understanding auto insurance

types of coverage
bodily injury (bi)
if you injure someone in a automobile accident for which you are to blame, this coverage will pay claims for injury or death against you and the cost of legal defense
property damage (pd)
this is like bodily injury liability coverage except that it pays for at-fault damage that you cause to someone else's vehicle or property, and for which you are legally liable. this does not cover your car or property.
medical payments
this coverage pays for medical, hospital or funeral expenses for you and others injured or killed while riding in your car, regardless of fault. it also covers you and your family members if struck by a car as a pedestrian or if riding in another car
uninsured motorists (UM)
if you of your passengers are injured by someone who does not carry automobile insurance, UM coverage will pay for injuries up to your policy limits. this includes medical expenses, loss of wages or related expenses. also applies if you are a victim of a hit-and-run
underinsured motorists (UIM)
pays for death and injury expenses to you or occupants of your car when the other person's insurance is inadequate. fills the gap in protection between the at-fault driver's bodily injury liability coverage and your UIM coverage
uninsured motorists property damage (UMPD)
covers damage to your vehicle if involved in an accident with an at-fault uninsured motorist. when you purchase collision coverage for your auto, this coverage is not available or needed.
pays for damage to your car from an accident regardless of fault. it usually includes a deductible, which means that you pay the first $100 or $200 or so for repairs to your car and the company pays the rest. selecting a larger deductible lowers your collision premium
pays for damage to your car caused by most anything other than collision. Glass breakage, theft, fire, explosion, impact with an animal, vandalism, flood and earthquake are some of these hazards. this coverage is also available with deductibles to lower your premium
towing and labor
an extra coverage that pays up to a stated amount for towing your car and any labor required at the scene when your car becomes disabled.