What does auto insurance do?
Auto insurance is a contract between you and an insurer. In exchange for premium payments, the policy can provide financial protection for covered losses according to its coverage types, limits, deductibles, exclusions, conditions and applicable state law.
Common auto insurance coverage types
Liability coverage
Bodily injury and property damage liability generally help address covered injuries or property damage you cause when you are legally responsible for an accident. Required coverages and minimum limits vary by state.
Collision coverage
Collision generally helps pay for covered physical damage to your own insured vehicle after a collision with another vehicle or object. A deductible usually applies.
Comprehensive coverage
Comprehensive generally addresses certain covered non-collision losses such as theft, vandalism, fire, hail, flood, falling objects, animal impacts and some glass damage. Exact definitions vary by policy.
Uninsured and underinsured motorist coverage
UM/UIM coverage can help in certain situations when an at-fault driver has no insurance or insufficient applicable coverage. Requirements and availability vary by state.
PIP and medical payments coverage
Depending on your state and policy, personal injury protection (PIP) or medical payments coverage may help with certain eligible medical costs after an auto accident.
State minimum coverage vs. adequate protection
Your state's minimum requirement is a legal starting point, not a guarantee that the minimum is suitable for every driver's financial situation. Consider your assets, vehicle value, household drivers, ability to absorb a loss and the cost of higher limits.
What does “full coverage” mean?
“Full coverage” is an informal term, not a standardized policy name. It commonly refers to liability plus comprehensive and collision coverage. A policy can still contain limits, deductibles, exclusions and conditions.
What can affect car insurance rates?
Depending on the insurer and state, pricing factors may include driving record, claims history, location, driver characteristics, vehicle, use, mileage, selected coverage, deductibles, prior insurance history and other factors permitted by law.
How to compare car insurance options
- Use the same liability limits. A lower quote may simply provide less protection.
- Match deductibles. Compare similar comprehensive and collision deductibles.
- Match coverage types. Check whether each quote includes the same important protection.
- Review optional coverage. Rental reimbursement, roadside assistance and other add-ons can change price.
- Review exclusions and conditions. The actual policy matters more than a marketing summary.
- Look beyond price. Claims service, complaint information, financial strength and policy features can matter too.
Auto Insurance Guides
Use these detailed guides to understand common decisions before comparing policies.
What information should you have ready?
- Driver names and basic driver information
- Vehicle year, make, model and use
- Approximate annual mileage
- Current coverage information, if applicable
- Desired liability limits and deductibles
- Household drivers who may need to be listed
Ready to Compare?
We are preparing integrations with independent insurance marketplaces. Until an approved partner is live, use our educational guides to understand your coverage choices and prepare the information you may need.
Read Comparison GuideNo live insurance quote is provided on this page at this time.
Frequently asked questions
What does “full coverage” mean?
It commonly refers to a policy containing liability, comprehensive and collision coverage. It is not a standardized policy type and does not cover every possible loss.
Is state-minimum auto insurance enough?
State minimums can satisfy applicable legal requirements when properly structured, but they may not provide a level of financial protection suitable for every driver or accident.
Do I need comprehensive and collision?
A lender or lessor may require both on a financed or leased vehicle. For an owned vehicle, consider its value, premiums, deductibles and your ability to repair or replace it yourself.
Should I choose the lowest quote?
Not automatically. Compare equivalent limits, deductibles and coverage before deciding which policy offers better value for your needs.
Can All Peoples Insurance sell me a policy?
No. AllPeoplesInsurance.com is an independent informational website and is not an insurance company, insurance agency or licensed insurance provider.
Insurance rules and policy terms vary by state and insurer. Verify current requirements and final coverage through official policy documents, an insurer, a licensed professional or your state insurance regulator.