BODILY INJURY & PROPERTY DAMAGE (BI/PD)
Liability coverage pays for the damage you do to others. It’s written as three numbers, such as 50/100/50. That translates to $50,000 in bodily injury coverage per person, $100,000 in bodily injury coverage per accident and $50,000 in property-damage coverage per accident.
It also pays for your legal bills if you cause an accident. It also pays to repair or replace property that you destroy. This includes other cars or property, such as fences.
Liability insurance has no deductible.
COMPREHENSIVE & COLLISION
Unlike property-damage liability, collision coverage pays to repair your own vehicle in the event of an accident. Your collision claim check will be reduced by the amount of your collision deductible.
Comprehensive coverage pays for damage to your car that isn't due to car accidents. That includes theft, fire, vandalism, natural disasters and collisions with animals (such as hitting a deer)
UNINSURED/UNDERINSURED MOTORIST (UM/UIM)
Uninsured motorists (UM) coverage pays for your medical bills if an uninsured driver strikes your car or if you're a victim of a hit-and-run.
Similarly, underinsured motorists (UIM) coverage kicks in when someone causes an accident but doesn't have enough insurance to cover all medical bills. In that case, the at-fault person's insurance pays out to its maximum and then your UIM coverage pays for the remaining bills, up to your own limit.
CAR INSURANCE EXTRAS
A variety of extras are available.
Rental reimbursement pays for a rental car when your vehicle is damaged or stolen. Check for the per-day dollar limits and overall maximum to make sure you're getting a good value for your premium dollar.
Towing and roadside assistance coverage pays for fees due to vehicle breakdowns.
Gap insurance for a new vehicle pays the difference between the actual cash value of the vehicle and the amount left on your car loan if your vehicle is totaled.