What Does Car Insurance Cover?
Get the coverage you need, and hit the road with confidence.
Car insurance doesn’t have to be confusing.
In this guide we’re breaking down the different coverages offered by Lemonade Car insurance, in plain English. After that, we’ll go through some real scenarios to see how different types of car insurance coverage would come in handy.
A Lemonade Car policy can cover you for damage to your car caused by accidents, vandalism, extreme weather, fire, and falling objects, and a whole lot more—but keep in mind that your specific protection will depend on how you build your policy when you get a quote.
The good news is that Lemonade Car coverage is super customizable. You’ll be able to see and make changes to your coverage, limits, deductibles, start date, and more.
Just a refresher: A “limit” in regard to your car insurance policy refers to the maximum amount your insurer would pay out on a certain type of claim.
For example, for bodily injury liability coverage, Oregon drivers limits are written like so: $25,000/$50,000. These numbers reflect that you carry $25,000 of bodily injury coverage per person, and $50,000 of bodily injury coverage in total (for all of the people injured in an accident.) If you want to check out full details on Oregon’s insurance requirements, we’ve got you covered.
It’s also important to keep in mind that required coverages and minimums vary by state. But you’ll probably want more coverage than the bare bones version you’re required to get. So without any further ado, let’s get into Lemonade’s no-nonsense guide to car insurance coverage!
Here are the coverages we’ll be tackling:
Important coverages to know about
Medical payments coverage (MedPay)/Personal injury protection (PIP)
Underinsured motorist coverage
Lemonade Car extras
Temporary transportation coverage
Important coverages to know about
One important thing to note is that the car insurance policy you customize is actually a collection of different coverages, each with their own focus, and each with their own limits and, sometimes, deductibles.
When you’re pondering your ideal car insurance policy, you might just ask yourself, “what can keep me, my car, and my wallet safe from the unpredictable world around me?”
To answer that question (and to start building your policy): Keep your eyes peeled for these coverages, as they could help you save time, money, and a whole lot of aggravation in the long run. (Depending on where you live, some of them might not be available.)
But what do these different coverages all mean?
Liability coverage
If you’re a law-abiding driver (and we hope you are), you’re required in almost every state to have liability coverage to be on the road.
If you have renters or homeowners insurance, you might already be familiar with this type of coverage. In car insurance, liability coverage is broken down into two parts: bodily injury liability and property damage liability.
- Bodily injury liability coverage. If you accidentally injure someone else who is not a passenger in your car, this will cover their medical bills
- Property damage liability coverage. If you damage someone’s car or property, this will cover the cost to repair or replace what was damaged
Example: You run a red light and T-bone a car at an intersection. The other car has significant damage, and the driver suffers a mild concussion. Your property damage liability coverage will cover the costs of the other car’s repairs, and your bodily injury liability coverage will cover the medical bills for the other driver up to the limits you set for your policy.
Collision coverage
Collision coverage helps pay to repair or replace your own car if it’s damaged in an accident with another vehicle or object, especially if you’re the one who’s responsible. If you’re at fault for the damages to your car, your collision coverage will kick in to cover repairs, and get you back on the road.
Let’s say you aren’t paying attention and you hit a road partition in the middle of the highway. No other vehicles are involved, but your car is pretty messed up. The repairs would be covered by your collision coverage, but you’ll still need to pay the deductible that’s listed in your policy.
Comprehensive coverage
Also known as “act of god” coverage, comprehensive insurance coverage helps pay to fix damage to your car or possibly replace it from an incident that wasn’t a car accident.
That means if your car is stolen, vandalized, or has an unexpected rendezvous with an animal, for example, comprehensive coverage kicks in to repair or replace your car.
Picture this: You park your car on the street, and gale force winds uproot a tree, which then falls on and totals your car. Replacing your car would be covered by your comprehensive coverage, minus your deductible.
Medical payments coverage (MedPay)/Personal injury protection (PIP)
It’s not pleasant to think about, but if you or other passengers in your car get hurt in a car accident, this coverage comes into play, regardless of who was at fault.
Depending on where you live, you may have the option to add either personal injury protection (PIP) or medical payments (MedPay) coverage to your car insurance policy.
MedPay covers some medical expenses, including, but not limited to:
- Ambulance fees after an auto accident
- X-rays, surgeries, or a prostheses
- Health insurance co-pays
- Doctors and hospital visits
- Nursing services
- Funeral services
PIP is basically the same as MedPay, but it can also include:
- A percentage of your lost wages as a result of your injuries
- Childcare or house cleaning expenses
Another factor that distinguishes these coverages is that PIP covers medical expenses from a car accident no matter who is at fault.
Imagine that you drove off the side of the road and hit a tree. You end up breaking your wrist, and require an X-ray and a cast. Your medical costs will be covered by PIP or MedPay coverage.
Uninsured motorist coverage
As we said earlier, in order to be a law-abiding driver, you need to have some sort of liability coverage. But unfortunately, not everyone follows the rules. If you are injured or your car is damaged by an uninsured driver, you could be left paying a hefty bill at the body shop or at the hospital.
This coverage is broken down in two ways:
- Uninsured motorist bodily injury coverage (UMBI). This coverage will cover medical bills and lost wages related to injuries caused by an uninsured driver.
- Uninsured motorist property damage coverage (UMPD). If you get into a car accident with an uninsured driver, this coverage will cover the costs of repairing your vehicle.
