Liability

• Liability insurance will cover you in the event a third party makes a claim that you were negligent and at fault for an accident. Although the minimum limit of coverage will vary from state to state, the basic liability insurance coverage is the same. Liability will pay a certain amount for bodily injury to a third party that did not result in death, another amount (usually double) for bodily injury to two or more people and a higher amount for injury that resulted in death. If it is found that you are at fault and a claim is made for property or car damage, your liability insurance will pay up to the amount designated in your policy. It will not cover the repair to your own vehicle or property.
  
  

Personal Injury Protection

• Also referred to as “no fault” coverage, personal injury protection is a requirement in some states. It will cover you, the driver, and all passengers up to a certain dollar amount for medical expenses, loss of income and other accident related expenses regardless of fault. It does not cover any damage to your personal vehicle or damage to the vehicle or property of a third party.
  
  

Uninsured Coverage

• Also referred to as "uninsured motorist coverage," this clause or provision is mandatory in some states. It provides for a driver and other passengers of a car to receive damages for bodily injury if the other driver is uninsured or in the case of a hit-and-run accident. If you reside in a state where uninsured coverage is not mandatory, you can purchase it as supplemental coverage.
  
  

Collision

• With collision coverage, the insurance company will pay you, regardless of fault, for damage to your car. Depending on the extent of damage, it will either pay to repair or replace your vehicle. An associated deductible must be met before your policy will pay, which is determined by you when you purchase coverage. Collision insurance is usually required to secure a car loan. If you do not have collision coverage, you can still recover some of the damages caused to your car if the other driver is at fault by making a claim against the other driver’s liability insurance.
  
  

Comprehensive

• Having comprehensive coverage is often where the term “full coverage” comes in. Comprehensive coverage offers protection for damage to your car from almost anything except collision, including: fire, theft, vandalism, floods, windstorms and other damage caused by the weather. The coverage is subject to a deductible, but this deductible is waived under certain circumstances depending on the provisions in your policy. Such cases may include damage to the glass windows of your car.