What Auto Insurance Covers—and What It Doesn’t
Auto insurance is essential for protecting your finances after an accident, but many drivers don’t fully understand what their policy actually includes. Knowing what’s covered—and what isn’t—can help you choose affordable auto insurance that still meets your needs. Knabusch Insurance offers affordable auto insurance in Ann Arbor, MI, Monroe, MI, Newport, MI, Carleton, MI, Temperance, MI, Ida, MI and surrounding areas.
What Auto Insurance Covers
Most standard auto insurance policies are made up of several key coverage types:
Liability Coverage: This is required in most states and covers injuries and property damage you cause to others in an accident. It does not cover your own vehicle or medical bills.
Collision Coverage: Pays for damage to your car after a collision with another vehicle or object, regardless of who is at fault.
Comprehensive Coverage: Covers non-collision events such as theft, vandalism, fire, falling objects, or weather-related damage like hail or floods.
Medical Payments or Personal Injury Protection (PIP): Helps cover medical expenses for you and your passengers after an accident, depending on your state.
Uninsured/Underinsured Motorist Coverage: Protects you if you’re hit by a driver who has little or no insurance.
Choosing the right combination of these options allows you to balance protection with affordable auto insurance premiums.
What Auto Insurance Doesn’t Cover
Despite its broad protection, auto insurance has limits. Most policies do not cover:
Routine maintenance and wear and tear, such as brake replacements or engine issues
Mechanical breakdowns unrelated to an accident
Personal belongings stolen from your car (these may be covered under renters or homeowners insurance)
Using your car for business purposes, like ridesharing or deliveries, unless you have special coverage
Intentional damage or illegal activities
Why Understanding Coverage Matters
Understanding what auto insurance covers helps you avoid surprises when filing a claim. The cheapest policy isn’t always the best—true affordable auto insurance provides adequate protection at a reasonable cost. Review your policy regularly and adjust coverage as your vehicle, driving habits, or financial situation changes. Call us anytime if you need more information.