Types Auto insurance you should know

Most auto insurers offer six standard types of car insurance. Based on your state’s minimum requirements, some types of auto insurance policies are mandatory. However, it’s always a good idea to purchase full coverage rather than just the state minimum coverage.

• Liability car insurance: Bodily injury liability insurance (BI) covers other drivers and passengers if you are at fault in a collision, and property damage liability (PD) covers other cars or property if you are at fault in a collision.
• Collision insurance: Collision coverage protects your vehicle, regardless of who is at fault.
• Comprehensive insurance: Comprehensive coverage pays for damages to your vehicle caused by environmental factors, theft or vandalism.
• Medical payments (MedPay): MedPay covers any medical expenses for you and your passengers after a collision.
• Personal injury protection (PIP): PIP covers medical bills, lost wages and death benefits for you and your passengers, regardless of fault.
• Underinsured/uninsured motorist coverage (UM/UIM): This type of coverage protects you if you’re in a car accident with a motorist with too little coverage or no coverage at all.

Our January 2022 car insurance survey found 67% of the 1,000 respondents polled purchased full coverage insurance, which includes a combination of liability, collision and comprehensive coverage.