Liability Coverage

This is mandatory in most states. Drivers are supposed to purchase the minimum amount of liability coverage as specified by state laws. It comprises liabilities for bodily injury as well as liabilities for property damage.

Uninsured Or Underinsured Motorist Coverage

Uninsured motorist coverage helps in paying your medical bills in case an uninsured driver hits you. In some states, it also helps with the expenses of repairing your vehicle. An underinsured driver has insurance. But their insurance liability limits are not enough to deal with your medical expenses. That’s when underinsured motorist coverage insurance comes to your rescue. These are mandatory in some states while optional in others.

Comprehensive Coverage

This protects your car from theft, vandalism, fire or hail. Comprehensive coverage helps in paying for the replacement or repair of your vehicle. A deductible is applicable in case of this coverage. This means that you will have to pay a certain amount from your pockets. Your insurer will reimburse you later for a covered claim. Comprehensive coverages are primarily optional. But your lender may ask for it if you are paying off or leasing your car.

Collision Coverage

Collision coverage comes in handy when you get involved in an accident with another. This coverage also becomes applicable when your car collides with other objects such as a fence or a tree. It covers the cost of repairing or replacing your vehicle up to the actual value of the car. This also has a deductible, and even though this coverage is optional, your lender or leaseholder might ask for it.

Medical Payments Coverage

Medical payments coverage helps pay your medical bills if you or your passengers are injured in an accident. This coverage pays the expenses for surgeries, X-rays and others. While it is compulsory in some states, in other states, it is optional.

Personal Injury Protection

Personal Injury Protection is not available in all the states. It helps in paying your medical expenses after an accident. But this coverage also helps in bearing other costs due to your injuries. For instance, it covers childcare expenses or lost income.

Conclusion

There are other types of coverage available in your car insurance as well. You can always talk to a local agent if you need further help understanding the different components of a car insurance policy.