What are the different types of car insurance?
Answer: 
Car insurance can be broken down into 2 main
categories of coverage.  Each category has a fairly specific purpose.  Together, the coverages take care of the costs associated with injury to an insured person and/or a claimant as well as damage to property belonging to the insured person and/or claimant.  Here’s a simple breakdown of each category:

Coverage that applies to injuries to yourself or others:

Bodily Injury Coverage :  Mandatory in most states, this coverage will protect you in the event your negligence behind the wheel causes injury to others.  It will also pay for legal expenses if your case winds up in court.
 
Medical Coverage :   This covers medical expenses if the insured person is injured—as well as others in the car—and it doesn’t matter who is at fault in the accident.  You’ll find this coverage in states that do no have “no-fault” insurance laws.

No-Fault Insurance :  State specific coverage that compensates for medical expenses if an insured person is an accident.  It will pay for injuries to anyone in the vehicle as well as someone who is not in any car at all—such as a pedestrian.  Benefits associated with medical expenses under this category are also referred to Personal Injury Protection or “PIP”.
 
Coverage that applies to damage to property:

Collision Insurance :  If your vehicle is damaged after colliding with another—this coverage will make you whole again.   This is generally important to have if your vehicle is still worth a significant amount of money.
 
Comprehensive Insurance:  This coverage will take care of just about anything else that could possibly happen to your vehicle—excluding collision with another vehicle.  Storm damage, fire, and theft are included hazards.

Property Damage liability :  Mandatory in most states, this coverage pays for someone else’s vehicle or other property you’ve damaged when you’re at fault behind the wheel. 
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