There are about 6,000 insurance companies across the United States. A large proportion of these insurers offer car insurance.

With so many companies and policies to choose from, it can be a total nightmare trying to figure out what’s the best car insurance policy for you.

In general, there are around six types of car insurance you can consider. If you want to learn more about these policy types, you’re in the right place.

Here’s a guide that runs through each insurance type so that you may get a gist of what might work for you best. Then you can go on to do further research and get your insurance sorted with little or no hassle at all.

Read on to get the lowdown!

BI Car Insurance Policies

Bodily injury liability insurance (BI) pays the medical costs for others if you injure them in an accident. However, you will only pay this insurance out if you were found to be the one at fault in the accident.

If you are going to get this insurance, a good tip is to list anyone else that drives your vehicle on the insurance. Then, these people will be covered in the same way you are if they cause an accident.

PD Car Insurance Policies

Property damage liability insurance (PD) policies are a step up from BI ones. While BI insurance covers other people’s injuries when you are at fault, PD policies also cover the damage to other people’s vehicles.

It may be that you just damage another person’s car, but this insurance also covers you if you damage other property that they own. Just make sure you understand the policy enough to know the payout limitations.

PIP Insurance

Personal injury protection (PIP) insurance covers you and any passengers you may have in your vehicle at the time of an accident. This insurance will pay out medical bills for any injuries you incur.

Sometimes, car insurance options of this type are called medical payments insurance. They will even cover funeral costs in case of death.

Collision Insurance

Collision insurance will pay for the damages to your vehicle in the event of an accident. This can be if you hit a stationary object or another vehicle.

Buying car insurance like this will cover your vehicle, but also any property you have in your vehicle. Check out landmark insurance for this type of cover.

Comprehensive Cover

If you’re after cheap car insurance, this might not be the best choice for you. However, it’s worth the investment for peace of mind.

Comprehensive insurance covers you for damage that’s not related to a collision. It will also cover you for theft, making it possibly the best car insurance.

Uninsured Motorist Coverage

If you have a collision with an uninsured motorist, you’re going to want to have uninsured motorist coverage. And uninsured motorists are more common than you might think.

This type of insurance also covers your needs even if the other driver at fault has some form of insurance, but one that’s not adequate to pay out your needs. Whatever the case, it’s a wise policy to have.

Know the Various Types of Car Insurance You Need

As you now know, there are various types of car insurance to consider. Our best advice now is to find a reputable company that will talk you through all their policies and finds a fitting one for your budget and needs.

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