Rental car Insurance State Farm

Auto insurance can be confusing, especially since state laws vary and require different kinds of coverage. Below is a general Q&A so that you can familiarize yourself with a few key terms as you make your way through the quote process.

Q: Who does my auto insurance policy cover?

A: An auto insurance policy typically covers you, your spouse, relatives who live in your home, and other licensed drivers who have permission to drive your insured vehicle.

Q: What are auto insurance “coverages”?

A: An auto insurance policy generally consists of several kinds of coverage, which represents different aspects of your overall auto insurance coverage. There are many kinds of coverage; some examples are liability, personal injury protection, medical payments, and collision.

Because all 50 states have different auto insurance laws, coverage descriptions vary from state to state. Below you can find some general information about the most common auto insurance coverage. For more specific information about your state, talk to your local agent.

Liability Coverage

Auto liability coverage pays for damage if you’re legally responsible for accidentally injuring someone or for damaging another vehicle or other property in an auto accident.

Auto liability coverage falls into two categories:

1. Bodily Injury Liability covers medical expenses, pain and suffering, lost wages, and other special damages.
2. Property Damage Liability covers damaged property, and may include loss of use. Your Liability coverage also pays legal defense and court costs.

State laws usually dictate the minimum amounts of insurance required, but higher amounts are often available.

Personal Injury Protection (PIP)

In some states, this coverage pays the reasonable and necessary medical expenses for covered persons for treatment due to an auto accident. Depending on the state and the particular coverage, it may also pay for rehabilitation, lost earnings, replacement of services (for example, childcare if a parent is disabled), and funeral expenses.

Medical Payments

This coverage pays reasonable and necessary medical and funeral expenses for covered persons when those expenses are related to an auto accident. It’s available in most states.