Collision, comprehensive, underinsured motorist, uninsured motorist and personal injury protection policies are good insurance policies for first-time drivers, according to DMV.org. These are advisable insurance plans in addition to liability insurance, which is usually a state-required policy.
Liability insurance covers bodily injury to the other party in the case of a vehicle accident and property damage to another individual's possessions during a car accident, explains DMV.org. Because this type of insurance only covers other people involved in an accident, a policyholder should add optional coverage for better financial protection.
Collision insurance provides compensation when a policyholder's car gets damaged in a collision, while comprehensive insurance pays for car damage resulting from a natural disaster, harsh weather, animal collision, vandalism or theft, reports DMV.org. These types of coverage are ideal for drivers living in large metropolitan areas, but they are not suitable for first-time drivers with old, low-value or secondhand cars.
Underinsured motorist coverage offers financial protection in the event of an accident in which the other party does not have adequate insurance to pay for the damage, notes DMV.org. Uninsured motorist coverage pays for damage costs if the other driver has no insurance coverage. Some states require personal injury protection, which covers the policyholder's medical bills regardless of the driver at fault in an accident. The policyholder may obtain payment for medical costs before the insurance company completes its accident investigation.