What coverages are available in an auto insurance policy?

You have many coverage options with your auto insurance policy. Each coverage is priced separately and each are optional and must be requested by you.

Liability
This auto insurance coverage applies to injuries and damages that you or family members listed on the policy cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission. It’s very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets such as your home and savings.
Medical Payments
This auto insurance coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs.
Collision
This car insurance coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $250 to $2,5000—the higher your deductible, the lower your premium. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you're not at fault, your car insurance company may try to recover the amount they paid you from the other driver’s car insurance company. If they are successful, you'll also be reimbursed for the deductible.
Comprehensive
This auto insurance coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer.
Comprehensive auto insurance is usually sold with a $100 to $500 deductible, though you may want to opt for a higher deductible as a way of lowering your auto insurance premium.
Comprehensive auto insurance will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage without a deductible for windshield repairs but not replacements.
States do not require that you purchase collision or comprehensive coverage, but if you have a car loan, your lender may insist you carry it until your loan is paid off.
Uninsured and Underinsured Motorist Coverage
This car insurance coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver.
Underinsured motorist car insurance coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian.

Other optional auto insurance coverages can be purchased for an additional premium. They include but are not limited to: towing and labor, rental reimbursement, additional installed equipment coverage, and GAP coverage.