A car insurance policy comprises of six different types of coverage which are discussed below:

Bodily Injury Liability: This coverage takes care of the injuries that you, as the policyholder or driver of the car cause to someone else. You should have enough liability car insurance to cover the costs of a lawsuit incase of an accident.

Personal Injury Protection (PIP): This car insurance coverage takes care of the injuries to the passengers and the driver of the policyholder’s car, including medical expenses, lost wages and funeral expenses as well.

Property Damage Liability: This coverage includes the payment for the damages you may cause to someone else’s car or property. It also covers structures like buildings, fences and lamp posts that you might have damaged during the accident.

Collision Coverage: Collision car insurance coverage pays for the damage to your car due to a collision with another car, or your car flipping over or being damaged due to potholes.

Comprehensive Insurance: Comprehensive coverage pays for the damages caused by fire, explosions, falling objects, earthquake, floods, hailstorm, vandalism, riots and hitting animals like deer or birds.

Uninsured and Underinsured Motorist Coverage: This type of car insurance coverage will reimburse you the costs if you or any member of your family is involved in an accident by an uninsured driver. It will cover you even if you are hit as a pedestrian by a hit-and-run-driver or underinsured driver.

Many states in USA require you to buy at least some of the insurance covers mentioned here although each state has its own requirement as to which car insurance cover is essential.