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A majority of states in the US requires motorists to purchase car insurance policies if they own a vehicle. While the laws will differ from state to state, it is mandatory that all motorists have basic auto insurance coverage. If you are a first time insurance buyer and you are wondering what types of car insurance coverage to purchase, consider the following tips:

Collision Coverage

This coverage type means the insured party will get compensation from the insurance company if his or her vehicle is damaged in collision with another vehicle. The insurance company, regardless of who is at fault, will shoulder any repair costs.

Comprehensive Coverage

The insured party will obtain compensation from the insurance company for damages or losses incurred during a collision. This coverage option also provides compensation from the insurance company for any damages caused by natural disasters such as fire, earthquakes, etc.

Bodily Injury Liability

This offers protection to the insured party when his or her vehicle is the one at fault, causing injuries to the other vehicle. The insurance company will also provide legal costs in case the other party files a lawsuit in court.

Property Injury Liability

This coverage is very similar to bodily injury liability. The insurance company will shoulder the costs for any property damages that occur during an accident. This also means the insured party will get legal defense when the other party files a lawsuit for the damages.

Personal Injury Protection

When the car insurance policy holder purchased a personal injury protection, the policy will cover the medical treatment expenses when someone using your vehicle is injured during an accident. Additionally, the policy will cover for lost wages of the person injured in the accident.

Uninsured/underinsured Motorist Coverage

If an underinsured or uninsured motorist caused an accident and you or any other person in your vehicle has sustained injuries, you will be compensated due to the uninsured/underinsured motorist coverage.

These are just some of the many important policy coverage to consider purchasing when checking various insurance policies. It is important that you buy the right coverage for your needs. For more car insurance information, browse through our article section.