Liability pays if you cause a crash and are legally responsible for the other person's damages. It also pays for a legal defense if you're sued because of the accident. Liability has two parts:

• Bodily Injury (BI) pays for costs due to injury or death to a pedestrian or person in another car. It may also cover injury costs your passengers have as long as they aren't members of your household.
• Property Damage (PD) pays for damage to another person's car or property, like fences, buildings, utility poles, signs, and trees.

Uninsured/Underinsured Motorist pays for injury-related damages such as medical bills, lost wages, or pain and suffering that you and your passengers have as a result of an auto accident. There are two parts:

• Uninsured Motorist Bodily Injury (UMBI) pays when the accident is caused by an uninsured or hit-and-run driver.
• Underinsured Motorist Bodily Injury (UIMBI) pays when the at-fault driver's BI limits are lower than your UIMBI limits.

Medical Payments pays medical and funeral expenses for you, resident family members, or passengers that are injured or die in an auto accident.

Physical Damage pays for damage to your auto. You pay for part of the loss, called a deductible. Physical damage has two separate coverages:

• Collision pays for damage caused by an accident with another car or fixed object (like a tree).
• Comprehensive (Other than Collision) pays for damage caused by events like theft, vandalism, hail, fire, falling objects, and animals.

Insurers offer a variety of add-ons that expand coverage according to policyholder preferences. Examples of these optional endorsements include towing, rental reimbursement, uninsured motorist property damage, gap protection on leased vehicles, and custom/nonfactory equipment.