Liability

• There are various types of liability coverage that pay for damages caused by insured drivers. Bodily injury liability, or BIL, pays the medical expenses of people hurt in accidents caused by the insured drivers. BIL also covers their lost wages. Property damage liability covers damage to third parties' property. All liability claims are paid by the insurers up to the policies' coverage limits. Every state besides New Hampshire requires vehicles to be covered by specific amounts of liability while in operation.
  
  

Medical Payments

• Auto insurance policies feature various types of coverage that pays for medical expenses for those injured in accidents. MedPay, or medical payments, coverage pays the medical expenses of the driver as well as that of their passengers. This coverage also pays for the drivers' medical bills if they're driving someone else's car with their permission. Personal injury protection, or PIP, coverage pays the medical expenses and any lost wages of the drivers and their passengers. Uninsured/underinsured motorists coverage kicks in and pay the drivers' medical bills when they're hurt by individuals who don't have insurance or their coverage isn't adequate to cover the costs.
  
  

Property Damage

• There are two main options for drivers to purchase for covering damages to their vehicles: collisions and comprehensive. Collision coverage pays for repairs after the insured cars were involved in accidents. Comprehensive coverage covers car damage that isn't the result of accidents. These incidents include vandalism, theft, natural disasters or striking animals such as deer.
  
  

Tips

• Drivers can lower their premium payments by increasing their deductibles, which are amounts that must be paid out of pocket first before insurers pay for claims. Windshield repairs can be replaced without satisfying deductibles, but this stipulation varies from state to state. Drivers can add certain features to their policies to help them when their cars don't work. These extra features include roadside assistance, towing and labor, and gap insurance, which pays drivers the actual costs of their cars after insurers declare the vehicles "totaled" after accidents. Generally, cars are considered totaled if repair costs are more than 70 percent of its value, according to Insure.com.