What Can Auto Insurance Cover?

Auto insurance can provide different types of coverage depending on your state and selections. The available options usually include liability, medical expenses, underinsured/uninsured motorist, and physical damage coverage.


Liability insurance pays for damage to others accidentally caused by you as a result of an auto accident. It also pays for a lawyer to defend you if you are sued for damages. This coverage is usually required under state financial responsibility laws.

Medical Expenses

Depending on your state, this can provide coverage for the medical expenses you or anyone covered by your policy incur as a result of an auto accident. Some examples of medical coverages are Personal Injury Protection (PIP) or Medical Payments (MedPay). Depending on your state, you may be required to have a minimum amount of medical coverage.

Underinsured and Uninsured Motorist (UM/UIM)

UM/UIM pays to compensate you if you are injured in an accident caused by a motorist with too little or no insurance coverage. In some states, this coverage also may pay for your property damage caused by a motorist with too little insurance.

Physical Damage Coverage

Other Than Collision (Comprehensive) coverage pays, above your chosen deductible, for damage to your vehicle that is not the result of a collision with another car or object. Causes of damage might include theft, vandalism, flooding, fire, a broken windshield, or collision with an animal.

Collision coverage pays, above your chosen deductible, for damage to your vehicle resulting from your vehicle's impact with another vehicle or object.

Your physical damage coverage may also come with transportation expense reimbursement. This coverage helps offset your out-of-pocket costs to rent a car or use a ride sharing service or taxi while your car is being repaired after a covered loss.

The information and descriptions on this site are general in nature. The coverage afforded for a particular loss depends on the specific facts and the terms, exclusions, and limits of the actual policy. Nothing on this site alters the terms or conditions of any policy, as the policy controls coverage. Coverage options, limits, discounts, deductibles, and other features are subject to underwriting criteria, state availability, and effective dates. Coverage provided and underwritten by NJM Insurance Company and its subsidiaries, 301 Sullivan Way, W. Trenton, NJ 08628.