Car insurance protects you financially if you're involved in an accident or your vehicle is damaged. Here’s a clear overview of each type:

• Liability Coverage: Covers damages and injuries you cause to others. Required in all states except New Hampshire.

• Collision Coverage: Pays for damage to your own vehicle resulting from collisions with objects or other vehicles. Collision coverage might be required by your lender if you have an auto loan.

• Comprehensive Coverage: Covers non-collision damages such as theft, vandalism, weather events, falling objects, and animal-related incidents. Like collision coverage, comprehensive is typically required by lenders if your vehicle is financed.

• Uninsured Motorist Coverage: Protects you financially if you're in an accident with someone who doesn't have insurance. This type of coverage is mandatory in certain states and highly recommended everywhere due to the number of uninsured drivers.

• Underinsured Motorist Coverage: Provides coverage when the at-fault driver has insufficient insurance to fully cover your expenses.

• Personal Injury Protection (PIP): Covers medical expenses, lost wages, and sometimes other costs like childcare or funeral expenses, regardless of who is at fault in an accident.

• Medical Payments Coverage (Med Pay): Similar to PIP but typically only covers medical bills and not lost wages or other expenses.

Consider the financial implications and your personal resources when deciding which types and amounts of coverage are right for you. Full coverage (liability, collision, and comprehensive) is often recommended, especially for newer cars or financed vehicles.