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There are many types of auto insurance for your car, trucks, motorcycles and boats. While policies differ from one to another, they offer protection for losses that may incur as a result of a car accident.

There are two types auto insurance commonly available: Collision Coverage and Comprehensive Coverage. While “Collision” pays for repairs or the purchase of a new vehicle when old is damaged beyond repair in accident, “Comprehensive” pays for a new vehicle destroyed by fire or stolen.

There are three types of auto insurance protections. They are:

1. Personal Injury Protection (PIP) is mandatory in most states to pay for owners’ medical expenses, lost income and maintenance of vehicle;

2. Medical Protection (MP) specifically pays for bodily injury medical expenses not covered by personal injury protection, (PIP); and,

3. Legal Liability (LL) pays for damage or injury to a third party caught in accident.

Extra drivers living at the same address with owner must be added to auto insurance policy. While comprehensive insurance covers most details of damage of car and driver, new cars run a threat if they are not covered. Since the ongoing car payments will exceed the value of the car in the long run because its value depreciates the moment it leaves the lot, GAP insurance is created. GAP insurance gives consumers protection to these ‘extra’ costs that arise based on fluctuating developments in the buying market.

Procedures do change state by state. It is always recommended to ask questions. The better you understand the differences of the types of policies and protections they offer, you will be able to select the best coverage for your car, yourself and family just in case it is ever needed.

The Author of the guide to auto insurance terms and definitions will help you understand what you’re buying when you shop for auto insurance. Gena Woodard is owner of several websites created for auto insurance shoppers. For info and resources visit http://autoinsuranceoffer.info today.

Article Source:- articlealley.com