Not sure what type of car insurance you need? From liability and collision to gap insurance and uninsured motorist coverage, this guide breaks down every coverage type and helps you find the right policy for your needs.
Before diving into coverage types, get comfortable with the basics:
Liability coverage pays for injuries or property damage you cause to others in an accident where you are found at fault. This is the type of coverage required by law in most states.
It includes:
Liability coverage does not pay to repair your own car.
Collision coverage helps pay to repair or replace your vehicle if it is damaged in a crash, regardless of who caused the accident.
This applies to situations such as:
Collision coverage usually includes a deductible and is often required for financed or leased vehicles.
Comprehensive coverage pays for damage to your vehicle caused by events other than collisions. Like collision coverage, comprehensive coverage has a deductible.
This includes:
MedPay covers medical expenses for you and your passengers after an accident, no matter who caused it. That includes hospital visits, surgery, and rehabilitation. Limits tend to be lower, and it's designed to address immediate costs rather than long-term care.
Wisconsin requires both uninsured motorist (UM) and underinsured motorist (UIM) coverage, and for good reason.
According to a study by IRC, one in three drivers is underinsured or uninsured.
Uninsured motorist coverage helps protect you if you are hit by a driver who does not carry auto insurance. It may help pay for medical expenses, lost wages, and pain and suffering, depending on state guidelines
Underinsured motorist coverage applies when another driver causes an accident but does not have enough liability coverage to fully pay for your injuries or damages. It helps cover the remaining costs, up to your policy limits.
Personal injury protection, or PIP, is required in no‑fault states and provides broader benefits than MedPay. Coverage rules and limits vary by state.
PIP may cover:
If your car is totaled or stolen, your insurer pays out the vehicle's current market value, not what you owe on the loan.
Gap insurance covers the difference. It's especially useful if you made a small down payment, have a long loan term, or drive a vehicle that depreciates quickly.
Roadside assistance covers emergency services when your vehicle becomes inoperable: towing, jump-starts, flat tire help, lockout assistance, and fuel delivery. It's a small add-on that can save a lot of hassle.
Minimum coverage exists to satisfy legal requirements. It is not designed to reflect what a serious accident actually costs. Medical bills from one bad crash can easily exceed $100,000. If your limits run out, the rest comes out of your pocket.
Higher limits and additional coverages are not just for peace of mind. They're a financial buffer between you and a situation that could follow you for years.
Premiums are shaped by more than accidents and tickets. Insurers also factor in where you live and park, how often you drive, your vehicle's safety features and repair costs, your coverage choices, and in most states, your credit history.
Some of these factors can be adjusted. A policy review can surface options you may not know you have.
Car insurance is not just a legal checkbox. It's a financial safety net, and it should actually fit your life. Understanding what each coverage type does is step one. Making sure your policy reflects your current situation is what protects you when it matters.
Reaching out to one of our agents can help you compare quotes, find the coverage that fits your needs, and confirm that your policy details still make sense for where you are today.
Speak with an advisor today!You Can Always Call Us Toll-Free at: 1 (888) 262-6729
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