Liability, collision, comprehensive: the three dials of an insurance policy

§01Liability: the dial that faces outward

Liability coverage pays, up to your limits, for injuries and property damage you are legally responsible for causing to others. It does not pay to fix your own car or treat your own injuries. Most states require some amount of it. The figures on a policy are often written as three numbers, such as one for injury per person, one for injury per accident, and one for property damage.

§02Collision: the dial for crashes

Collision coverage helps pay to repair or replace your vehicle after it hits another car or object, or rolls over, regardless of who was at fault. It usually comes with a deductible, which is the part you pay first. Owners of older, lower-value vehicles sometimes drop it, and lenders or lessors often require it on financed or leased cars.

§03Comprehensive: the dial for everything else

Comprehensive covers many non-crash losses to your car, such as theft, vandalism, fire, hail, falling objects, and hitting an animal. Like collision, it normally has a deductible. The exact list of covered events is in your policy, so read the wording rather than assuming.

§04Other items you may see

• Uninsured / underinsured motorist: can help when the other driver has no insurance or too little.
• Medical payments or personal injury protection: can help with medical bills for you and your passengers, depending on the state.
• Rental reimbursement and roadside help: optional add-ons.

§05Check the rules where you live

Required coverages, minimum limits, and even the names of some coverages vary by state. Your state insurance department’s website is a reliable place to see what applies to you.