How To Save Money on Car Insurance
Learn effective ways to save money on car insurance. Read about tips to reduce your car insurance without compromising your coverage.
What Does Car Insurance Cover?
by COUNTRY Financial
Car insurance is a vital component of responsible vehicle ownership, offering financial protection in the event of unexpected incidents. At COUNTRY Financial, we understand the importance of knowing exactly what your auto insurance covers. In this comprehensive guide, we delve into the various types of car insurance coverage, shedding light on what is included and helping you navigate the intricacies of auto insurance.
Understanding what your car insurance covers is crucial for navigating the unpredictable world of driving. While each state has its minimum requirements, knowing the scenarios your insurance might cover beyond the basics is essential. Let's explore additional situations where your auto insurance could come to the rescue.
Get a car insurance quote
Find out more about car insurance.
Your insurance agent is there to help
Find out more about car insurance.
Required car insurance coverage
Drivers in all 50 states are required to have minimum levels of car insurance. In almost all states, you can't legally drive without it.
The tricky part, though, is that each state requires different types and amounts of coverage. Search for your state's Departmen of Public Safety (DPS) or Department of Motor Vehicles (DMV) website (make sure it ends in ".gov") to see what's required for you.
One coverage that almost all states require is liability insurance, which covers expenses resulting from accidents you cause. It covers medical expenses for the other party and property damage but doesn't extend to your own vehicle.
The different types of auto insurance
Liability coverage
Liability coverage is a fundamental aspect of car insurance coverage. It protects you if you are at fault in an accident, covering the costs of property damage and bodily injuries sustained by others.
Comprehensive coverage
Comprehensive coverage protects from damage caused by non collision-related events. Think of it as coverage for events beyond your control, including:
- Theft
- Vandalism
- Falling objects
- Natural disasters (hail, flooding, tornadoes or high winds, etc.)
- Encounters with animals (striking a deer, damage from rodents, etc.)
Collision coverage
Collision insurance does exactly what its name implies: it helps ensure you're financially protected from just about any collision.
This includes collisions with another car, in which case you're protected regardless of who caused the accident; as well as collisions where you're the only driver—if you back into a mailbox or hit a tree, for example. It'll even cover you swerving and rolling your car.
Underinsured and uninsured motorist coverage
If you're ever in an accident with a driver who has little to no car insurance, underinsured and uninsured motorist coverage protect you from paying thousands to repair your own car.
They're two separate coverage types:
- Underinsured motorist coverage: Covers physical and property damage resulting from an accident with another driver who has some auto insurance, but not enough to cover costs of the accident.
- Uninsured motorist coverage: Covers physical and property damage resulting from an accident with another driver who has no auto insurance.
Many states require underinsured or uninsured motorist coverage, and some require both. Check your state's requirements to see if this applies to you.
Medical payments insurance
Medical payments coverage (MedPay) takes care of your medical expenses after an accident, regardless of fault. This coverage extends to medical costs for you and your passengers, adding an extra layer of protection. Additionally, personal injury protection (PIP) may be required, covering your medical expenses, lost wages, or funeral expenses.
Personal injury protection
Personal Injury Protection (PIP) is designed to cover medical expenses for you and your passengers, regardless of who is at fault in an accident. PIP provides peace of mind by addressing immediate medical needs without the complexities of determining fault. As a note, PIP isn't offered in every state.
Gap insurance
If you still owe money on your vehicle and it's damaged or totaled, gap insurance bridges the gap between your car's value and the amount you owe. This is especially relevant if you're leasing a vehicle.
Additional car insurance options
- Rental car expenses: If your vehicle breaks down, your insurance might cover the cost of a rental car.
- Roadside assistance: Enjoy peace of mind with roadside assistance, including towing services.
- Insurance for classic or antique cars: Ensure the full value of your classic or antique car is protected.
- Business car insurance: If you use your vehicle for business purposes, your insurance can be tailored accordingly.
What is not covered by car insurance?
Car insurance won’t cover all the costs you may have as a car owner, including:
- General maintenance: Tune-ups, replacement of worn parts and other repair costs won’t be covered by car insurance. They’re considered general maintenance and are simply part of the cost of owning a car.
- Mechanical breakdowns: Breaking down on the road won’t be covered by your insurance. That said, purchasing emergency roadside assistance coverage could help reimburse costs of towing, flat-tire replacement and more.
- Property inside your car: As mentioned when we discussed theft, reimbursement for items stolen from within your car falls under personal property coverage, which is part of home insurance.
Final thoughts
It's important to remember that while your insurance provider is responsible for covering claims, ensuring you have the right coverage for your unique situation is your responsibility. Explore these coverage options and customize your auto insurance to fit your needs.
Stay informed, stay covered, and if you need help, always reach out to your local agent.
Frequently asked questions
While many car insurance policies include car insurance for rental cars, you’ll need to check your policy to be certain.
That said, most personal car insurance policies include coverage types that can extend to rental cars, like liability coverage, collision coverage or comprehensive coverage.
If your policy doesn’t include these car insurance coverage types (or if you’d like to be especially protected when renting a car), you can consider rental car insurance.
Car insurance can cover theft, but only if you have comprehensive coverage added to your policy. It'll help pay for damage incurred during break-ins, the cost of stolen parts or the value of a stolen car itself.
It does not, however, cover personal items inside the car. To protect items inside the car—your laptop, phone or other valuables—from theft, you’ll need personal property coverage, which is part of home or renters’ insurance.
Updated 8-12-25
You may also like
Get a car insurance quote
Start a quote or find out more about car insurance.
Your insurance agent is there to help
Contact your rep or call us at 866-COUNTRY (866-268-6879). Find out more about car insurance.
COUNTRY Financial® is a family of affiliated companies (collectively, COUNTRY) located in Bloomington, IL. Learn more about who we are.
Auto insurance policies issued by COUNTRY Mutual Insurance Company®, COUNTRY Preferred Insurance Company® and COUNTRY Casualty Insurance Company®, Bloomington, IL.
This informational article provides an overview of various car insurance coverages for educational purposes. It is important to note that not all mentioned coverages may be offered, and specific insurance policies may vary.
We take pride in providing accurate, truthful information in our articles. See our editorial standards to learn more.