for medical expenses).
Pursuant to your particular policy language, coverage provisions, and exclusions; auto policies can include coverage for:
A Personal Auto Policy (PAP) provides financial protection for drivers against various risks, including accidents, liability claims, and vehicle damage. Below are the key coverages typically included in a PAP:
Bodily Injury Liability (BI) – Covers medical expenses, lost wages, and legal fees if you injure someone in an accident.
Property Damage Liability (PD) – Pays for damages you cause to another person’s vehicle or property (e.g., a fence, building). Does not cover your own vehicle or injuries.
Collision Coverage – Covers damage to your vehicle from a collision, regardless of fault. Pays up to the actual cash value (ACV) of your car, minus the deductible.
Comprehensive Coverage – Covers non-collision damages, such as theft, vandalism, fire, floods, hail, and other natural disasters. Pays up to the ACV minus the deductible.
Uninsured/Underinsured Motorist Coverage (UM/UIM) – Protects you if you’re in an accident caused by a driver with no insurance or not enough insurance. Covers medical expenses and, in some cases, damage to your vehicle.
Medical Payments (MedPay) / Personal Injury Protection (PIP) – Covers medical expenses for you and your passengers, regardless of fault. PIP may also cover lost wages, rehabilitation, and funeral expenses. MedPay covers only medical costs and is more limited than PIP.
John has a Personal Auto Policy (PAP) with the following coverages:
John is driving home from work when traffic suddenly stops. He brakes in time, but the driver behind him fails to stop and rear-ends his car at full speed. John’s bumper, trunk, and taillights are severely damaged, and he experiences neck pain from whiplash.
John checks for injuries and calls 911 to report the accident. He exchanges insurance and contact information with the at-fault driver. He takes photos of the damage and gets a copy of the police report.
How Auto Insurance Helps:
The at-fault driver’s insurance is supposed to pay for John’s vehicle damage and medical expenses. However, the at-fault driver has no insurance, so John must use his Uninsured Motorist (UM) coverage.
John’s UM property damage coverage pays for his car repairs, covering the full cost of $6,000. John’s UM bodily injury coverage pays for his $3,500 in medical bills. His MedPay coverage also helps cover his initial medical expenses.
Contact CastleWise to discuss Auto insurance coverage.
