Skip to main content

How To Read Your Auto Insurance Policy

By June 18, 2021

If you drive, you need car insurance; however, most people buy the best policy for their budget without knowing what they’re actually paying for. We’re here to clear up the confusion. Read on for a simplified version of your auto insurance policy.

What Does My Auto Insurance Mean?

Your insurance agent is the best source to find a policy that works for you, as car insurance policies can vary. Here are a few items you may see on your policy:

Bodily Injury & Property Damage Liability

If you see this coverage on your auto insurance policy, it means the insurer agrees to pay damages if you injure someone or damage their property in an auto accident.

For example, if your coverage states “$50,000 each person/$100,000 each accident,” this means that your insurance will cover up to $50,000 for each person injured and up to $100,000 for the accident.

Medical Payments

The medical payments coverage will provide a limited amount of coverage for any medical expenses you or your passengers may incur as a result of an accident, regardless of who is at fault.


When you think about auto insurance, you probably envision only needing it in case of collision with another vehicle. But, what about weather-related damage?

In the event of hail damage or any other kind of risk not involving an automobile collision, comprehensive coverage will insure you. The National Association of Insurance Commissioners also notes theft or fire could be covered under comprehensive. This coverage will pay to repair your vehicle, subject to a separate deductible.

Make sure your home is protected, too! See how a homeowner’s policy can help. >>


Here’s the big one: Collision coverage. As you could have guessed, collision coverage will provide protection to replace or repair your vehicle, subject to a deductible, regardless of fault.

Uninsured Motorist Property Damage and Uninsured Motorist Bodily Injury

You’re responsible and carry auto insurance. Good for you! (It’s the law, so thanks for also being a law-abiding citizen.) Some people are unfortunately not law-abiding citizens and frequently drive without auto insurance. What happens when those people crash into your responsibly-driven car?

Uninsured Motorist Property Damage

Uninsured motorist property damage will cover your car in the event you’re in an accident with another driver who doesn’t carry liability coverage.

Uninsured Motorist Bodily Injury

Uninsured motorist bodily injury will cover you in the event you’re in an accident with another driver who doesn’t carry liability coverage.

Read more about our types of vehicle coverage here. >>

What If I Don’t Have Car Insurance?

Auto insurance is something you absolutely must have if you drive a vehicle, regardless of whether that vehicle is yours. With a lot of different companies and coverage choices to choose from, auto insurance can be confusing.

Before you select a policy, ensure you understand what you are getting. Your insurance agent can work with you to make sure you understand what your policy entails and are available to answer any questions you may have along the way.

Contact one of Block Insurance’s agents to start your free quote today to help you get the best coverage at a rate you can afford.