Auto Insurance Coverages Explained

Liability Insurance

This is Required Coverage

Liability insurance coverage helps you to protect you and your family against financial loss arising from legal liability associated with bodily injury or property damage of another due to an accident you cause. Most states require you to carry a minimum amount of liability insurance coverage, or post a bond, before you can register your vehicle or obtain a driver’s license.

In a nutshell: Liability pays to the other guy if you owe him.

Bodily Injury Liability

This is Required Coverage

Bodily Injury coverage covers the expenses associated with other people’s injuries or death for which you are legally responsible. Coverage includes medical expenses, loss of income and pain and suffering. These coverages are subject to the limits and conditions of your policy. In Arizona you must carry at least $15,000 per person, $30,000 each accident Bodily Injury coverage.

In a nutshell: Pays for the other guy’s injuries.

Property Damage Liability

This is Required Coverage

Property Damage covers your liability for damaging another person’s personal property, such as an automobile, house or fence. In Arizona, you must carry at least $10,000 Property Damage Liability.

In a nutshell: Pays for the other guy’s car, house, fence, etc.

Uninsured and Underinsured Motorist

This is Optional Coverage

Uninsured Motorist coverage covers you, and your passengers in an accident with a motorist who has no insurance or is underinsured. It also provides coverage if you’re hit by a hit-and-run driver and, even as a pedestrian. Coverage includes payment of medical costs, lost wages and pain and suffering. Underinusred Motorist covers any difference between the limit the other at fault driver’s insurance covers and the costs of your bodily injuries, up to your policy limits. This coverage is optional.

In a nutshell: Pays if the other guy hurts you, and doesn’t have insurance, or not enough insurance.

Medical Payments

This is Optional Coverage

This coverage pays medical bills and funeral expenses for you or a passenger injured in an accident while riding in your vehicle. Coverage extends to you or a family member when riding as a passenger in someone else’s vehicle or when struck by a vehicle when on foot. Costs are covered up to the amount specified by the policy.

In a nutshell: Can pay medical expenses for you, or the people in your car no matter who is at fault.


This is Optional Coverage

Comprehensive coverage protects your investment in your vehicle by covering losses to the car resulting from fire, theft, falling objects, riots, storms, earthquakes, floods, hail, and collision with a bird or animal. Comprehensive coverage generally includes a deductible which you select. Comprehensive coverage is normally required if your vehicle is leased or if you have an outstanding loan on the vehicle.

In a nutshell: Pays to fix your car for damage that isn’t caused by a crash.


This is Optional Coverage

Collision coverage covers the damage to your vehicle resulting from a collision with another vehicle or object. Generally, the coverage reimburses you the amount needed to repair or replace your damaged vehicle, minus the deductible you select. This coverage is normally required if your vehicle is leased or if you have an outstanding loan on the vehicle.

In a nutshell: Pays to fix your car if it gets crashed.

Car Rental Reimbursment

This is Optional Coverage

Farmers Auto Rental Service is a program that quickly provides a rental vehicle for your use after an accident. This network of pre-screened, nationally-known rental car companies provide free pickup and delivery, direct billing to Farmers and an automatic deposit waiver (deposit waiver is not available in all areas).

In a nutshell: Pays if your car gets crashed, to rent you a car.


This is Optional Coverage

This coverage pays to have your windshield or other windows repaired or replaced with no deductible. You must have Comprehensive coverage for this option to be available.

In a nutshell: Pays fix or replace your windshield if it gets broken.

Towing and Road Service

This is Optional Coverage

Covers reasonable and necessary towing and labor costs incurred because of disablement of your insured car. Call 1 800 FARMTOW and in most cases you won’t need to pay the tow company, or wait for reimbursement

In a nutshell: If your car won’t go, the towing or jump start is covered.

* The Disclaimer Stuff
These descriptions are meant to be a general guide as to what each coverage is meant to do. These are not an exact or complete definitions of any of the coverages explained. Only actual policy documents determine coverage.