There are six basic types of coverage offered in a policy. When it comes to vehicle ownership, there are many things to take into consideration that go beyond just paying a payment. Vehicle maintenance, tires, where you park your vehicle at night and driving are just a few other things to consider when it comes to your vehicle. In addition, car insurance coverage is an essential component of proper vehicle ownership and responsibility.

Car Insurance is not a federal requirement, but it is a requirement in most states. Its requirements and mandates are regulated at the state level with all states having a special department set aside to make sure these kinds of issues and requirements are met. Not having the proper coverage can result in heavy fines in those states that have required financial vehicle coverage policies.

All states, even the few that don’t require car insurance by law, do however, require motorists to prove they are financially able to pay on any claim or accident presented at any given moment. Carrying the proper coverage is really the only practical way to do this, whether you are just getting by financially or are independently wealthy.

Coverage policies come in many different forms and options. Here are the policies that make up six basic vehicle coverage types:

1. Bodily Injury Liability
2. Property Damage Liability
3. Medical Payments or Personal Injury Protection (PIP)
4. Collision
5. Comprehensive
6. Uninsured/Underinsured Motorists Coverage