Example: An uninsured driver makes an illegal right turn, causing a car accident, which damages your side door. Your uninsured motorist property damage would cover the repair costs.
Underinsured motorist coverage
Sometimes, even if an at-fault driver does have liability coverage, the coverage isn’t enough to cover major expenses after an accident. In order to avoid paying the difference in repair and medical costs, you would need to purchase underinsured motorist coverage.
This coverage is also broken down in two ways, the same as uninsured motorist coverage.
- Underinsured motorist injury coverage (UIMBI). This coverage will cover remaining medical bills and lost wages related to injuries caused by an underinsured driver up to your UIMBI policy limits.
- Underinsured motorist property damage coverage (UIMPD). If you get into a car accident with an underinsured driver, this coverage will cover the remaining costs of repairing your vehicle up to your UIMPD policy limits.
Example: An underinsured driver makes an illegal right turn and ends up wracking up $20,000 in damages to your car. They only have $10,000 in property damage liability coverage, so your underinsured motorist property damage coverage would kick in to cover the remaining $10,000.
Lemonade Car extras that are great to have
For Lemonade Car drivers, there are a few extra add-ons and perks to help you drive with confidence, and we’re excited to share them with you. (These can be a bit different depending on where you live.)
Temporary transportation coverage
Lemonade Car will cover almost any type of temporary alternative transportation for up to a month while you’re waiting for your car to be repaired following a covered accident. This includes Uber, Lyft, rental car expenses, or even public transportation like buses or trains, up to your daily limit.
If you have both collision and comprehensive coverage on your car, you’ll get the option of selecting temporary transportation coverage for your car as well.
Example: You get into an accident and your car needs to be in the shop for repairs. In the meantime, you decide to Lyft to and from work. Your Lyft fees would be covered by your Lemonade temporary transportation coverage up to the limit on the policy.
Roadside assistance
Roadside assistance provides towing and other emergency roadside services like lockout services, flat tire replacement, jumpstarts for dead batteries, fuel delivery, winching and battery service if your car breaks down.
Roadside assistance is an optional coverage that you can include for each car on your policy. You’ll be eligible for roadside services up to 3 times during a 6-month term for each car that you cover with roadside assistance.
Just make sure to download the Lemonade app. That way you can request roadside assistance—and we can send help—in a flash.
Example: Your car’s battery dies in the middle of the road. You request roadside assistance on your Lemonade app, and one of Lemonade’s roadside partners is dispatched to help you. When they arrive, they give you a jump and you can continue on your way.
Some real-world examples of how Lemonade Car works
We understand that car insurance can be confusing, so we’ve broken down several common, but perhaps less cut-and-dry scenarios where various coverages would come in handy.
SCENARIO: I’m driving and I hit a deer. The road is empty—no other cars involved—but my car is really messed up.
Is it covered? Yes!
Which part of my policy? Comprehensive coverage
Anything else I need to know? Nope, just go ahead and file a claim on the Lemonade app to start the repair process, and request a tow if needed. If the deer has been injured, call the authorities so they can dispatch someone to assist.
A deer jumps in front of my car out of nowhere and I swirl to avoid hitting the deer, which immediately causes me to crash into another car.
Is it covered? Yes
Which part of my policy? Collision coverage to repair your car, and liability coverage to repair the other person’s car
Anything else I need to know? Nope, just file a claim on the Lemonade app.
My car is broken into and the vehicle is stolen.
Is it covered? Yup!
What part of my policy? Comprehensive coverage will help replace your car if it’s not recovered.
Anything else I need to know? Check your state’s requirements about how long you need to wait after filing a police report for a stolen vehicle before you can file a claim. The sooner you tell the authorities your car has been stolen, the more likely they are to find it. Also, the same plug-in device that lets us track your mileage with precision can help us locate and recover your stolen vehicle.
I’m not paying attention and I run into a highway divider, seriously messing up my car…
Is it covered? Yes
What part of my policy? Collision coverage (for your car’s damage) and property damage liability (for the poor highway divider).
Anything else I need to know? Nope, just file a claim on the Lemonade app.
I rear-end someone else’s car, damaging my car and their car, and hurting the other driver.
Is it covered? Yes
What part of my policy? Your collision coverage will pay for repairs to your car, your property damage liability coverage will pay for repairs to the other car, and your bodily injury liability coverage will pay for the other driver’s medical expenses.
Anything else I need to know? Nope, just file a claim on the Lemonade app.
A thief smashes my window and steals my car radio and a suitcase full of clothes. What happens—can I get compensated for my window, my radio, and my stuff?
Is it covered? Yes and no (and yes!).
What part of my policy? Your comprehensive coverage will cover the costs to repair your windows and replace your car radio. Car insurance won’t cover your clothing, but your renters or homeowners insurance probably will.
Anything else I need to know? Nope, just file a claim (or two, if you have renters or homeowners insurance as well) on the Lemonade app.
How to file a Lemonade Car claim
Easy breezy—everything happens within the Lemonade app. Just hit the ‘File A Claim’ button and you’re on your way. Learn more about how our super claim resolution works here.
How much does Lemonade Car cost?
Your premiums will take various factors into consideration, including your age, insurance score, and location, as well as the type of car you drive. We’re proud of our competitive rates, and you can read more about how we price policies here.
Meanwhile, if you’re really curious… why not just get a Lemonade Car quote? It’s free, and only takes a few minutes—click the button below to get started.
A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them.represent their own views, and Lemonade assumes no responsibility for them. Coverage may not be available in all states.
