Car insurance is the most bought type of insurance in the United States of America. There are more cars than people in America and couple that with various States making car insurance mandatory; you have something that is in high demand. With so many people demanding insurance it will always be best to be informed about the various aspects of motor vehicle insurance. To be informed, the article will examine the different types of vehicle that exist on the consumer market.

Bodily Injury Liability is an insurance policy that covers drivers of another car. If the policy holder is in an accident and another driver is hurt then the medical costs will be covered by bodily injury liability This mainly benefits policy holder as he does not have to worry about being sued.

Medical Payments or Personal Injury Protection (PIP) is similar to Bodily Injury Liability. The difference between the tow is the fact that the policy holder and associated passengers are covered in the case of an accident. This means they are entitled to have their medical bills, loss of wages and even death is covered.

The Collision insurance policy is one of the most common and cheapest car insurance policies available. With collision the insurance company will pay for the damage or repairs if another driver crashes into you. This usually requires drivers to have a deductible and once the deductible is paid, the insurance company will pay for the rest.

Under Property Damage Liability car insurance policy, the insurance company will cover the cost of repairs to the other party’s motor vehicle in the event of an accident. Under this policy, the insurance company will pay for the person’s damage and repair costs.

Uninsured and Underinsured Motorist Coverage will usually protect the policy holder in the event that someone with no or insufficient insurance crashes into his vehicle. If it happens to be a case where it was a hit and run, then the policy holder will be protected.

Comprehensive coverage is another popular policy for motor vehicle owners. With comprehensive coverage the car is covered from a wide array of things. The car will be protected from fire, theft acts of God and collision with other vehicles. Policyholders need to pay a monthly deductible. Once this is paid in the event of an accident, the insurance company will cover the rest.

Understanding vehicle insurance makes it easier if you plan on purchasing in the future. We have examined Medical Payments or Personal Injury Protection (PIP), Property Damage Liability, Uninsured and Underinsured Motorist Coverage, Collision, Bodily Injury Liability, Comprehensive. By investigating and understanding the different policies, we are able to see what differences and similarities they offer. This enables consumers to have insight and knowledge into the best car insurance for their car and the one that offers the best coverage options.