Car insurance policies are created with several components purchased separately but all working together to provide you coverage. Some of these components are required by law, and others are optional. This article covers the basics, but there are lots of other components available. They have a variety of abbreviated names that may be different in each state.
Liability insurance covers you for damage that you cause to someone else. Property damage liability will pay to replace and repair other people’s property. Bodily injury liability will pay for other people’s injuries or death. This type of insurance doesn’t cover your own property damage or personal injury, only another’s if you are at fault.
Physical damage coverage, on the other hand, refers to damage to your own vehicle. There is collision coverage which insures damage to your car if you run into something or something runs into your car. There is also comprehensive car insurance which pays for many other items including theft, fire, vandalism, glass breakage, etc.
Uninsured motorist coverage protects you if you are injured or your property is damaged by a driver with no insurance. A closely related insurance is the under-insured motorist coverage that protects you when you get into an accident caused by someone with some insurance but not enough to pay your damages.
Personal injury protection covers your own injuries regardless of who is at fault for an accident.
The above are the main types of car insurance, but there are a variety of others such as road service or rental car insurance, or insurance for special features.