Liability

• Buy liability insurance if you simply need to meet legal requirements in your state and are not concerned about replacing the car if it is damaged. Liability is the most basic form of car insurance that is typically the minimum amount required by law in most states, according to PlentyCar.com.
  
  Liability usually involves three separate types of coverage that include property damage, bodily injury and uninsured motorist insurance. Property damage liability insurance will cover the replacement and repair of someone else's car if you are held liable for the accident that caused the damage. Bodily injury works in the same way, except the insurance will pay to cover bodily injury and death expenses. Uninsured motorist insurance is the only portion of the liability insurance policy that may pay to fix your car. If someone else is determined to be at fault in an accident and they do not have insurance, some liability policies will pay for repair to your vehicle.
  
  

Comprehensive

• Add comprehensive insurance to your auto policy to cover damages that do not result from a crash, according to CarInsurance.com. Comprehensive policies will pay to repair the covered vehicle in the event that something other than a collision damages the car. Qualifying causes for the damage may include fire, theft, tree limbs that fall on the windshield, hail damage or other acts of nature among other causes. Each policy should be reviewed to see what is covered and what is excluded.
  
  When the policy is signed, you agree to a deductible. This deductible is how much you will have to pay out of pocket for such an incident. This amount ranges from zero to $1000 or more, depending on the policy.
  
  

Collision

• Collision insurance is exactly what it sounds like. This coverage takes care of the expense of damages caused when your car hits or is hit by another vehicle or object. The insurance will pay to fix the vehicle less the agreed deductible amount, according to CarInsurance.com.
  
  Choose a higher deductible to considerably reduce the amount you pay for insurance premiums. If your car is a newer model or is in excellent condition, you probably want to have collision insurance on your policy. If your car is financed, the lender will probably require you carry collision insurance as a part of the loan agreement.
  
  

Personal Injury Protection

• Add personal injury protection to your auto policy if it is offered in your state to cover medical expenses or funeral costs of those hurt or killed in the vehicle. The insurance usually covers the policyholder and his or her family, as well as anyone in the car at the time of the accident and pedestrians that may be struck, according to CarInsurance.com.