Automobile insurance is the most popular and most bought insurance in the USA. The country has much more auto than people and a lot of States make it law that people need to have car insurance. With so many people demanding insurance it will always be best to be informed about the various aspects of motor vehicle insurance. This article will focus on the six different types of car insurance.

Bodily Injury Liability is an insurance policy that covers drivers of another car. If the policy holder is in an accident and another driver is hurt then the medical costs will be covered by bodily injury liability This mainly benefits policy holder as he does not have to worry about being sued.

The Medical Payments or Personal Injury Protection (PIP) insurance coverage is close to the bodily Injury liability mentioned above. The difference between the tow is the fact that the policy holder and associated passengers are covered in the case of an accident. This means they are entitled to have their medical bills, loss of wages and even death is covered.

Under Property Damage Liability car insurance policy, the insurance company will cover the cost of repairs to the other party’s car in the event of an accident. With this coverage the other individual’s damages will be paid for by the insurance company, while the policy holder would have to pay for his own damage from his own pocket.

The Collision insurance policy is one of the most common and cheapest auto insurance policies available. With collision the insurance company will pay for the damage or repairs if another driver crashes into you. This usually requires drivers to have a deductible and once the deductible is paid, the insurance company will pay for the rest.

Comprehensive coverage is another popular policy for motor vehicle owners. With comprehensive coverage the car is covered from a wide array of things. The car will be protected from fire, theft acts of God and collision with other vehicles. Policyholders need to pay a monthly deductible. Once this is paid in the event of an accident, the insurance company will cover the rest.

in the event that someone with no insurance crashes into you, then Uninsured and Underinsured Motorist Coverage will cover the costs of the damage sustained by the driver. If it happens to be a case where it was a hit and run, then the policy holder will be protected.

Understanding auto insurance makes it easier if you plan on purchasing in the future. You have looked at Bodily Injury Liability, Medical Payments or Personal Injury Protection (PIP), Property Damage Liability, Collision, Comprehensive, Uninsured and Underinsured Motorist Coverage. In analyzing each policy we get to see what each one has to offer. In doing so it allows the potential purchaser of insurance to have the best information available for making the choice on their auto .