What Does Auto Insurance Cover? The Three Things You Must Know

Three things that auto insurance covers.

Why Auto Insurance Matters: Your Roadmap to auto insuranceProtection 🚗

Auto insurance is more than a legal requirement—it’s a cornerstone of financial safety, peace of mind, and responsible driving.

1. Financial Protection

If you're at fault in an accident, liability coverage helps pay for other people's medical bills and property damage. Without it, you could be responsible for thousands or even millions in costs.

2. First‑Party Coverage

This includes collision coverage (damage to your vehicle in a crash) and comprehensive coverage (non-collision events like theft or hail). It also helps pay for your own medical expenses and those of your passengers.

3. Legal Compliance

Almost every state requires you to carry liability insurance. Driving uninsured can lead to fines, license suspension, or even jail.

4. Protection for Loans and Leases

If your car is financed or leased, lenders typically require collision and comprehensive coverage to protect their investment.

📺 Watch: How Does Car Insurance Work?

Learn the basics of auto insurance—coverage types, required policies, and how claims work in this popular video by Progressive:

Video of how auto insurance works.

FAQ's

What are the minimum coverages required?

Most states mandate liability insurance for bodily injury and property damage. Requirements vary—check your state’s department of insurance or DMV.

Do I need comprehensive and collision coverage?

Not legally—but if you have a loan or lease, these coverages are almost always required.

What if I’m not at fault?

Your liability covers the other party, but your collision and uninsured/underinsured motorist coverages protect your vehicle and medical expenses even if you’re not at fault.

What is uninsured motorist coverage?

It covers you if you’re hit by a driver with no insurance (or insufficient coverage), paying for your medical bills and damages.

Can insurance costs go up?

Yes—factors like location, accident claims, driving record, and vehicle value all influence premiums. Insurance rates rose 11% last year due to higher repair costs.

Final Thoughts

Auto insurance is your safety net—protecting you, your passengers, others on the road, and potentially your lender. Whether you're just meeting the minimum requirements or aiming for full protection, a personalized policy ensures you’re prepared for whatever’s around the corner.

🚨 Ready for Peace of Mind?

Contact Poole & Jackson Insurance today at (248) 443-0000 for a free auto insurance review—we’ll help you find the right coverage at the right price.