What is Covered by My Policy ?
1. Bodily Injury Liability
This type of coverage is covering injuries that you, as the driver or policyholder, cause to another person. You and family members shown on the policy will also be covered when driving another persons car if you've recieved their permission.
If you don't have enough liability coverage and are involved in a serious accident, you could be taken to court for a lot of money. Always get more than the state-required minimum amount of liability insurance to protect your valuable assets.
2. Personal Injury Protection or "PIP"
This will cover injuries to the driver and passengers of your car. This will typically cover hospital bills or even funeral costs associated with the accident. In states like Colorado, this type of coverage used to be manditory. But the latest changes in the law make it an option, so most people rely on their own health insurance to cover these occurences.
3. Property Damage Liability Coverage
This will cover you for any damage you cause to property that is not your own. This will typically cover the other persons automobile, but can also pertain to thier fence, mailbox, or public street signs, etc.
4. Collision
Having this coverage will pay for damage resulting from your car hitting another car, stationary object, or damage to your car from rolling over without hitting anything, or due to potholes. Collision insurance coverage usually has a deductible of between $250 and $2000, and will reimburse you for damage to your car (minus your deductible) even if you are at fault. It is usually best to get a higher deductible and save money in premium because you probably won't use your auto insurance collision coverage enough to justify the expense of a lower deductible. If you weren't at fault for the accident, your insurance company will try to recover the expenses from the other drivers insurance company. If they are able to do that, they will probably reimburse your deductible as well.
5. Comprehensive
This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, explosion, earthquake, falling objects, windstorm, hail, flood, vandalism, riot, missiles, or hitting animals like birds or deer (that don't have insurance).
Comprehensive insurance will usually have a deductible between $100 and $500, again you will want to get the highest deductible you can get.
6. Uninsured and Underinsured Motorist Coverage
This will cover you, a member of your family, or a designated driver if one of you is hit by an uninsured, underinsured, or hit-and-run driver that you cannot find.