Auto Insurance basics

Car insurance bundles several different coverages, and each one pays for a different kind of loss. Knowing what they do is the first step to buying the right amount — and not overpaying.

Liability pays for harm you cause to other people and their property. Most states require it, but the legal minimums are often far below the cost of a serious crash.

Collision pays for damage to your own car from a crash. Comprehensive covers non-crash losses like theft, hail, fire, and hitting an animal.

Uninsured/underinsured motorist protects you when the at-fault driver has no coverage or not enough. Medical payments or personal injury protection covers medical bills regardless of fault.

When you compare quotes, line up the same coverages and limits across companies. A cheaper quote often just means less protection.