There are many different types of auto insurance to choose from, depending on what type of coverage you need and what you can afford.
The standard type of insurance is liability insurance. Liability insurance is the minimum coverage that a state allows you to have. Liability insurance usually only covers the other party involved in the accident and not yourself or your passengers. Liability insurance will cover any property that your vehicle damages in an accident, such as the other car(s), fences, or guardrails. Bodily injury liability insurance covers other people bodily injuries or even death that is caused by you. It does not cover your passengers or yourself. It covers things such as medical bills, pain and suffering, or loss of income. You want to have just enough insurance to cover if you happen to get sued. You will want it to be able to at least cover the judgment against you. You should definitely purchase this if you can afford it. Uninsured motorist insurance (UMI), is another type of insurance that you definitely want to consider. UMI will cover you if you happen to get into an accident with another driver who does not have minimum auto insurance. UMI will cover you, other insured drivers of your household and your passengers if you are in an accident with an uninsured driver and the other driver is at fault. There is also underinsured motorist insurance, which is for drivers whose insurance does not cover the amount of damages that they have caused you.
Comprehensive insurance or “other than collision†insurance will cover your vehicle in the event of a fire, theft, natural causes (hail, flood, etc.) or vandalism. If you have an older car, you may want to consider dropping this type of insurance, as the insurance company will only pay you for the amount of your vehicle. If your vehicle has sustained damage that is higher than the value of your vehicle, you will receive only the value of your vehicle.
Personal injury protection or PIP, covers medical, hospital and funeral costs of the insured, passengers and pedestrians struck by the driver, regardless to whom is at fault.
Always remember that having insurance is very important and it is the law! It will prove itself very useful when you are in an accident, so remember to have as much coverage as you can afford.