Glossary
Liability Insurance
Coverage that pays for injury and property damage you cause to others.
Required in nearly every state. Has two parts: bodily injury liability (covers people you hurt) and property damage liability (covers things you damage). State minimums are typically too low — most experts recommend 100/300/100 (in $thousands) as a safer baseline.
Related terms
Comprehensive Insurance
Coverage for non-collision damage: theft, vandalism, weather, fire, animal strikes.
Collision Insurance
Coverage for damage to your vehicle caused by hitting another car or object.
PIP (Personal Injury Protection)
Insurance that covers your own medical bills regardless of who caused the accident.