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Coverage levels

Vehicle insurance can cover some or all of the following items:


  • The insured party (medical payments)
  • Property damage caused by the insured
  • The insured vehicle (physical damage)
  • Third parties (car and people, property damage and bodily injury)
  • Third party, fire and theft
  • In some jurisdictions coverage for injuries to persons riding in the insured vehicle is available 
  • without regard to fault in the auto accident (No Fault Auto Insurance)
  • The cost to rent a vehicle if yours is damaged.
  • The cost to tow your vehicle to a repair facility.
  • Accidents involving uninsured motorists.

Different policies specify the circumstances under which each item is covered. For example, a vehicle can be insured against theft, fire damage, or accident damage independently.

If a vehicle is declared a total loss and the vehicle's market value is less than the amount that is still owed to the bank that is financing the vehicle, GAP insurance may cover the difference. Not all auto insurance policies include GAP insurance. GAP insurance is often offered by the finance company at time the vehicle is purchased.