What is car insurance?

family sitting in the back of a mini-vanAuto accidents can happen, even to the best of us. An auto insurance policy can help cover repairs to your vehicle and medical costs in the event of an accident. Think of it as your firewall against economic disaster should you be found at fault for property damage or injuries to other people.

Have you ever compared auto insurance rates with a friend or a family member only to discover your premiums are different? Learn more about how auto insurance rates are determined.

Understanding Your Auto Insurance

We admit it. Auto insurance isn't the easiest thing to comprehend. You may feel like you need a PhD, the Rosetta Stone, and Sherlock Holmes to de-code all of the language about your car insurance, from Comprehensive coverage to Collision and other types.

Really, though, it's not that complicated. Here's a quick overview that will have you understanding auto insurance so well, you may just want to read your policy for fun! (OK-maybe not.)

What are the types of car insurance coverages?

  1. Bodily Injury liability provides protection if you injure or kill someone while operating your car. It also provides for a legal defense if another party in the accident files a lawsuit against you.

    In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily Injury liability covers injury to people, not your vehicle. Therefore, it's a good idea to have the same level of coverage for all of your cars.

  2. Property Damage liability protects you if your car damages someone else's property. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object.

  3. Uninsured Motorist coverage pays for your injuries caused by an uninsured driver or, in some states, a hit-and-run driver. In some states, there is also Uninsured Motorist coverage for damage to your vehicle.

    Given the large number of uninsured motorists, this is very important coverage to have, even in states with no-fault insurance

  4. Medical Payments, no-fault or Personal Injury Protection coverage usually pays for the medical expenses of the injured driver and passengers in your car. They may also be coverage if you are injured by a vehicle as a pedestrian.

  5. Comprehensive physical damage coverage pays for losses resulting from incidents other than collision. For example, Comprehensive car insurance covers damage to your vehicle if it is stolen; or damaged by flood, fire or animals.

    To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. If you have an older vehicle you may want to consider whether you need this coverage as it is normally limited to the cash value of your car.

  6. Collision coverage pays for damage to your car when your car hits, or is hit by, another vehicle or other object.

    To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. If you have an older vehicle you may want to consider whether you need this coverage as it is normally limited to the cash value of your car.

In addition to these basic coverages, GEICO offers:

It may seem like there's a lot to understand about auto insurance coverage. If you have any questions about auto coverages or anything else regarding your policy, contact our licensed insurance agents at (800) 861-8380.

Why should I buy my auto insurance from GEICO?

Here are six great reasons to buy an auto insurance policy from GEICO (presented in no particular order):

  1. Most customers save money because we offer some of the best auto insurance rates around.
  2. You can reach us any time, day or night, any day of the year.
  3. You deal directly with GEICO.
  4. We settle claims quickly and fairly.
  5. We are financially stable with a solid reputation.
  6. We are part of Warren Buffett's Berkshire-Hathaway, Inc.

Please Note:

The above is meant as general information and as general policy descriptions to help you understand the different car insurance coverage available to you, including Comprehensive, Collision and other types. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.