The basic auto insurance is a liability coverage. If you are held liable in an auto accident, the liability coverage pays for the damages done onto the other party’s car or property. But it does not pay for the injuries nor the medical bills incurred by you.

Depending on the plan you are on, the insurance company will also pay for the repairs and replacements of your car. A plan that includes a personal injury protection will compensate your injuries with cash and also pay for your medical bills if any. Some plans will also compensate you for the possible loss of income. Plans with an extensive personal injury protection is more costly.

Another type of coverage is the collision protection. It covers physical damage which is defined as the damages done from colliding, hitting or is hit by another vehicle or an object. It also covers if your vehicle is involved in a roll over accident. The collision protection is optional but is popular because it gives you protection regardless of who is at fault. It is advisable for newer cars and if you are still financing or leasing your vehicle.

A full coverage auto insurance is one that covers physical damage to your car including collision damage. The full coverage or comprehensive auto insurance will also compensate you if your car is vandalized, glass breakage or stolen. Depending on the insurance company’s plan, the comprehensive coverage will also include damages incurred in a storm or caused by an inanimate object. Keep in mind that a comprehensive insurance covers physical damage so it does not cover for bodily injury or property damage.

An auto insurance only gives you coverage when involved in an accident and does not cover for mechanical repairs or services. The insurance company is not responsible for your regular maintenance and any mechanical work, such as changing your brake pads.

However, it is your responsibility to protect your vehicle and pay your premiums on time to avoid a policy lapse. Insurance companies have flexible plans. Depending on your needs and budget,
insurers may offer payment schemes that allows you to pay your premiums monthly, quarterly, half-yearly or for the full year.