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Coverage 5 min read
Coverage Types Explained
Understand what each coverage type protects and how state minimum requirements actually work.
Informational only: The content on this page is for educational purposes and does not constitute insurance advice, a quote, or a recommendation to purchase any insurance product.
Every state requires a minimum amount of auto insurance, but the minimum is rarely enough. The required floor exists so that other drivers can recover damages if you cause an accident.
Bodily injury liability pays for medical costs of people you injure. Property damage liability pays for repairs to their vehicle or property. Uninsured motorist coverage protects you if the other driver has no insurance.
When a policy is described as 25/50/25, that means up to twenty-five thousand per person injured, fifty thousand per accident, and twenty-five thousand for property damage. These limits are easy to exceed in a serious collision.