Before using the calculator, it helps to understand the main categories of auto insurance coverage available:
Required Coverages (in Most States)
Bodily Injury Liability (BI)
Covers injuries you cause to other people in an accident you're responsible for. Typically written as two numbers: "per person" limit and "per accident" limit. Example: 50/100 means up to $50,000 per person injured, $100,000 total per accident.
Property Damage Liability (PD)
Covers damage you cause to other people's property (their vehicle, fences, buildings, etc.). Usually has a single limit like $25,000 or $50,000 per accident.
Common Optional Coverages
Collision Coverage
Pays to repair or replace your vehicle if it's damaged in a collision with another vehicle or object, regardless of who's at fault. Subject to a deductible. Required by lenders/lessors for financed or leased vehicles.
Comprehensive Coverage (Other Than Collision)
Covers damage to your vehicle from non-collision events including theft, vandalism, weather (hail, floods), fire, falling objects, and animal collisions. Also subject to a deductible. Usually purchased with collision as part of "full coverage."
Uninsured Motorist (UM) Coverage
Protects YOU when the at-fault driver either has no insurance or not enough to cover your damages. Required in some states. Highly recommended everywhere given the number of uninsured drivers on U.S. roads (typically 10-15% nationally).
Underinsured Motorist (UIM) Coverage
Kicks in when the at-fault driver has some insurance but not enough to cover all your losses. Works similarly to UM but applies to underinsured situations specifically.
Personal Injury Protection (PIP) / Medical Payments (MedPay)
PIP covers medical expenses for you and your passengers regardless of fault, plus sometimes lost wages and other costs. Required in no-fault states. MedPay is simpler — just pays medical bills up to the limit, no-fault, available in most states.
Situational / Add-On Coverages
- Gap Insurance: Covers difference between what you owe on a loan/lease and the actual cash value of your vehicle if it's totaled. Important for new cars that depreciate quickly.
- Rental Reimbursement: Pays for a rental car while yours is being repaired after a covered claim.
- Roadside Assistance: Covers towing, lockout service, flat tire changes, jump-starts, and fuel delivery.
- Rideshare Insurance: Special coverage for drivers who work for Uber, Lyft, or similar services (personal auto policies often exclude this).
- Classic/Collector Car Insurance: Specialized coverage for vintage vehicles based on agreed value rather than actual cash value.
Some states require PIP or uninsured motorist coverage as part of minimum requirements. Some are "no-fault" states where the system works differently. Always verify your state's specific legal requirements through official sources before purchasing only minimum coverage.