Liability Coverage

• Almost every state in the nation requires drivers to carry a minimum level of liability insurance. Liability coverage covers the damage that you cause to other drivers if you are in an accident. Liability coverage is a necessary component of your insurance coverage.
  
  

Bodily Injury Liability

• Bodily injury liability insurance covers the costs of injuries or deaths that you are may cause. A few examples of coverage would be medical and hospital bills, the loss of income and pain and suffering. If you are in a serious accident and found at fault, you could end up in a lawsuit. You want to carry enough liability insurance to cover any judgments that may be levied against you. Bodily injury liability only covers the other victims in an accident; it does not cover your own medical bills. Carefully review the limits of your liability insurance because you will be responsible for any damages above the limits of your policy.
  
  

Property Damage Liability

• Property damage liability insures you against the cost of damage you cause to another person's property. Under most circumstances this would be damage to another person's car, but property damage liability also covers things like shrubs, houses, garages, trees or fences. Not every state requires property damage liability, but it is something most people should consider. The cost of replacing or repairing a person's car can quickly spiral out of control. As with bodily injury, property damage liability only covers the other person's car. It does not cover the damage to your vehicle.
  
  

Comprehensive Coverage

• Comprehensive covers damages done to your vehicle or cars that you are driving from incidents that are not collisions. Examples of an incident could include theft, fire or flood. Be sure to check what items are covered by your particular policy. If you carry a high deductible on this type of coverage, it will help to lower your premiums.
  
  

Collision Coverage and Uninsured and Under-Insured Coverage

• Collision insurance covers the cost of the damage done to your car in an accident. If you have an older vehicle, that has a low value; it often makes sense to drop this coverage. Again, keeping the deductible high on your collision insurance will help keep your premiums within reason.
  
  Uninsured and under-insured insurance will cover you if the person who hit you has no insurance or does not have enough insurance to cover your claim. This coverage is available in both liability coverage and collision insurance. You should seriously consider this type of insurance if you live in a state with a high percentage of uninsured drivers.