What are the different types of car insurance?

Car insurance is required by state law.

There are four main types of car insurance: comprehensive, collision, and liability. Full coverage is a combination of the three.

The minimum coverage requirements for liability insurance vary by state, but if you finance or lease your car, your lender probably requires comprehensive and collision coverage.

Liability Insurance Collision Insurance Comprehensive Full Coverage
  • Only covers damage you cause to others or their vehicle, not your vehicle
  • Required by state
  • Covers repairs your car if it’s damaged in a collision
  • Does not cover damage from theft, fire, vandalism, natural disaster, or liability for injuries
  • Replaces or repairs your vehicle if it’s stolen or damaged. Comprehensive coverage typically covers damage from theft, fire, vandalism, or falling objects
  • Does not cover accidents, collisions, or liability for injuries
A combination of liability, collision, and comprehensive coverage


What does liability car insurance cover
Liability car insurance is what most people are familiar with because it is required by state law. If you’re involved in an accident, liability insurance covers damage you cause to the other vehicle, driver, and passengers.

Liability insurance does not cover damage to you or your vehicle, only damage you cause to others or their vehicle. Coverage for your vehicle requires comprehensive, collision, or full coverage.

The two main components of liability insurance are bodily injury (BI) and property damage (PD), which most states require. Liability insurance also includes uninsured motorist (UM) and underinsured motorist (UIM) coverage, to protect you when an at-fault driver hits you and they have no coverage, or not enough coverage. Some states also require uninsured and underinsured motorist coverage.

Coverage minimums for liability insurance are usually listed with numbers and slashes. For example, a 25/50/10 policy would cover up to $25,000 of injury protection for each person involved in an accident, up to $50,000 worth of injuries per incident, and up to $10,000 of property damage per incident.

Liability Type Coverage Provided
Bodily Injury (BI) Injury you cause to others, including medical expenses, lost wages, and funeral expenses
Property Damage (PD) Damage you cause to others’ vehicle or property
Uninsured Motorist (UM) Protects you when an at-fault driver hits you with no insurance
Underinsured Motorist (UIM) Protects you when an at-fault driver hits you with not enough coverage


Other types of car insurance: comprehensive, collision, and full coverage
Comprehensive coverage replaces or repairs your vehicle if it’s stolen or damaged. Comprehensive coverage typically covers damage from theft, fire, vandalism, or falling objects like a tree. However, it does not cover accidents, collisions, or liability for injuries.

Collision insurance repairs your car if it’s damaged in a collision with another vehicle or object. Car accidents are usually when collision coverage is involved. It does not cover damage from theft, fire, vandalism, natural disaster, or liability for injuries.

If you finance or lease your car, your lender probably requires comprehensive and collision coverage. However, full coverage would be an even better option if you need comprehensive and collision coverage.

Full coverage is a combination of liability, comprehensive, and collision insurance.

Damage Comprehensive Collision Liability* Full
Theft Yes No No Yes
Vandalism Yes No No Yes
Fire Yes No No Yes
Natural Disaster Yes No No Yes
Falling objects (tree) Yes No No Yes
Animal damage Yes No No Yes
Collision/accident No Yes No Yes
Rollover No Yes No Yes
Bodily injury (BI)/medical bills No No Yes Yes
Physical damage No No Yes Yes
Property damage (PD) No No Yes Yes
Uninsured motorist (UM/UIM) No No Yes Yes

*Most states require some type of liability coverage

How much does car coverage insurance cost
Your annual car insurance premium will be based on several factors, including the type of vehicle, your location, mileage, and driving record. In some states, your age and credit score are also considered.


Ronda Lee
Founder, Editor-in-Chief
Ronda is an attorney, writer, and entrepreneur. She is a contributing writer for the Huffington Post. Originally from Chicago, she has lived in Los Angeles and New York. She loves to travel and is passionate about education equity, especially for first generation college students.