Understanding Car Insurance Coverage

What is the primary purpose of liability coverage in auto insurance?

• To cover damages to your own vehicle

• To pay for bodily injuries and property damage you cause to others

• To protect against theft and natural disasters

• To cover medical expenses for you and your passengers

Collision coverage is designed to:

• Pay for damages you cause to other vehicles

• Only cover damages when the other driver is at fault

• Protect against damages from theft or vandalism

• Cover damages from accidents regardless of who is at fault

Which of the following is NOT covered by comprehensive coverage?

• Damage due to freezing

• Theft

• Hitting an animal

• Vandalism

Personal Injury Protection (PIP) insurance is required in:

• States that do not require liability coverage

• All states

• No-fault states only

• States with high rates of uninsured drivers

Uninsured motorist coverage is essential because:

• It covers vehicle theft

• It is required by law in every state

• It pays for damages if you're at fault

• It protects you if the at-fault driver lacks sufficient coverage