This is a type of insurance that protects the policyholder against losses involving automobiles. Different amounts of coverage can be purchased depending on the requirements of the person purchasing the insurance. Auto insurance rates are determined by a variety of factors which often differ from company to company.
There are basically six different types of coverage available. Some of these are required by law, while others are optional.
Bodily Injury Liability
This is for injuries the policyholder causes to someone else.
Medical Payments
This is for treatment of injuries to the driver and passengers of the policyholder’s car.
Property Damage Liability
This is for damage the policyholder causes to someone else’s property.
Collision
This is for damage to the policyholder’s car from a collision.
Comprehensive / Other Than Collision
This is 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
This is for costs resulting from an accident involving a hit-and-run driver or a driver who does not have insurance.
