PLAY: Types of Car Insurance

If your car was damaged in an accident, I’ve got your back. It doesn’t matter who was at fault while driving. However, if the damage came from something besides a crash, I won’t be around to help you.

I am…

• Uninsured/ Underinsured Coverage

• Collision Coverage

•  Personal Injury Protection

• Comprehensive Coverage

• Liability Coverage

You are hit in an accident by another driver. At the hospital, you discover the other driver doesn’t have insurance to cover your medical bills. That’s when I kick in!

I am…

• Uninsured/ Underinsured Coverage

• Collision Coverage

•  Personal Injury Protection

• Comprehensive Coverage

• Liability Coverage

Doesn’t matter who was at fault, if you’re in a car accident and need your injuries paid for, I’m there for you. Simple as that. However, anything beyond your injuries and I can’t help you.

I am…

• Uninsured/ Underinsured Coverage

• Collision Coverage

•  Personal Injury Protection

• Comprehensive Coverage

• Liability Coverage

I’m the best friend of new and/or expensive cars, since repairing even small damage can be incredibly costly. Did I mention that the damage doesn’t even have to be from an accident with another driver? Nope! If you hit an animal, or your car is stolen, or a tree falls on it, I’ve still got you covered! (But read my fine print because there are a few cases I won’t cover).

I am…

• Uninsured/ Underinsured Coverage

• Collision Coverage

•  Personal Injury Protection

• Comprehensive Coverage

• Liability Coverage

I’m the one you call when you cause damage to other people and vehicles. I protect others… against you in case an accident is your fault (which protects you… in your wallet). But I won’t pay for any damage to your car or body.

I am…

• Uninsured/ Underinsured Coverage

• Collision Coverage

•  Personal Injury Protection

• Comprehensive Coverage

• Liability Coverage

Stephen is slowing down as he approaches a red light. He is looking in his mirror to switch lanes and misjudges how close Keisha’s car is, rear-ending her car. When they get out and assess the damage, Keisha’s bumper will need to be replaced. What type of insurance could Stephen use to cover this accident?

• Uninsured/ Underinsured Coverage

• Collision Coverage

•  Personal Injury Protection

• Comprehensive Coverage

• Liability Coverage

Answer explanation

Since Stephen was not looking and hit Keisha’s car, that makes him at fault for the accident. That means he needs to use Liability Coverage to pay for the damage to Keisha’s bumper.

Keisha had some discomfort in her neck at the time of the accident, but thought it was minor and would go away. A week or so after the accident, Keisha finally goes to the doctor, who diagnoses her with whiplash and recommends two months of physical therapy. What types of insurance could Keisha use to cover this accident? Choose TWO.

• Uninsured/ Underinsured Coverage

• Collision Coverage

•  Personal Injury Protection

• Comprehensive Coverage

• Liability Coverage

Answer explanation

This is somewhat of a trick question. Since he was at fault, it should be Stephen’s Liability Coverage that also pays for injuries suffered by Keisha. However, injuries reported weeks after the accident can be tricky with regards to who pays, so to be safe Keisha would want her Personal Injury Protection as a backup.

Melanie gets into an accident on the highway that sends her to the hospital for three weeks with multiple broken bones. Her hospital bill totals over $32,000, but she discovers that the woman who hit her only has $25,000 worth of liability insurance. What types of insurance could Melanie use to cover this accident? Choose TWO.

• Uninsured/ Underinsured Coverage

• Collision Coverage

•  Personal Injury Protection

• Comprehensive Coverage

Answer explanation

Melanie has two options to cover her remaining medical bills. First, she could use Uninsured/Underinsured Coverage, which kicks in when the other driver doesn’t have enough Liability Coverage. Or, she could use Personal Injury Protection since her bills are medical bills.

Bernard is driving late at night down a narrow road when a deer runs across the road. Bernard doesn’t have time to avoid the deer and hits it. His windshield gets smashed and his bumper is partially ripped off, but Bernard is okay. What type of insurance could Bernard use to cover this accident?

• Uninsured/ Underinsured Coverage

• Collision Coverage

•  Personal Injury Protection

• Comprehensive Coverage

• Liability Coverage

Answer explanation

This is a tough one. Hitting an animal falls under Comprehensive Coverage because the auto insurance companies generally believe this is a random and often unavoidable occurrence, and should be treated the same as your vehicle getting stolen or damaged by weather. Your rates generally don’t rise after such events.

You might think the answer would be Collision Coverage would be the answer since there is a collision, you’d actually be wrong. Collision Coverage pertains to collisions that likely could have been avoided (like hitting a parked car), and your insurance rates probably will rise after such an event.