Collision coverage helps pay for damage to your car if you collide with another car or something else such as a building, bridge, or tree, minus the amount of your deductible. If you lease or finance your vehicle, you may be required by your lender to purchase collision insurance coverage.

If you cause a car accident that injures another person, bodily injury liability coverage helps protect you from losing your savings or home to pay for the damages, such as medical costs, loss of income and funeral expenses of other people involved in a covered accident.

In the event you’re hurt in an accident and taken to the hospital, medical payments coverage pays for your initial medical expenses related to the accident, regardless of who is at fault. The passengers in your car are also covered, as well as family members living with you if they’re injured as pedestrians or when riding in another person’s car.

When you’re found legally responsible for a car accident, property damage liability coverage is the part of your insurance policy that pays for the costs associated with repairing or replacing another person’s property. This typically means damage to someone else’s car, but it could apply to any other type of property you damage in an accident.