Auto Insurance 101: A simple guide to coverage

June 11, 2026

Summary:

What is auto insurance? Plain and simple.
There are five types of coverage you can purchase when choosing auto insurance.
Evaluate your lifestyle situation before selecting coverage.
Get a quote for GM Insurance.

Car insurance doesn’t have to be confusing

When purchasing a new vehicle or new-to-you ride, you need to have proof of insurance before you can drive it off the lot. While you can just add your new car to your existing insurance, this might also be a good time to shop around and see if you’re getting the best deal on your car insurance.

If you’re shopping for auto insurance and feeling unsure of where to start, you’re not alone. Insurance can seem complicated, especially when you’re faced with a list of coverage options you may not fully understand.

The good news is auto insurance coverage doesn’t have to be confusing. While details vary from state to state, the basics work the same way everywhere. Once you understand what each type of coverage is designed to do, it becomes much easier to choose what makes sense for you.

What is auto insurance?

At its core, vehicle insurance can help protect you financially when something unexpected happens on the road. Whether it’s an accident, damage to your vehicle, or injuries to you or others, insurance helps cover costs that could otherwise be expensive and stressful.

Think of it as protection for both your car and your peace of mind. You hope you never need it — but it’s there to support you if you do.

Common auto insurance coverages

Liability coverage

Liability coverage helps protect you if you’re responsible for an accident that causes injury to someone else or damages their property. It typically includes bodily injury liability, which helps cover medical expenses or lost wages for others, and property damage liability, which helps pay for repairs to things like another vehicle, a fence or a building.

Collision coverage

Collision coverage helps pay to repair or replace your vehicle if it’s damaged in an accident — regardless of who was at fault. From a minor fender‑bender to a more serious crash, collision coverage can help manage repair costs that add up quickly, especially for newer vehicles.

Comprehensive coverage

Comprehensive coverage helps protect your vehicle from damage that isn’t caused by a collision. This can include theft or vandalism, fire, falling objects, or severe weather such as hail or flooding.

Uninsured or underinsured motorist coverage

This coverage helps protect you if you’re involved in an accident with someone who can’t fully cover the damage they caused. It may help with vehicle repairs, medical expenses or both.

Medical payments or personal injury protection

These coverages help pay for medical expenses for you and your passengers after an accident, no matter who was at fault.

Choosing auto insurance coverage that fits your life

With insurance, there isn’t a one-size-fits-all policy. Everyone has different needs. The best coverage for you depends on the age and value of your vehicle, how often you drive, your comfort level with out‑of‑pocket expense and your overall financial situation.

Auto insurance works best when it’s easy to understand. Clear coverage options help you make informed decisions which can help you feel confident every time you get behind the wheel.

Get a quote with GM Insurance

Once you’ve found your next vehicle on CarBravo, securing the right insurance is one of the final steps before hitting the road. And because CarBravo is part of the General Motors family, that next step can be easier than you think. GM offers GM Insurance with coverage options designed to help drivers feel confident behind the wheel. Fill out some information about your new-to-you CarBravo vehicle and get a quote in minutes.