Understanding your auto insurance better starts with knowing the different kinds of coverage. Your agent can help you determine the state-mandated insurance requirements as well as the optional insurance that would benefit you. In the meantime, continue reading for an overview of liability, comprehensive, and other policy types.
1. Liability Coverage 
Most states require liability car insurance. You must buy the minimum coverage mandated by the state. Liability insurance includes bodily injury and property damage. Bodily injury liability pays for injuries to another driver and their passengers if you hit another vehicle. Property damage liability pays to repair another person's vehicle or property in case you cause an accident.
2. Uninsured or Underinsured Motorist Coverage
This insurance covers your expenses if someone hits you and they don't have insurance. It also covers you if the at-fault driver's insurance limit is less than your medical bills or car repairs. Ask your agent for the details of how this works in your state.
3. Comprehensive Coverage
This car insurance option covers your vehicle for hail, theft, fire, and vandalism. Comprehensive coverage pays for damages to your car or reimburses you for the covered amount if your car is totaled. Although you don't legally need this coverage, most lenders require it if you finance or lease.
4. Collision Coverage
Collision coverage pays for damages when you hit an object such as a pole, tree, or guardrail. It may help repair your vehicle, depending on your policy details. Although its optional legally, many lenders require it.
5. Medical Payments
This covers you, other drivers on your insurance, and passengers who suffer accident-related injuries. Covered costs typically include hospital visits, X-rays and related expenses.
6. Personal Injury Protection
If applicable where you live, PIP insurance resembles medical payments auto insurance. In addition to medical bills, it may pay for lost income and childcare costs related to the accident.
Other Types of Auto Insurance
You can choose from a list of available coverage types to tailor your policy to your needs.
Some of the other types of car insurance include:
- Rental reimbursement
- Gap coverage
- Transportation expense
- Towing and labor
- Classic car
- Ridesharing
- Sound system
With all the available options for auto insurance, it helps to sit down with a professional who can explain them in detail. This can help you make the best decision for you and your family. Talk to your insurance agent about the best options to protect your vehicle, your passengers, and yourself while you're out on the road.