Most drivers carry auto insurance without ever fully understanding what they’re actually protected from. After a car accident, that lack of clarity can create confusion, unexpected financial exposure, and unnecessary stress — especially when medical bills and repair costs start piling up. Knowing exactly what your insurance covers (and what it doesn’t) is one of the smartest moves you can make to protect yourself and your family.

Getting a written summary of your policy from your insurance agent is a simple step that can make a tremendous difference. Having this summary with you — in your glove box, your email, or your phone — can be incredibly helpful if you’re ever involved in an accident. It clearly outlines your coverages, exclusions, and claim processes, making it easier to understand what costs may be covered right away.

Below is a clear, practical explanation of the major auto insurance coverages you should understand — and why they matter.

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1. Liability Coverage: The Foundation of Every Auto Policy

Liability coverage is required in most states, and it protects you when you are at fault for a crash. It includes two key components:

Bodily Injury Liability

Pays for the other driver’s medical expenses, lost wages, and pain and suffering if you caused the accident.

Property Damage Liability

Covers repair or replacement costs for the other driver’s vehicle or property.

Why it matters:
Liability does not cover your own injuries or vehicle damage. If your liability limits are too low, you could be personally responsible for the difference — meaning your savings, income, or assets could be at risk. This coverage is not optional in Arizona.

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2. Uninsured Motorist (UM): Protection When the Other Driver Has No Insurance

Despite legal requirements, thousands of drivers operate without insurance. If an uninsured driver hits you, UM coverage steps in.

UM covers:

• Your medical bills

• Lost wages

• Pain and suffering

• Long-term disability

Why it matters:
If the at-fault driver has zero insurance, you could be stuck paying for your own injuries without UM coverage. It ensures you’re not financially punished for someone else’s irresponsibility.

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3. Underinsured Motorist (UIM): When the Other Driver’s Limits Aren’t Enough

This coverage is one of the most valuable protections you can carry.

UIM applies when:

• The at-fault driver has insurance

• Their limits are too low to cover your full damages

Example:
Your medical bills total $75,000.
The at-fault driver’s policy limit is $25,000.
UIM may cover the remaining $50,000.

Why it matters:
Many drivers carry only minimum limits, which often fall short in moderate or severe injury cases. UIM fills that gap.

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4. Medical Payments (MedPay): Immediate Support for Early Medical Bills

MedPay is optional but extremely helpful in the first days after a crash.

MedPay covers:

• Emergency room visits

• Ambulance bills

• Initial medical exams

• Copays and deductibles

And it pays regardless of fault.

Why it matters:
MedPay gets medical bills off your plate quickly while larger claims are being evaluated.

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5. Collision Coverage: Protecting Your Vehicle After an Accident

Collision coverage pays for damage to your vehicle following a crash, when you caused the accident.

Collision covers:

• Crashes with another vehicle

• Crashes into stationary objects

• Rollovers

Why it matters:
If you rely on your car, collision coverage prevents long delays, out-of-pocket expenses, and unexpected financial strain. If the other driver ends up not having insurance at the time of the crash, this coverage will allow you to repair or replace your vehicle.

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6. Comprehensive Coverage: Protection From Non-Collision Events

Comprehensive coverage handles damage caused by events other than a collision.

Comprehensive covers:

• Theft

• Vandalism

• Weather damage

• Falling objects

• Animal collisions

• Fire

Why it matters:
It protects your vehicle from unpredictable or unavoidable events that have nothing to do with driving.

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7. Property Damage (When Someone Else Hits You)

When another driver causes the accident, their property damage coverage pays to repair your vehicle. Or when you cause a collision, this covers the damage to the other vehicle. In Arizona, the minimum coverage is $15,000 and this coverage is not optional.

Why it matters:
Understanding this coverage prevents confusion during the claims process and helps you know which insurer should cover what.

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8. Why Reviewing Your Policy Regularly Matters

Your coverage needs to change over time. Reviewing your policy once a year ensures you stay fully protected.

Reasons to review:

• New vehicle purchase

• Added drivers in your household

• Rising medical and repair costs

• Changes in driving habits or commute

• Desire for stronger financial protection

Many drivers discover gaps only after a crash — when it’s too late to fix them.

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Pro Tip: Keep a Policy Summary Accessible

Store your coverage summary in:

• Your glove box

• Your email

• A notes app

• A cloud drive

When an accident happens, immediate clarity reduces stress and speeds up decision-making.

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Final Thoughts

Understanding your auto insurance isn’t just about compliance — it’s about protecting your health, finances, and long-term stability after a crash.

Coverages like UM, UIM, MedPay, collision, and comprehensive determine how smoothly you recover and how much financial support is available to you. Taking the time to understand your policy now is one of the best investments you can make in your own protection.

If you’ve been in an accident and need help navigating your insurance or determining what coverage applies, Loefgren Law is here to guide you every step of the way.