Automobile Insurance is designed to offer protection from the liability of losses for injury as well as property damage. You can also protect your own car from losses due to an accident (collision) or certain other types of damage (comprehensive).

Liability Coverage
Each state establishes its own guidelines for Auto Insurance, including whether coverage is mandatory, and what minimum coverage must be carried. Some states also incorporate "No-fault" coverage, which was designed to speed up financial recovery without the need to establish fault and prove negligence. The liability portion of the auto policy provides coverage to protect you against a claim or a lawsuit for Bodily Injury (BI) or Property Damage (PD) that may occur as a result of the negligent operation of an automobile. Depending on what state you live in and the insurance company you choose, this coverage is typically written as:

Medical Payments
The medical coverage portion of the policy provides coverage up to the specified limit for reasonable and necessary medical expenses to individuals occupying the insured vehicle or for family members who are injured by a normal road-use vehicle while they are a pedestrian. This protection is an option that is commonly included in Automobile Insurance Policies.

Uninsured Motorist (UM) and Underinsured Motorist (UIM)
Uninsured Motorist coverage provides protection to the insured when bodily injury is caused by another driver who is not covered by Liability Insurance. Underinsured Motorist coverage provides protection when bodily injury is caused by a person who carries liability coverage but whose policy limits do not cover the full amount of the loss. The two coverages do not overlap. Some states require Uninsured Motorist coverage unless you specifically waive it. Underinsured Motorist coverage is optional under Automobile Insurance.

Physical Damage Coverage
This is the portion of the Auto Insurance Policy that protects your car from loss due to damage or theft and it extends to unowned and temporary substitute vehicles. Collision losses, paid regardless of fault, are covered when the insured vehicle is involved in a collision with another object or overturn. Other than Collision (or Comprehensive) Coverage, this applies for losses due to such things as fire, theft, weather, vandalism, glass breakage or contact with any animal. Policies typically include a deductible, representing the amount of loss you must pay before the insurance payments begin.

Other options are available with your Auto Insurance Policy, including towing, rental coverage, and coverage while driving in Mexico.

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