A typical car insurance policy may include six types of coverage, each of them being priced separately.

1. Bodily injury liability
   This coverage pays for the injuries the policyholder causes to a third party while driving the car noted in the policy. When driving someone’s car on permission you and your family members included in the policy are also covered in case of an accident.
   You should remember that having enough liability insurance will help you avoid serious problems in case a bad accident takes place. You can be sued for a bug sum of money and having more than the required minimum in liability insurance will protect your assets from the claim.

2. Medical coverage or personal injury protection (PIP)
   This type of insurance coverage coverage pays for the bills when treating injuries to the driver and passengers of car included in the policy. AT a wider scale PIP will cover medical bills, wages lost and the costs of substituting the services normally rendered by the person injured in the accident. In some cases it will also cover funeral costs.

3. Property damage liability
   Thus type of coverage pays for the damage your car causes to third party property. In most cases it’s the other car involved in the accident, however it can also be any element of the infrastructure, e.g. buildings, lamp posts, fences and so on.

4. Collision
   This type of insurance coverage pays for the damage your car has taken due to a collision with another car or object. Collision coverage usually comes with a deductible between $250 and $1,000. The rule of thumb here is that the higher is the deductible the lower is the insurance premium paid. In case you are at-fault in an accident your insurance company will still use the collision coverage to pay for the repair of your car, excluding the deductible. In case you are not at-fault during the accident your insurer will try to cover your costs by requesting it from the at-fault driver’s insurance company and in case they are successful you will be returned your deductible.

5. Comprehensive coverage
   This type of coverage pays for theft or damage resulted from conditions other than collision, such as storms, hurricanes, fires, floods, earthquakes, riots, disasters and so on. It will also pay for damaged or cracked windshield.

6. Uninsured and underinsured motorist coverage
   This type of insurance coverage will pay for the injuries in case you or any other person included in the policy is hit by an uninsured or hit-and-run driver.
   Underinsured motorist coverage takes force in case the at-fault driver hasn’t enough insurance amount to cover your loss. This type of coverage will also pay for your expenses in case you are involved in an accident as as a pedestrian.