Automobile insurance policies have 3 primary coverages: property damage, bodily injury, and underinsured/uninsured motorist. It’s important to understand all of these coverages before purchasing auto insurance.

Property damage covers damage to your vehicle when in an accident. There is usually a $500-$1,000 deductible that you pay before these coverages kick in. Property damage is the most well understood and most discussed, however, it sometimes becomes the least important when injured in an accident.