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Step 1
Look at the section on collision. There's normally an amount for the deductible. This is what you would pay if you cause an accident that involves hitting something or someone and it damages your car. The collision coverage is only for the vehicle that you drive. It covers the cost of replacement or repair of the vehicle.
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Step 2
Find the area marked comprehensive. Comprehensive coverage normally has a deductible. Comprehensive coverage covers your vehicle for everything that isn't a collision. If your car gets dented in a hailstorm, catches fire, is vandalized or is stolen, comprehensive coverage pays for the damage or replacement after you pay the deductible.
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Step 3
See what your limits of liability include. Liability pays the other driver if you cause an accident. Sometimes the limits are a single number and sometimes you have split limits. If you see a number that is similar to 50/100/10, it means that the insurance company pays a maximum of 50,000 to any 1 person injured, 100,000 per accident and 10,000 for property damage. If you have single limit liability, it might show 100,000. That money pays for any type of liability claim brought against you, and the insurance company doesn't divided it by category or per person.
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Step 4
Understand that you have medical payments that don't t require fault. If you aren't at fault but there's an accident where someone in your car is injured, then medical payments to others picks up their bills for the injury. It also covers you and your family, even if they're walking and are hit or riding in someone else's car. Not all states offer this type of coverage.
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Step 5
Understand the underinsured/uninsured motorist coverage. This is like a liability policy for whoever hits you. It only covers you and your car. It provides additional protection if you're not at fault and the other driver has no coverage or his liability coverage is too small to cover the damage.
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Step 6
Understand the rider that lets you rent a vehicle while you have your car fixed. This type of coverage pays a specific amount each day for car rental with an overall maximum. You need to have comprehensive and collision coverage to buy this type of rider. There's no deductible on the coverage.
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Step 7
Understand the policy on towing your car, whether you have an accident or it just stops working. There's no deductible for this coverage. You pay the towing bill and turn it into the insurance company for reimbursement. It has a limit to the amount that will be reimbursed. You need to have comprehensive and collision coverage to buy this type of rider.
