Ensure Blog

Understanding Your Car Insurance Coverage

We All Have Car Insurance

But do we understand what is covered?

Most of us have car insurance, but most of us do not understand the intricacies involved in car insurance. For many people, it’s simply a matter of calling, signing and driving off. Which is the way we prefer things – simple. After all, you do have agents to take care of the real knitty gritty stuff. However, more and more people are neglecting certain aspects of their car insurance, especially when it comes to the different forms of coverage.

A typical car insurance policy usually includes bodily injury liability limits, property damage, and uninsured/underinsured motorist coverage, which is mandatory in all states. Optional coverages include collision, comprehensive, medical payments, rental car reimbursement and towing labor. Many people are unfamiliar with what these options mean, though, and what exactly they entail. And many people don’t want to know – just the bare essentials please. And then, of course, those people run into a circumstance where they needed a specific coverage option.

We’re not saying you have to sign up for everything, but at the very least brush up on everything. Don’t be so quick to deny extra costs for extra coverages. Remember, insurance is all about being future-oriented. Enhance your understanding of car insurance, one of the most important policies you’ll ever have, so that you can shape a plan that keeps you and your family safe now and down the road. Let’s get into the most important coverages involved in car insurance:

Bodily Injury Liability Limits

This covers damages to another person resulting from an accident you cause.

  • What does it cover? If you have 30/60 for your coverage, this means your insurance carrier will cover up to $30,000, per person, in that vehicle, and up to $60,000 per occurrence/accident.

Bodily injury liability limit person– This establishes a maximum payout for each individual who is injured in an accident that you cause, up to your policy limit.

Bodily injury liability limit per occurrence– This sets a cap on the total amount that your insurance provider will pay out for all damages associated with a single accident you cause. It’s important to set this limit high enough so it will be enough to pay the medical expenses incurred by multiple people.

Property Damage

This is the maximum amount your insurer would pay for damage to another party’s property. The maximum payout would not exceed the limit you’ve set.

  • What does it cover? Property damage would cover vehicle repair and damage to state or county property, like guard-rails, signs and telephone poles. Most people don’t realize: If you hit a telephone pole, you are responsible for the replacement of the pole and the labor and any other additional expenses incurred. Keep in mind the average cost of a new vehicle is $25,000… If you currently only have the state minimum for your property damage, you may be underinsured.

Uninsured/Underinsured Motorist

Uninsured– This covers you if you are in an accident and that driver does not have car insurance. This coverage option will protect you and cover any injury related medical expenses and damages to your vehicle.

Underinsured- This covers you if the other driver doesn’t have the necessary amount of insurance to cover injury related expenses or property damage.


If your car is damaged or destroyed in an accident, collision insurance coverage will typically pay to fix or replace it. Collision usually has a deductible that must be paid initially, then once that amount has been paid, your insurer will cover the remaining repair cost. Deductibles are usually between $0-$1000.

  • What does it cover? Types of covered accidents include hitting another car or hitting a stationary object, like a bridge or a tree.


Your car can be damaged even if you are not in a crash. These are not at-fault accidents. These type of accidents typically have a deductible that must be paid initially, then once that amount is reached, the insurer covers the rest of the damage. These deductibles usually range from $0-$1000.

  • What does it cover? Comprehensive protects you if your vehicle is damaged by an animal, cracked or broken windshields or windows, theft, vandalism, storm damage or falling objects.

Medical Payments

Medical payments are usually an optional coverage offered. These can cover medical expenses that are associated with accidents. It does not matter who is found to be at fault for these to be covered.

  • What does it cover? It generally covers you, your passengers and family members driving the insured vehicles. Medical payments can cover doctor visits, ambulance fees, surgery, X-rays and hospital visits and stays.

Rental Car Reimbursement

This is coverage that helps cover the cost of renting a car if your vehicle is in the shop for repairs due to a covered loss.

  • What does it cover? The insurer will pay a certain amount per day, up to how ever many days the adjuster thinks the repairs will take. This is optional coverage but you must have comprehensive on your policy to be eligible for this coverage. This does not include regular vehicle maintenance.

Towing & Labor

This coverage includes emergency roadside & assistance. This is an optional coverage and is usually a reimbursement, which means you would pay for the service out of pocket, then provide your insurer with a receipt. You would be reimbursed up to a certain amount. Typically the reimbursement is up to $25-$50.

  • What does it cover? This coverage generally includes towing, jump starts, lockout service, tire changes, & fuel delivery.

If you have any additional questions about your car insurance, give one of our Insurance Architects a call. One of our agents will gladly walk you through your policy and help you better understand your auto coverage options. Give us a call at 443-783-5752, or click below! There is no better way to drive than with your mind at ease. Get better acquainted with your auto policy today!

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