| Auto Insurance Infographics
Types of car insurance explained, red
States require drivers to carry car insurance. Lenders require it as part of the loan agreement for a car. You may want it to better protect your own vehicle and finances. However, there’s not just one type of car insurance — from liability to comprehensive and collision, there are many different types! Confused about which coverage you need? Learn about the different components of auto insurance in the infographic below to help you get the right policy.

For more insurance information and to learn about our products and services, call 1-877-DIRECT (1-877-463-4732) or find a store location near you to speak with a friendly Direct Auto & Life Insurance agent.

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State Minimum Car Insurance

1 Required in most states.
2 Required in certain states. Some states offer as optional insurance.

Bodily Injury Liability

1 Bodily Injury Liability

Bodily injury liability coverage pays for another person’s medical or funeral expenses (not yours) if you cause a car accident. It may also cover your legal costs to resolve a personal injury lawsuit if needed.

Property Damage Liability

1 Property Damage Liability

Property damage liability coverage pays to repair or replace another person’s property (not yours) if you’re responsible for a car accident. Typically, it covers damage to the other driver’s vehicle and someone else’s property.

Personal Injury Protection

2 Personal Injury Protection

Regardless of who is at fault, personal injury protection, or PIP, helps pay for bodily injuries that you and your passengers incur in an accident. It can cover medical, hospital, and funeral expenses, lost wages, and childcare services.

Uninsured Motorist Coverage

1 Uninsured Motorist Coverage

Uninsured motorist coverage pays for your expenses if you’re hit by an uninsured or underinsured driver. Depending on the state, it may offer two types of protection; bodily injury to pay for medical bills, and property damage to pay for damages to your vehicle.

Car Insurance to Protect Your Car

*Often required by a lender or bank if car is leased or financed.
These coverages almost always include a deductible.

Collision

Collision

Collision coverage pays to repair or replace your vehicle if you collide with an object like a car, tree, or guardrail. It also covers your car if it overturns in an accident or is involved in a hit-and-run.

Comprehensive

Comprehensive

Comprehensive coverage, also referred to as “other than collision coverage,” pays for vehicle damage not caused by a collision. For example, it can cover damage to your vehicle from weather conditions or natural disasters, falling objects, vandalism, fire, or theft.

Optional Coverages

*May be added to a car insurance policy for more financial security.

Medical Payments

Medical Payments

Medical payments coverage pays for you and your passenger’s medical costs, including ambulance bills, hospital bills, or funeral expenses in the event of a covered car accident, regardless of who is at fault.

Towing and Labor

Towing and Labor

Towing and labor coverage added to a policy with comprehensive and collision insurance covers emergency towing costs due to a mechanical breakdown or an accident, and any necessary labor costs and services at the place of breakdown.

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By the Direct Auto & Life Insurance carrier & agency members of the National General Ins. Grp., Winston-Salem, NC. This article is for general information or entertainment purposes only. Direct General does not endorse and is not affiliated with any of the companies or apps listed in this article. Direct General is not responsible or liable for the availability of links to websites or resources, or for any content, advertising, products, services or other materials on or available through these websites or resources. Any references to third party rates or products are subject to change without notice. Trademarks are property of their respective owners.

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