What They Don't Teach You in High School

8 Coverages Liability Coverage (Minimum required) Bodily Injury & Property Damage Liability Coverage - Better known as BI & PD. Liability insurance that helps pay for the injuries and damage to others from accidents that are your fault. Additional Coverage There maybe other coverages you may need to discuss with your agent or company, such as: Medical Payment Expenses - Covers limited medical costs for you or others in your car when you are in an accident. Uninsured/Under Insured Motorist Coverage (UMC) - Provides coverage for a policyholder involved in a collision with a driver who does not have liability insurance or whose liability limits are too low to pay for all the damage. Comprehensive and Collision - Are not state mandated coverages, but if there is a loan on the vehicle you drive you may be required by the loan or leasing company to provide evidence of these coverages. Comprehensive Coverage - Pays for damage to your car caused by something other than a collision (Such as damage by a natural disaster, vandalism, theft, fire, or falling objects). Collision Coverage - Pays for damage to your car caused by physical contact with another vehicle or an object (such as a tree, rock, guardrail, building or person). Gap Coverage - This pays the difference between the fair market value of your car and the balance you owe on your loan or lease. Special Equipment Coverage - Most companies charge extra for any special equipment such as customized parts, special wheels you add to your vehicle for it to be covered. Ask you agent or company to explain.