Auto insurance provides coverage for liability, physical damage and bodily injury resulting from traffic collisions. It also offers financial protection against theft and damages to auto sustained from other things.
There are different types of coverages some are mandatory and some are optional.
- Collision – for damage to the policyholder’s auto from a collision.
- Comprehensive – for damage to the policyholder’s auto not involving a collision with another auto including damage from fire, explosions, floods, earthquakes, theft and riots.
- Bodily injury liability – for injuries caused by policy holder occurring in an accident
- Personal Injury Protection (PIP) – Medical payments for treatment of injuries to the driver and passengers of the policyholder’s car.
- Property damage liability – for damage, the policyholder causes to others property.
- Uninsured motorist coverage – for costs resulting from an accident involving a driver who does not have insurance or a hit-and-run driver.