Auto insurance provides financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise therefrom.

Auto insurance may also offers financial protection against theft of the vehicle and damage to the vehicle, sustained from things other than traffic collisions.

There are six basic types of coverages. Some are required by law. Others are optional. They are:

• Bodily injury liability – for injuries the policyholder causes to someone else.
• Medical payments – pays for medical costs from injuries to the driver and passengers of the policyholder’s car.
• Property damage liability – pays for damage the insured causes to someone else’s property.
• Collision – pays for damage to the policyholder’s car from a collision.
• Comprehensive – pays for damage to the policyholder’s car not involving a collision.
• Uninsured motorists coverage – pays the costs resulting from an accident involving a hit-and-run or a driver who does not have insurance.