There are many different auto insurance policies available. The auto policy terms and coverage can differ greatly between different automobile insurance policy companies. Because forty-seven states in the United States require an automobile owner to have at least some type of insurance it`s advisable to inform about the minimal automobile policies that are accepted in your state.

There are many auto policies for additional coverage as well. In fact most auto insurance policies are made up of different types of insurance coverage. They are a bundle of policies which, when combined, forms your auto policy. Like mentioned above, it must at least contain the auto use policy that is required by law in most states.

The types of insurance offered in auto insurance policies can be divided into 8 types of automobile coverage. Many auto policies offer a combination of these types of coverage for you to choose from and have a directory from which you can choose. The 8 types are:

1. Collision: Pays out only for the damage that was done to your vehicle when you collide with another car or object.

2. Comprehensive: All loss and damage that isn`t caused by an accident, like theft or weather spells, is covered with this type of coverage.

3.Medical coverage: no matter who`s fault the accident was, medical coverage is granted with this type coverage.

4.Personal Injury Protection (PIP): no matter who`s fault the accident was, medical coverage is granted for the person who is insured.
5.Uninsured driver: will cover the costs of damage to your car if the driver hasn`t got any insurance coverage.

6.Underinsured driver: will cover the costs of damage to your car if the driver hasn`t got sufficient insurance coverage.

7.Rental reimbursement: will allow you to rent a car for a certain period of time if you own car gets damaged.

Depending on what type of car you have and the frequency you use it, you can make a decision on which auto policy items you really need (keeping the laws of your state in mind) and which terms could be excluded in your policy. Auto policy discounts may apply if you take additional coverage in your automobile policy.