Auto insurance consists of several types of coverage, each designed to protect you in different ways. Understanding these coverages can help you choose the right policy for your needs.

1. Liability Insurance

Liability insurance is the foundation of most auto insurance policies. It includes:

• Bodily Injury Liability (BIL): Covers medical expenses, lost wages, and legal fees for others injured in an accident you cause.
• Property Damage Liability (PDL): Pays for damage to another person’s vehicle or property.

2. Collision Coverage

This coverage pays for repairs or replacement of your car if it’s damaged in an accident, regardless of who was at fault. It’s particularly important for newer or expensive vehicles.

3. Comprehensive Coverage

Comprehensive insurance covers non-collision-related damage, such as:

• Theft
• Vandalism
• Fire
• Natural disasters (hail, floods, hurricanes)
• Animal collisions

4. Personal Injury Protection (PIP) or Medical Payments (MedPay)

PIP covers medical expenses for you and your passengers, regardless of fault. MedPay provides similar coverage but is typically more limited in scope.

5. Uninsured/Underinsured Motorist Coverage

If you’re hit by a driver without insurance or with insufficient coverage, this policy helps cover medical bills and vehicle repairs.

Which Coverage Should You Choose?

The right coverage depends on your vehicle’s value, financial situation, and personal risk tolerance. A minimum liability policy may be enough for some, while others may prefer full coverage for better protection.