Types of Auto Insurance
There are six main categories of auto insurance, organized by the type of coverage they provide: Liability Insurance, Collision Insurance, Comprehensive Insurance, Personal Injury Protection, Uninsured/Underinsured Motorist Insurance, and Full Coverage Insurance.
Main Categories
- Liability Insurance — covers damages to other people or property in an accident where the policyholder is at fault, as seen in Geico's liability insurance policies, which offer bodily injury and property damage coverage.
- Collision Insurance — pays for damages to the policyholder's vehicle in an accident, regardless of fault, with State Farm offering collision insurance that covers repairs or replacement of the vehicle.
- Comprehensive Insurance — covers non-collision damages, such as theft, vandalism, or natural disasters, with Allstate providing comprehensive insurance that includes coverage for glass damage and roadside assistance.
- Personal Injury Protection — covers medical expenses for the policyholder and their passengers, regardless of fault, as offered by Progressive, which includes coverage for lost wages and funeral expenses.
- Uninsured/Underinsured Motorist Insurance — protects the policyholder in an accident with someone who has inadequate or no insurance, with Liberty Mutual offering uninsured/underinsured motorist insurance that includes coverage for bodily injury and property damage.
- Full Coverage Insurance — combines liability, collision, and comprehensive coverage, with USAA offering full coverage insurance that includes additional features such as roadside assistance and rental car coverage.
Comparison Table
| Category | Cost | Scale | Speed of Claims Processing |
|---|---|---|---|
| Liability Insurance | lower | individual | 3-5 business days (Geico) |
| Collision Insurance | moderate | individual | 5-7 business days (State Farm) |
| Comprehensive Insurance | moderate | individual | 5-7 business days (Allstate) |
| Personal Injury Protection | higher | individual | 7-10 business days (Progressive) |
| Uninsured/Underinsured Motorist Insurance | lower | individual | 3-5 business days (Liberty Mutual) |
| Full Coverage Insurance | higher | individual | 7-10 business days (USAA) |
How They Relate
The categories overlap in that Liability Insurance is often required by law, while Collision Insurance and Comprehensive Insurance are typically optional, but may be required by lenders. Personal Injury Protection and Uninsured/Underinsured Motorist Insurance are often bundled with Liability Insurance. Full Coverage Insurance combines multiple categories, including Liability Insurance, Collision Insurance, and Comprehensive Insurance. Specific pairs, such as Collision Insurance and Comprehensive Insurance, are commonly confused, but they serve distinct purposes, with Collision Insurance covering accidents and Comprehensive Insurance covering non-collision damages. Additionally, Uninsured/Underinsured Motorist Insurance and Liability Insurance are related, as they both provide protection in accidents, but Uninsured/Underinsured Motorist Insurance specifically addresses accidents with underinsured or uninsured drivers.