Auto Insurance Guide
Coverage Guide
Understand liability, UM/UIM, injury protection, physical damage, deductibles, and what the numbers on your auto policy actually mean.
Protecting Others
Liability coverage — what you owe when you cause an accident
Liability coverage pays for injuries and property damage you cause to other people in an accident. It does not cover your own vehicle or your own injuries.
Bodily Injury Liability
Pays for medical expenses, lost wages, and other damages for people injured in an accident you caused.
- Applies to injuries to other drivers, passengers, and pedestrians
- Covers legal defense costs if you are sued
- Does not cover your own injuries
Property Damage Liability
Pays for damage you cause to another person's vehicle or property.
- Covers the other vehicle, fences, buildings, and other property
- Does not cover damage to your own vehicle
Understanding split limits
Auto liability is often expressed as three numbers, such as 100/300/100. Here is what those numbers mean:
100K
Per person
Maximum paid for one person's bodily injury in a single accident
300K
Per accident
Maximum paid for all bodily injuries combined in a single accident
100K
Property damage
Maximum paid for property damage in a single accident
Protecting Yourself
UM/UIM, PIP, and medical coverage
Not every driver on the road carries adequate insurance. These coverages help protect you when the other driver cannot.
Uninsured Motorist (UM)
Covers your injuries and, in some states, property damage when you are hit by a driver who has no insurance.
- Applies to hit-and-run accidents in many states
- Available for bodily injury and sometimes property damage
- State availability and requirements vary
Underinsured Motorist (UIM)
Covers the gap when the at-fault driver has insurance, but not enough to cover your losses.
- Applies when the other driver's limits are exhausted
- Your UIM limits interact with the at-fault driver's limits — ask your agent how this works
- State availability and requirements vary
Personal Injury Protection (PIP)
Covers medical expenses and sometimes lost wages for you and your passengers, regardless of fault. Available in no-fault states.
- Required in some states, optional in others
- May cover medical bills, lost wages, and other expenses
- Coverage structure varies significantly by state
Medical Payments (MedPay)
Covers medical expenses for you and your passengers after an accident, regardless of fault. Available in non-no-fault states.
- Typically a smaller limit than PIP
- Covers medical bills regardless of who caused the accident
- Does not cover lost wages
Protecting the Vehicle
Physical damage coverage
Collision
Pays for damage to your vehicle when it collides with another vehicle or object, regardless of fault.
- Subject to your deductible
- Covers your vehicle only — not the other vehicle
- May not be required if your vehicle is paid off
Comprehensive
Pays for damage to your vehicle from non-collision events such as theft, weather, fire, or hitting an animal.
- Subject to your deductible
- Covers events outside your control
- Often required by lenders while a vehicle is financed
Glass Coverage
Covers windshield and glass damage. Some policies include glass with comprehensive; others offer a separate glass endorsement.
- Some carriers offer zero-deductible glass coverage
- Ask whether your policy covers glass separately or under comprehensive
GAP / Loan-Lease Coverage
Covers the difference between what you owe on a financed or leased vehicle and what the insurance company pays if the vehicle is totaled.
- Relevant when you owe more than the vehicle's current value
- Often available through the lender or as a policy endorsement
- Worth considering on newer financed vehicles
Deductibles
Your deductible is the amount you pay out of pocket before insurance pays on a physical damage claim. A higher deductible lowers your premium but means more out-of-pocket cost when something happens. Choose a deductible you could comfortably pay without financial hardship.
Everyday Coverage
Convenience add-ons
These coverages are designed for smaller, more manageable expenses. They can be worth having — but they are secondary to the protection coverages above.
Rental Reimbursement
Covers the cost of a rental vehicle while your car is being repaired after a covered loss.
- Subject to a daily and total limit
- Only applies when the loss is covered under your policy
Roadside Assistance
Covers towing, flat tire service, jump starts, and lockout assistance.
- Helpful for minor inconveniences
- May duplicate coverage you already have through a membership or credit card
Liability Limit Structure
Split limits vs. Combined Single Limit
Liability limits are not only about how much coverage you carry. How the limit is structured matters too.
Split Limit Example
100 / 300 / 100
Three separate limits that apply independently to a covered accident:
- $100,000
Per person
Maximum bodily injury liability for any one injured person in a covered accident
- $300,000
Per accident
Maximum bodily injury liability for all injured people combined in one covered accident
- $100,000
Property damage
Maximum property damage liability for one covered accident
These are separate limits. The amounts cannot simply be added together and treated as one $400,000 pool of liability coverage.
Combined Single Limit Example
$300,000 CSL
A Combined Single Limit, or CSL, provides one combined liability limit for covered bodily injury and property damage arising from an accident, rather than dividing the coverage into separate per-person, per-accident, and property-damage limits.
Combined Single Limit is about flexibility.
The full $300,000 is available for covered bodily injury and property damage arising from an accident, subject to policy terms — without a separate per-person sublimit reducing what can be paid for one seriously injured person.
One person is seriously injured
How the limit structure affects what is available for that one person:
100/300/100 Split Limit
The bodily injury payment for that one person is generally limited to $100,000 — even though the policy carries a $300,000 bodily injury per-accident limit. The per-accident limit only matters when multiple people are injured.
$300,000 Combined Single Limit
There is no separate per-person bodily injury sublimit. The combined limit can provide more flexibility for covered bodily injury and property damage arising from that accident, subject to the policy terms. A $300,000 CSL may provide substantially more available protection for one seriously injured person than a 100/300/100 split-limit policy.
The BCM360™ perspective on liability
Most people naturally focus on what insurance will pay to repair their car. BCM360™ also looks closely at the liability limit protecting everything else they have worked to build. One severe liability claim can matter far more financially than a smaller property loss.
Higher split limits can still be appropriate, and a Combined Single Limit is not automatically right for every customer. Available limits and policy structures vary by insurance company. The goal is to understand what you are actually buying — not just what you are paying.
When comparing auto quotes, look at:
Important
Don't compare premium alone.
Two quotes with similar premiums can be very different policies.
Liability limit structure, UM/UIM protection, injury benefits, physical damage coverage, and endorsements can all differ significantly between policies at similar price points. Understanding what you are actually buying — not just what you are paying — is the goal.
BCM360™ is designed to help you understand your current coverage, identify potential gaps, and compare options based on what actually fits your situation — not just the lowest price.
Not sure where you stand?
You don't have to figure it out alone.
I'll take a look at what you currently have, explain what I see in plain English, and help you understand your options. No pressure to switch.
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