Liability coverage

There are two types of liability coverage: bodily injury liability coverage, which helps pay for medical costs for someone else who is injured in an accident you cause, and property damage liability coverage, which helps pay to repair or replace property damaged in an accident you cause. Most states have minimum required limits for liability coverage; view more information about the car insurance requirements in your state.

Collision coverage

This coverage helps pay for damage to your car caused by an accident, no matter who was at fault. Although collision coverage is an optional coverage as far as legal requirements are concerned, if you still owe money on your auto loan or if you lease your car, your lender or lease holder may require it.

Comprehensive coverage

This coverage – which is usually required if you are financing or leasing a car but optional if you own your vehicle outright - helps to pay for repair or replacement if your car is damaged by a cause other than a collision. Comprehensive coverage typically covers damage or loss from causes such as theft, animal damage or hail, but you should check your specific policy to determine what it covers.

Medical payments coverage

As the name implies, this type of coverage helps pay for medical bills for you or your passengers if you're injured in an accident. This coverage is usually optional and not available in all states.

Personal injury protection (PIP)

Only available in some states, PIP can help pay for costs you incur because you're injured in a covered accident, such as medical expenses, lost income, childcare costs or grocery delivery fees.

Uninsured and underinsured motorist coverage

This type of coverage can help protect you in case you're involved in an accident caused by someone who's uninsured (has no car insurance) or underinsured (whose liability coverage limits are lower than the cost of the damage caused in the accident).

There are additional optional coverages you may also want to consider, such as rental reimbursement coverage. Talk to your insurance company for more information about what is required in your state.