What types of car insurance coverage exist?

The core types are liability (bodily injury and property damage), collision, comprehensive, uninsured/underinsured motorist, personal injury protection (PIP), and medical payments. Optional add-ons include gap insurance and roadside assistance.

Which coverages are required by law?

Nearly every state requires liability coverage. Some also mandate PIP, medical payments, or uninsured motorist coverage. Collision and comprehensive are optional unless a lender requires them on a financed vehicle.

How do I choose the right coverage?

Start with your state's minimums, then factor in your vehicle's value, your loan balance if any, and how much out-of-pocket risk you can absorb. Newer or financed vehicles usually benefit from collision and comprehensive.

Auto Insurance Coverage Types: A Complete Guide

June 29, 2026

What auto insurance coverage actually does

Every auto insurance policy is built from individual coverages, each designed to pay for a specific category of loss. Understanding what each one does — and what it doesn't — helps you build a policy that actually protects you.

Coverages explained in this section

Each page below covers one type in detail: who needs it, what it pays for, how much it costs, and when to consider dropping or adding it.

The two categories: liability vs. physical damage

Most auto coverages fall into one of two buckets:

Liability coverages pay for harm you cause to other people and their property. They don't pay for your own car or your own injuries.
Physical damage coverages (collision and comprehensive) pay to repair or replace your own vehicle.

Everything else — PIP, MedPay, uninsured motorist, gap, roadside — fills in gaps that neither bucket covers.

Which coverages are required?

Liability coverage is the baseline legal requirement in nearly every state. Beyond that, requirements differ. States like Florida and Michigan require PIP; others require uninsured motorist coverage. Check the State Rules section to see what your state mandates.

If you're financing or leasing a vehicle, your lender will almost certainly require collision and comprehensive on top of state minimums.

Frequently Asked Questions

What types of car insurance coverage exist?: The core types are liability (bodily injury and property damage), collision, comprehensive, uninsured/underinsured motorist, personal injury protection (PIP), and medical payments. Optional add-ons include gap insurance and roadside assistance.
Which coverages are required by law?: Nearly every state requires liability coverage. Some also mandate PIP, medical payments, or uninsured motorist coverage. Collision and comprehensive are optional unless a lender requires them on a financed vehicle.
How do I choose the right coverage?: Start with your state's minimums, then factor in your vehicle's value, your loan balance if any, and how much out-of-pocket risk you can absorb. Newer or financed vehicles usually benefit from collision and comprehensive.