The purpose of auto insurance is to provide protection for the insured against liabilities and losses incurred from traffic accidents.
There are many types of auto insurance coverage available. California laws require that Personal Liability and Property Damage coverage, often referred to as PL and PD, are secured for every auto and every driver of that auto. These two categories fall into the general types called Liability and Collision, respectively.
Other than PL and PD, here are the common types of coverage:
Comprehensive: This is coverage that will pay for any loss or damage to the insured vehicle that is not a result of an accident. This includes theft, vandalism, fire or other natural hazards.
Medical: Medical coverage pays for medical expenses in the case of an accident, regardless of whose fault the accident is.
Uninsured and Underinsured Motorist: These two types of coverage pay for damages to the insured auto when an accident is caused by a driver who has no liability insurance or insufficient liability insurance, respectively.
Rental Reimbursement: In the case of an insured auto being damaged in an accident rental reimbursement insurance pays the cost of renting a vehicle while the insured vehicle is being repaired.