Auto Insurance 101- The Basics

Basic auto protection helps you or any one driving your car from damages to a car or property, injures someone or all of the above. States have mandatory and sometimes other coverages which will be covered below.

Remember state required minimums may not cover the costs of a serious accident so keep that in mind when shopping for your coverage.

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Mandatory Coverage

Car owners are required to carry the following.

Bodily Injury: This is your liability and covers costs associated with injuries or death to another driver.

Property damage: This is the liability  and covers damage to another vehicle or property, like a building, utility pole or fence.

Frequently Required Coverage

Some states require the following as well.

Uninsured Motorist Coverage: Reimburses you when an accident is caused by an uninsured motorist or in the case of a hit and run.

Personal Injury Protection, this provides reimbursement for injuries to you or your passengers. It also helps with lost wages and other related expenses.

While these may not be required keep them in mind for greater peace of mind and better protection.


Now that you understand mandatory requirements, let’s talk about your car.

Collision-This coverage reimburses you for damages to your car from another car, tree or guardrail. This does not protect you from mechanical failure, it does cover potholes and wrecks.

Comprehensive, is against theft, damage from flood or fire or falling rocks and hail.


For thos leasing, dealers will require collision and comprehensive. Now this is based on what it’s worth not what you paid. The difference is called the gap.  Check with your dealer as gap insurance is normally rolled into your lease payments.

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Auto insurance covers you or anyone you give permission to drive your car. Your personal auto will not provide coverage if you use it for commercial purposes like pizza delivery, uber or lyft.

For more information contact ABM insurance and Benefit services at 800-362-2809 or visit our website at