Liability, collision, comprehensive, personal injury and uninsured motorist are categories of car insurance, states 21st Century Insurance. States have their own laws regarding which types of insurance and in what amounts drivers must carry.
Liability car insurance covers the cost of property damage and medical costs for other drivers when policy owners are in a collision, notes 21st Century Insurance. People should carry more than the state minimum amount of liability insurance to avoid having to pay expenses out-of-pocket if they cause an accident. Collision insurance pays for damage to the policy owner's car in case of accident, or pays for the value of the car if the car is totalled. Car owners with older cars may not benefit from having collision insurance, though if someone else holds the liens on their cars, the coverage is required.
Comprehensive coverage pays for damage caused by things other than car accidents, such as weather damage, theft or hitting animals, notes 21st Century Insurance. While comprehensive coverage can be expensive, it can be more affordable when car owners add accessories such as tracking devices. Personal injury car insurance covers driver and passenger medical bills, regardless of who caused an accident. Uninsured motorist protection covers car owners who get into accidents with drivers who do not have liability insurance, while underinsured protection pays for the difference between the other driver's liability coverage and a policy holder's damages.