Auto Insurance - North American Mutual

Auto Insurance Coverages

Explore what each type of coverage protects

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Liability

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Uninsured Motorist

Uninsured Motorist

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Medical Payments

Medical Payments

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PIP (Personal Injury)

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Collision

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Comprehensive

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Towing and Labor

Towing & Labor

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Rental Reimbursement

Rental Reimbursement

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Auto Insurance General Information

Auto insurance provides financial protection against damages or injuries resulting from car accidents, theft, or other covered events. It typically includes coverage options like liability, collision, and comprehensive to help cover repair costs, medical bills, or legal expenses. Most states require a minimum level of auto insurance to drive legally.

Liability Insurance

Liability coverage is one of the most important components of an auto insurance policy, and it’s required in nearly every state. It protects you financially if you’re found responsible for causing an accident that results in injury to others or damage to their property. Without liability insurance, you could be personally responsible for medical bills, vehicle repairs, legal fees, and other associated costs, which can be financially devastating.

Auto liability coverage is typically split into two parts: Bodily Injury Liability and Property Damage Liability. Bodily Injury Liability helps cover the medical expenses, lost wages, and even pain and suffering of the other party if you cause an accident. Property Damage Liability pays for repairs to someone else’s car, building, or any other physical property you damage in a covered event.

While each state sets its own minimum coverage requirements, many drivers choose to carry limits higher than the minimums to ensure better financial protection. Accidents can be unpredictable, and the costs can quickly exceed minimum coverage limits. By carrying higher liability limits, you reduce your risk of having to pay out of pocket in the event of a serious accident. START A QUOTE⮕

Uninsured Motorist

Uninsured Motorist Coverage (UM) is designed to protect you if you’re involved in an accident with a driver who doesn’t have any auto insurance. Even though most states require drivers to carry liability insurance, many still operate vehicles without coverage, leaving others at risk. UM steps in to cover your medical expenses, lost wages, and other damages when the at-fault driver can’t.

There’s also Underinsured Motorist Coverage (UIM), which provides protection when the other driver does have insurance, but not enough to cover the full cost of your injuries or property damage. In serious accidents, medical bills and repair costs can quickly exceed basic liability limits. UIM helps bridge that gap, giving you added financial security.

Together, UM and UIM ensure that you’re not left paying the price for someone else’s lack of coverage. These coverages are especially valuable in hit-and-run scenarios, where the at-fault driver can’t be identified. In many states, this protection can be added to your policy for a relatively low cost, making it a smart investment for peace of mind. START A QUOTE⮕

Medical Payments (Medpay)

Medical Payments Coverage, often referred to as MedPay—is an optional part of auto insurance that helps pay for medical expenses resulting from a car accident, regardless of who is at fault. It can cover costs like ambulance rides, hospital visits, surgery, X-rays, and even funeral expenses. This coverage applies to you, your passengers, and in some cases, any family members driving or riding in other vehicles.

One of the key advantages of Medical Payments Coverage is that it provides quick access to funds without needing to wait for a liability decision or settlement. It works alongside your health insurance and can help cover deductibles or co-pays, providing an extra layer of protection. MedPay is especially useful for drivers without comprehensive health coverage or those with high out-of-pocket costs.

While not required in most states, Medical Payments Coverage is relatively affordable and can offer peace of mind knowing you’ll have financial support for immediate medical needs after an accident. START A QUOTE⮕

Personal Injury Protection (PIP)

Personal Injury Protection (PIP) is a type of auto insurance coverage that pays for medical expenses, lost wages, and other related costs after a car accident, regardless of who was at fault. Often referred to as “no-fault insurance,” PIP is required in some states and optional in others, depending on local laws. It’s designed to ensure quick payment for injuries without the need for lengthy legal or insurance battles.

In addition to covering medical bills, PIP can also pay for rehabilitation, funeral expenses, and essential services like childcare or house cleaning if your injuries prevent you from handling daily responsibilities. Unlike Medical Payments Coverage, which strictly handles medical expenses, PIP offers broader support for financial losses related to your recovery.

PIP is especially valuable for those without health insurance or for families concerned about income loss following an accident. It serves as a safety net that helps maintain stability while you recover physically and financially. START A QUOTE⮕

Collision Coverage

Collision coverage protects your vehicle if it’s damaged in an accident involving another car or an object, such as a tree, guardrail, or building. This coverage helps pay for repairs or replacement of your car, regardless of who is at fault. It’s especially important if you have a newer or more valuable vehicle, as repairs can be costly.

