Auto Insurance can be confusing. Here is a brief description of the auto coverages that are available.
Bodily Injury Liability
For injuries the policyholder causes to someone else.
Medical Payments or Personal Injury Protection (PIP)
For treatment of injuries to the driver and passengers of the policyholder's car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident.
Property Damage Liability
For damage the policyholder caused to someone else's property.
For damage to the policyholder's car from a collision. The collision could be with another car, a light post, fire hydrant, etc.
For damage to the policyholder's car that doesn't involve a collision with another car. Covered risks include fire, theft, falling objects, missiles, explosion, earthquake, flood, riot and civil commotion.
Uninsured Motorist Coverage
For treatment of policyholder's injuries as a result of collision with an uninsured driver. Underinsured motorist coverage can also be included in an auto policy. Underinsured motorist coverage comes into play when an at-fault driver has auto liability insurance, but the limit of insurance is inadequate to pay for your damages.