Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Former Farmers Insurance CSR

UPDATED: Nov 12, 2020

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Property and casualty insurance is an umbrella term that includes several types of insurance. Homeowners insurance is one type of property and casualty insurance. Other types of insurance that fall under this blanket are condo insurance, renters insurance, and landlord insurance. But what about auto insurance? Is insurance for your car “property and casualty insurance”, too?

Keep reading below to find out. Today, we’re explaining everything you need to know about whether auto insurance is property and casualty insurance.

Yes, Car Insurance is Typically Considered Property and Casualty Insurance

Car insurance protects your vehicle, and you, in a few different ways. Car insurance policies in the US all must contain liability coverage. They also usually contain collision and/or comprehensive coverage. Because of this, auto insurance is typically considered to be property and casualty insurance.

An insurance policy is considered “property and casualty insurance” when it contains two primary coverage limits, including property protection coverage and liability coverage. A homeowner’s insurance policy is considered property and casualty insurance, for example, because it covers the cost of your belongings if they’re stolen and because it covers the expenses of anyone injured in your home. If someone slips and falls down your staircase, for example, then your homeowner’s insurance can cover their medical bills, pain and suffering, and loss of income. That’s why homeowner’s insurance is considered property and casualty insurance.

Ultimately, property and casualty insurance will cover expenses that you’re legally required to pay, up to your policy limits.

Car insurance works in a similar way. You buy car insurance to protect a specific type of property and to protect yourself against liability. That “property” is your vehicle. If you harm someone with your vehicle, for example, then you’re legally required to cover that person’s medical expenses, pain and suffering, and loss of income.

Just like homeowner’s insurance protects people in your home against certain damages, auto insurance protects people who may be damaged by your vehicle.

Property and casualty insurance can also cover cars, motorcycles, RVs, watercraft, and other vehicles. Umbrella insurance, workers compensation coverage, homeowner’s insurance, and personal liability insurance are also considered types of property and casualty insurance.

Property and casualty insurance is particularly important for businesses as they tend to have more property to insure and more liability to cover.

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There Are Three Types of Property Loss

The “property” part of property and casualty insurance will protect any property you own that gets lost or damaged, up to a certain limit. The three types of property loss covered by property and casualty insurance – including auto insurance – can include:

Loss Of or Damage To the Item Itself: If your vehicle is damaged in an accident, for example, then your property and casualty insurance may cover this damage.

Loss of Income from Use of the Item: If your business burns to the ground and takes a year to rebuild, then you may not have income for the entire year. Property and casualty insurance can cover loss of income from use of the covered item – in this case, your business. Typically, car insurance won’t provide coverage for loss of income unless you’re injured. However, your insurance may provide rental car coverage while your vehicle is being repaired after a collision.

Extra Expenses Incurred Due to Loss of the Item: If your vehicle is damaged in a collision and you need to rent a car, then your car insurance may cover this expense.


Property and casualty insurance will pay costs that you’re legally entitled to cover. The “property” part of property and casualty insurance refers to the fact that it protects your property. The “casualty” part refers to your coverage against liability, including coverage against things you’re legally entitled to cover.

Remember that drivers in every state but New Hampshire are required to have auto insurance. Compare quotes online today to ensure you’re protected against damage to your vehicle and other liabilities.