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With a huge number of insurance providers, the auto insurance sector has become quite competitive. You may get lured by the attractive discounts and lucrative offers presented by these providers but this may eventually land you in a big trouble as cheap insurance may not provide the required insurance coverage. Depending on the various aspects of an accident, there are various basic as well as optional auto insurance coverages. These coverages aim to protect you from the losses suffered by you as a result of an accident caused by a third party or help you from the losses suffered  by others through an accident caused by you.

There are certain factors that must be considered before purchasing auto insurance. The type of vehicle you have and its usage is one of the most important factors. The amount of money you intend to spend, the overall cost of the vehicle and a detailed knowledge about the state laws are some of the points that you should look into before settling on a particular insurance. Auto insurance is based on various components and allows you to select the specific insurance according to your requirements. Here are some important coverages which you should consider in an insurance policy so as to fulfill the intention of buying insurance.

The Bodily Injury Liability

 Bodily Injury Liability coverage comes into play in situations where a person is injured by an accident caused by you. This insurance is compulsory in most states and it does not pay for the damages suffered by your vehicle or injuries suffered by you. It basically takes care of the medical expenses of the other person and depending on the coverage limit it may also pay for the cost on legal procedures. If the accident cost exceeds your coverage limits then you will have to pay the balance amount.

Collision Auto Coverage Insurance

 This coverage allows you to fix a deductible amount. In case of an accident, this coverage provides financial aid for repairs after subtracting the deductible amount fixed by you. The higher the deductible amount, the lower is the insurance cost. This deductible amount should be fixed depending on your paying capacity. This coverage only takes care of the cost of damages to your automobile caused by you or a third party or by an external object.

Property Damage Liability Coverage

 This coverage is applicable for the damages suffered in an accident caused by you. It not only takes care of the third party’s vehicle damage but also pays for damages caused to some other property or house in course of the accident. However, the payment by the insurance provider depends largely on the limit set by you.

Personal Injury Protection

 Personal Injury Protection takes care of the costs for the injuries caused to the driver, related family members or all the people seated in the car during accident. In this insurance a fixed amount is settled upon and payments are done within this amount which is usually tantamount to $10000. It also bears funeral costs, expenses for loss of wages and loss of jobs.

Comprehensive Auto Insurance Coverage

This coverage bears the costs of damages caused to your vehicle due to factors like theft, vandalism, fire, natural calamity. It basically bears the repair costs of your vehicle caused by factors other than collisions.

Uninsured Motorist Coverage

 This coverage is viable in situations where the driver at fault is not insured or inadequately insured. This insurance is applicable only if you do not possess collision auto coverage insurance. In this insurance, a fixed amount is set and payments are done accordingly.

Mike Fischer is an automotive blogger with UnoCarDealers – a site for buying and selling cars, find car dealers, and car related info. He can be contacted at mike.fischer [at] unocardealers [dot] com with requests for content – for blogs, websites, and newsletters.