Auto Insurance is not a federal requirement, but it is a requirement for anyone who drives in most states. In addition, all states require motorists to prove they are financially able to pay on any claim that is presented to them at any time. In general, few people have the capability to prove they can pay millions in the event of a large claim. Auto insurance is broken down into a number of different categories depending on the type of claim that could possibly be presented. While there are many different coverage options that you can add to a policy, there are six basic types of coverage: Bodily Injury Liability Property Damage Liability Collision Comprehensive Uninsured/Underinsured Motorists Coverage Medical Payments or Personal Injury Protection (PIP)
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