Consumers determine what is included in their car insurance based on the products they purchase, such as liability, collision, medical coverage, uninsured and underinsured motorists protection, and comprehensive coverage, notes HowStuffWorks. States have different requirements for auto insurance, and drivers should learn state laws prior to purchasing insurance.Continue Reading
Liability auto insurance pays for accidental personal injuries and covers things such as medical expenses, lost wages, pain and suffering, states HowStuffWorks. Liability coverage also pays for auto or other property damage caused by the insured person's vehicle, as well as for court and defense costs in accident-related cases. People who choose collision insurance are covered for the cost of damages to their own vehicles in case of an accident. Medical auto insurance coverage pays for medical expenses related to an accident, regardless of who is at fault.
People can choose uninsured motorist auto insurance to protect themselves in cases of an accident with another driver who does not have liability coverage, notes HowStuffWorks. Underinsured motorist protection covers people who have an accident with someone who carries liability insurance, but the coverage is not sufficient to pay for the damages caused by the collision. Comprehensive auto insurance covers damages other than those incurred during an accident, such as damage from wind, hail, fire, vandalism and theft.Learn more about Vehicle Insurance