Ever wondered what different types of insurance coverages mean? Here are the answers.

• Liability
  Pays for accidental bodily injury and property damages to others. Injury damages include medical expenses, pain and suffering and lost wages. Property damage includes damaged property and automobiles. This coverage also pays defense and court costs. State laws determine how much liability coverage you must purchase, but you can always get more coverage than your state requires.
• Collision
  This coverage pays for damages to your vehicle caused by collision with another vehicle or object.
• Comprehensive
  This coverage pays for loss or damage to the insured vehicle that doesn't occur in an auto accident. The types of damages comprehensive insurance covers include loss caused by fire, wind, hail, flood, vandalism or theft.
• Medical Coverage
  Pays medical expenses regardless of fault when the expenses are caused by an auto accident.
• PIP
  Personal Injury Protection (PIP) is required in some states. This coverage pays medical expenses for the insured driver, regardless of fault, for treatment due to an auto accident.
• Uninsured Motorist
  Pays your car's damages when an auto accident is caused by a driver who doesn't have liability insurance.
• Underinsured Motorist
  Pays your car's damages when an auto accident is caused by someone who has insufficient liability insurance.
• Rental Reimbursement
  This type of coverage will pay for a rental car if your car is damaged due to an auto accident. Often this coverage has a daily allowance for a rental car.

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