- In most states liability coverage is required by law. This covers both body and property injury of the other party involved, which relieves your liability.
- This protects you if you are involved in an accident with someone who either has no insurance or is under insured. Some states do not make this a requirement but if you choose not to carry this coverage and then get in a wreck with someone who has no insurance, then you will have to pay for everything yourself.
- This is not mandatory in all states. It offers more coverage for any medical costs that are related to an accident. The rules for Personal Injury Protection vary greatly from state to state.
- No fault insurance is only accepted in less than half of the states. It eliminates the burden of having to prove who is at fault in an accident. Each person has their own coverage. This was adopted, in part, to hinder cases that were flooding an already over crowded court system from having to decide fault of an accident.
- Collision is normally mandatory if you have a lien against your car and owe money on it. This is a part of your insurance package that covers the damage to your car in the event of a collision. After you meet your deductible the insurance would meet their obligation.
- Comprehensive, like collision, is required by law if you have financed your vehicle. Otherwise, it is optional in most states. This portion of your policy would cover your vehicle in the event of theft, if your car is vandalized, if there was a storm and a tree fell on it, etc. Again, you must first meet the deductible.
