Liability, collision and comprehensive are the most common types of car insurance coverage to consider when comparing quotes and buying a policy.
Liability car insurance
Liability car insurance covers injuries or property damage you cause to others while driving. This includes damage you may cause to someone else’s car.
On a related note, nearly every state requires you to have at least some liability car insurance coverage.
Collision car insurance
Collision car insurance covers damage to your own car. It only covers damage that’s caused by an accident with another vehicle or a stationary object, though.
No state law mandates collision coverage, but lenders often require it. So, if you financed your vehicle, you’ll probably need to buy collision car insurance.
Comprehensive car insurance
Comprehensive car insurance covers damage to your car that’s caused by something other than a collision. This includes damage from:
- falling objects
- other acts of nature
Comprehensive covers glass and windshield damage, too.
Like collision coverage, comprehensive is usually optional. You may need to get it if you have a loan or lease on your car, though.
Uninsured motorist coverage protects you if you’re in an accident with someone who doesn’t have liability car insurance coverage. It also covers hit-and-run accidents.
Underinsured motorist coverage protects you if you’re in an accident with someone who doesn’t have enough liability car insurance to cover your repair costs or medical bills.
Personal injury protection
Also called PIP, personal injury protection covers your medical costs and other related expenses if you’re injured in a crash. With PIP, it doesn’t matter who caused the accident. This is why it’s also known as no-fault insurance.
Some states require PIP. It’s optional in others.