If you drive a car, you will probably have car insurance since it is required by law in most states. When people get car insurance a lot of the time they just get only the amount of insurance needed to satisfy the law. But sometimes it makes sense to understand what the different coverages of insurance are and under what conditions they are used.
When you own a car outright and need only enough insurance to satisfy the law, liability insurance is what you need. Liability insurance protects you against damages that result from an accident that is your fault.
If your car is involved in an accident with another car that ends up needing repair or complete replacement, collision insurance will take care of it.
Things can happen to your car that aren’t accident related and this is where comprehensive coverage comes into play. Comprehensive will pay for damages caused by weather related factors, animal caused damage, theft and vandalism.
Personal injury coverage will pay your medical expenses if they were caused by an accident.
Despite the fact that the law requires all cars on the road be insured, there are still a lot of people driving that are not insured, or underinsured. If you are unfortunate enough to be involved in an accident with one of these people, they probably won’t be able to pay for any damages you incur. It is for this kind of situation that there is uninsured and underinsured motorist coverage.
These are just some very brief descriptions of what the different kinds of car insurance coverages do and when they come into play. It makes sense for you to know the differences of these coverages so that you can be better prepared should you need to file a claim. For better descriptions and explanations on these coverages and other insurance benefits, see a professional.