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Required coverages include those mandated by state law and any insurance required by a lender or lessor, such as liability insurance, which covers expenses like personal injury to others when you’re at fault or damage to a vehicle. Optional coverages include collision and comprehensive insurance, which covers repairing a car you fully own, among other costs.

Learn how car insurance policies must follow certain requirements and can be tailored to fit your needs.

What Does Auto Insurance Cover?
An auto insurance policy is a collection of several types of protections. State laws require drivers to purchase minimum insurance coverage, and lenders and leasing companies usually impose additional coverage for financed and leased cars.

Liability Coverage
A standard car insurance policy includes bodily injury and property damage liability coverages. When you’re at fault for an accident, bodily injury liability coverage can help pay the other driver’s and passengers’ medical bills. Property damage liability can help pay to repair or replace the other driver’s vehicle and repair costs for any damaged structures such as a fence or building.

States require automobile owners to carry minimum bodily injury and property damage coverage, but these amounts vary. Here are three examples: