Auto insurance is a legal necessity for every driver, but a standard policy can feel like a complex menu of options and unfamiliar terms. Understanding what each of those terms means is the key to ensuring you are properly protected on the road.

As with your home insurance, one of the first practical steps after the loss of a spouse is to contact your auto insurance company. You will need to have your late spouse removed as a driver on the policy and ensure the names on the vehicle’s title and the insurance policy match. This will likely adjust your premium, making it the perfect time to review your coverages and confirm they align with your needs.

Think of this guide as a translator for your auto policy’s declarations page, breaking down each coverage so you know exactly what it does.

Part 1: Protection for Others (Liability Coverage)

This is the portion of your policy that is legally required in Minnesota. It protects you financially by paying for damages you cause to other people in an at-fault accident.

• Bodily Injury Liability: This covers the costs associated with injuries or death you cause to other drivers, their passengers, or pedestrians. It pays for their medical bills, lost wages, and pain and suffering. You will see this written as two numbers (e.g., $50,000/$100,000), which represent the maximum amount the policy will pay per person and the maximum per accident.
• Property Damage Liability: This covers the cost to repair or replace property you damage in an accident, most commonly the other person’s vehicle. It also covers damage to other property, like a fence, a mailbox, or a building.

Having liability limits high enough to protect your savings and home is essential.

Part 2: Protection for Your Own Car

While liability covers others, this next set of coverages protects the value of your own vehicle. These are typically required if you have a car loan but are otherwise optional.

• Collision Coverage: This pays to repair your car after it is damaged in a collision with another vehicle or an object (like a utility pole or a guardrail), regardless of who was at fault.
• Comprehensive Coverage: Sometimes called “Other Than Collision,” this covers damage to your car from a wide range of non-accident events. This includes theft, vandalism, fire, hail, flooding, or hitting an animal.

Both Collision and Comprehensive coverages are subject to a deductible, which is the amount you pay out-of-pocket before the insurance coverage kicks in. Choosing a higher deductible will lower your premium, but you must be comfortable paying that amount in the event of a claim.

Part 3: Protection for You and Your Passengers

This final group of coverages is designed to take care of your own medical bills and protect you from uninsured drivers.

• Personal Injury Protection (PIP): Because Minnesota is a “No-Fault” state, all drivers are required to carry PIP coverage. This is a crucial benefit that pays for the medical expenses and lost wages for you and your passengers, no matter who caused the accident. This ensures you can get immediate medical care without waiting for a lengthy fault determination.
• Uninsured Motorist (UM) Coverage: This protects you if you are injured in an accident caused by a driver who has no auto insurance. Your UM coverage steps in to pay for your medical bills and other damages that the at-fault driver should have been responsible for.
• Underinsured Motorist (UIM) Coverage: This is similar to UM but applies when the at-fault driver has insurance, but their liability limits are too low to cover the full extent of your medical bills.

Reviewing your auto policy’s declarations page once a year is a smart financial habit. It allows you to check your coverages, adjust your deductibles, and have a knowledgeable conversation with your agent to ensure you have the right protection for your specific situation.

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