What are the different types of policies and what do they cover?

Auto insurance is divided into several types of coverage:

• Liability covers damage you cause to other people’s property and injuries to the people.

• Collision covers damage to your own vehicle in an accident.

• Comprehensive covers losses other than collision, such as fire damage to your vehicle, break-ins, vandalism or theft, as well as natural disasters (earth quake, hail, hurricane, flood, etc.).

• Medical payments insurance, usually in the range of $1,000 to $5,000, covers medical expenses for injuries. This “good-faith” coverage guarantees imme- diate medical payments for you, and your passengers, regardless of who is at fault. It also covers you and members of your household as pedestrians if struck by an automobile.

• Uninsured motorist (UM) and underinsured motorist (UIM) coverage protects you if you are injured in an accident caused by others who carry insufficient or no liability insurance.

• Extra coverages include expenses for towing, labor, “no-fault” coverage, etc. These are generally provided as add-ons or “endorsements” to your policy.