Auto insurance includes mandatory state requirements and any extras you may need to have on your policy, such as medical coverage or comprehensive insurance. By understanding what the basics of auto insurance are, you will be better able to find the exact coverage you need through online quotes.
Bodily Injury Liability
This is one of the most basic types of auto insurance, and is used to pay for injuries you caused to other people in the accident. Bodily injury coverage is required in all states that require car insurance and may be included with some coverage, such as no-fault insurance.
Property Damage Liability
Property Damage Liability is coupled with Bodily Injury Liability to form the most basic insurance allowed in most states. Property damage is used to pay for damages to cars, mailboxes or any other property of another person or company.
Personal Injury Protection
PIP insurance covers you against any injuries you sustain in an accident in which you are found to be at fault. This coverage applies to you and any other persons in your car. In states that use no-fault insurance, PIP is sometimes used synonymously for No-Fault. Medical coverage will protect you against extended medical costs and offer a method of paying the bills while you are not able to work.
Collision insurance is not required in most states. This type of insurance pays for repairs to your car if it is damaged in an accident where you are found to be at fault as well as paying for damages from hit and run or other accidents where there is no immediate at-fault party.
This covers just about everything that the other basic coverages do not, with the exception of flooding or other disaster coverages. If someone throws a brick through your window, comprehensive coverage will replace the glass, and it is the type of protection you need against the theft of items in your car.
Other types of coverage can be added to your basic policy and are called riders. For instance, if you live in an area that prone to earthquakes you may want to add an earthquake insurance rider, or one to cover hurricane damage if you live in a place such as Florida. Insurance riders can take many different forms, such as free towing or rental car reimbursement riders.