Auto Insurance Policy

There are basically six different types of coverages. Some may be required by law. Others are optional. They are:

  • Bodily injury liability, for injuries the policyholder causes to someone else.
  • Medical payments or Personal Injury Protection (PIP) for treatment of injuries to the driver and passengers of the policyholder’s car.
  • Property damage liability, for damage the policyholder causes to someone else’s property.
  • Collision, for damage to the policyholder’s car from a collision.
  • Comprehensive, for damage to the policyholder’s car not involving a collision with another car (including damage from fire, explosions, earthquakes, floods, and riots), and theft.
  • Uninsured motorists coverage, for costs resulting from an accident involving a hit-and-run driver or a driver who does not have insurance.