Collision coverage typically comes with a deductible—the amount you pay out of pocket before insurance kicks in. Choosing a higher deductible usually lowers your premium but means more upfront costs if you file a claim. This coverage ensures that unexpected collisions don’t leave you with a big repair bill or force you to pay cash to replace your car. START A QUOTE⮕

Comprehensive Coverage

Comprehensive coverage protects your vehicle from damage caused by events other than collisions. This includes incidents like theft, vandalism, fire, natural disasters (such as hail or floods), falling objects, and animal collisions. Essentially, it covers many risks that are out of your control and not related to a crash with another vehicle.

Like collision coverage, comprehensive typically has a deductible you must pay before the insurance covers the rest. It’s especially valuable for drivers who park their cars outside or in areas prone to storms or theft. Adding comprehensive coverage gives you peace of mind knowing that a wide range of potential damages won’t result in costly repairs or a total loss without financial help. START A QUOTE⮕

Towing and Labor

Towing and Labor coverage is an optional add-on to your auto insurance that helps cover the costs if your vehicle breaks down or gets stuck. This coverage pays for services like towing your car to a repair shop, jump-starting a dead battery, changing a flat tire, or delivering fuel if you run out on the road.

It’s especially useful if you travel frequently or drive in areas where roadside assistance might be hard to access quickly. Instead of paying out of pocket for these unexpected expenses, towing and labor coverage provides peace of mind and convenience, helping you get back on the road faster without extra hassle or cost. START A QUOTE⮕

Rental Reimbursement

Rental Reimbursement coverage helps pay for the cost of a rental car if your vehicle is being repaired due to a covered accident. This coverage ensures you stay mobile and don’t have to disrupt your daily routine while your car is in the shop.

Typically, rental reimbursement policies cover a daily rental fee up to a specified limit and for a set number of days. It’s a valuable add-on that can save you money and hassle, especially if you rely heavily on your vehicle for work, family, or errands. START A QUOTE⮕

Liability

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Uninsured/Underinsured Motorist

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Medical Payments

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Personal Injury Protection (PIP)

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Collision

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Comprehensive

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Towing & Labor

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Rental Reimbursement

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Important Additional Information

In addition to standard coverages, many auto insurance policies offer a variety of additional options to tailor protection to your specific needs. These can include gap insurance, which covers the difference if your car is totaled and you owe more than its current value; custom equipment coverage for aftermarket parts or upgrades; and roadside assistance for emergencies like lockouts or tire changes. Other popular add-ons include accident forgiveness, which helps prevent your rates from increasing after a first accident, and new car replacement coverage that pays to replace a totaled vehicle with a new one of the same make and model. These options give drivers greater flexibility and peace of mind beyond the basics.

Some auto insurance policies also offer specialized coverages like Accidental Death & Dismemberment (AD&D), which provides a lump-sum payment if you or your passengers suffer serious injury or death in a covered accident. This can help ease financial burdens during difficult times, covering expenses not typically included in standard medical or liability policies. Additionally, depending on your state, you may encounter different legal frameworks such as tort and no-fault systems, which affect how claims and lawsuits are handled after an accident. Understanding whether your state follows a tort system can help you know your rights for pursuing compensation and how your insurance responds in various scenarios. START A QUOTE⮕

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Legal Disclaimer
The information provided on this website is intended for general informational purposes only and does not constitute legal, financial, or insurance advice. While North American Mutual strives to keep the information accurate and up to date, we make no guarantees regarding the completeness, accuracy, or applicability of any information provided. Insurance policies, coverages, terms, and conditions can vary significantly between carriers, states, and individual business needs. Any examples of coverage are for illustrative purposes only and may not reflect actual policy terms or available options.

Visiting this site or contacting North American Mutual does not create an agent-client or insured relationship. Coverage cannot be bound or altered without confirmation from a licensed insurance representative. All insurance products are subject to underwriting approval, availability, and applicable state and federal regulations.

We recommend that you speak directly with one of our licensed agents to review your specific risks and coverage needs. North American Mutual is not responsible for any actions taken based on the content found on this site, nor for any errors or omissions contained herein. Always consult with a qualified insurance advisor or legal professional for advice tailored to your business situation.

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