The 6 Parts Of An Auto Insurance Policy

An auto insurance policy can contain 6 parts. Depending on the state in which you live, you may be required to purchase some, if not all, of these parts.

Bodily Injury Liability
Pays damages when other people are injured or killed in an incident involving your vehicle. This coverage is required in most states.

Property Damage Liability
Pays when you damage the property of others with your vehicle. This coverage is required in most states.

Personal Injury Protection (or Medical Payments Coverage)
Pays medical costs and other damages for injuries to you and your passengers. This coverage is required in some states, optional in others.

Collision Coverage
Pays for loss or damage to your vehicle from a collision with another vehicle or object, when you're at fault. States do not require this coverage. However, companies that loan you money to buy a car or agree to lease you a car, may require this coverage.

Comprehensive Coverage
Pays for loss or damage to your vehicle caused by fire, theft, vandalism, hail, windstorms, riots, falling objects, floods and certain other perils. States do not require this coverage. However, companies that loan you money to buy a car or agree to lease you a car, may require this coverage.

Uninsured Motorist Coverage
Pays for damages to you and your passengers when injury or death is caused by an uninsured, under-insured or hit-and-run motorist. It also pays for damage to your vehicle from a collision with another vehicle or object, when the uninsured motorist is at fault. This coverage is required in some states, optional in others.