A personal auto policy is a contract between you and your insurance provider that outlines the conditions under which you'll be covered in the event of an accident. It typically includes four primary parts to cover both liability and physical damage coverage:
Liability Coverage: Liability coverage helps cover other people's costs if you cause an accident. This includes medical bills, property damage, and legal fees. Generally, it is divided into two different parts: Bodily Injury Liability Coverage and Property Damage Liability Coverage.
Collision Coverage: Collision coverage pays for damages to your car caused by a collision with another vehicle or object. This coverage usually pays for repairs or replacement of the vehicle, up to its market value.
Comprehensive Coverage: This coverage pays for non-accident related damages to your car such as fire, theft, vandalism, and other perils.
Uninsured/Underinsured Motorist Coverage: Uninsured/underinsured motorist coverage helps to pay for your own losses when another driver does not have insurance. This can include medical bills, lost wages, and other related costs.
Each of these components is designed to protect you in different ways and it's important to understand the differences between them. If you have any questions about the specifics of your policy, your insurance provider should be able to provide you with further information.