Your motorcar plan may include half-dozen programs. Each coverage is priced separately.

1) Bodily Injury Liability

This plan applies to injuries that you, the driver or policyholder, cause to someone else. You and your family members listed on the plan are also covered when driving someone else’s automobile with their permission.

It’s very important to have enough liability auto insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets such as your home and savings.

2. Medical Payments or Personal Injury Protection (PIP)

This coverage pays for the treatment of injuries to the driver and passengers of the policy holder's automobile. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an car car crash. It may also cover funeral costs.

3: Property Damage Liability

This policy pays for damage you (or someone driving the auto with your permission) may cause to someone else's property. Usually, this means damage to someone else’s vehicle, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures your car hit.

4. Collision

This program pays for damage to your motorcar resulting from a car collision with another automobile, object or as a result of flipping over. It also covers damage caused by potholes. chance event policy is generally sold with a deductible of $250 to $1,000—the higher your deductible, the lower your premium. Even if you are at fault for the car crash, your collision coverage will reimburse you for the costs of repairing your motorcar, minus the deductible. If you're not at fault, your insurance company may try to recover the amount they paid you from the other driver’s automobile insurance price. If they are successful, you'll also be reimbursed for the deductible.

5) Comprehensive

This program reimburses you for loss due to theft or damage caused by something other than a accident with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer.

Comprehensive auto insurance is usually sold with a $100 to $300 deductible, though you may want to opt for a higher deductible as a way of lowering your premium.

Comprehensive car insurance will also reimburse you if your windshield is cracked or shattered. Some prices offer glass coverage with or without a deductible.

6. Uninsured and Underinsured Motorist plan

This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver.

Underinsured motorist coverage comes into play when an at-fault driver has insufficient auto insurance to pay for your total loss. This policy will also protect you if you are hit as a pedestrian.

Can I drive legally without car insurance?

NO! Almost every state requires you to have automobile insurance. All states also have financial responsibility laws. This means that even in a state that does not require liability insurance, you need to have sufficient assets to pay claims if you cause an collision. If you don’t have auto insurance assets, you must purchase at least the state minimum amount of agreement. But automobile insurance exists to protect your assets. Trying to see how little you can get by with can be very shortsighted and dangerous. The automobile insurance industry and consumer prices generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident since accidents may cost far more than the minimum limits mandated by most states.