Unfortunately, car insurance can't keep you from getting into an accident, but it can help pay the hefty medical bills and repair costs that come from a serious wreck.

How much your policy will pay out depends on the types of car insurance you buy and the limits you choose.

Basic personal auto insurance mandated by most U.S. states provides you some financial protection while operating your car, you cause an accident that damages someone else's car or property, injures someone or both.

But to make the best decisions about other types of auto insurance coverage needed and what amounts, you'll want to understand what's covered, what's not covered and what's optional, as state-required minimums may not cover the costs and complexities of a serious accident.

Does my insurance cover that?

When we consult with people who have been involved in a serious car accident, most do not know what kind of car insurance coverage they have off-hand.

This is not surprising, because car insurance policies are intentionally confusing, broad, vague, ambiguous, and unnecessarily long. Insurance companies rely on the fact that most people will not actually read the policy or fully understand the coverage.

A phrase we often hear from some to describe their policy is that they have "the full coverage", but because of the various types and sizes of coverages and exceptions, that phrase doesn't really mean anything.

Your personal auto policy likely only covers personal driving, whether you're commuting to work, running errands or taking a trip. Your personal auto policy, however, will not provide coverage if you use your car for commercial purposes—for instance, if you deliver pizzas or operate a pet grooming business.

How do I know what insurance coverage I have?

Each type of coverage has a limit — the maximum your policy will pay after an incident. The best and easiest way to get a full view of your coverage is to request that your insurer provide you with your Declarations Page.

Before you're ever involved in a car accident, looking at your Declarations Page will give you a full understanding of the insurance coverage you currently have and help you understand other coverages you might consider adding.

In the unfortunate case of a serious car accident, this Declaration Page - or Dec Page - is one of the first things your lawyer will request to see. Below is an example of what a "Dec Page" might look like.

It's important to know what these insurance coverages actually mean, but the Dec Page will not provide a detailed account of what exceptions exist that might cause coverage to be denied. For that information, you have to read your actual policy for that. 

The Dec Page gives you a quick 1-2 page overview of the coverages you have and those you have declined - a summary blueprint of what you already have and what additional insurance coverage you might want to consider.