Auto Insurance is currently mandatory in every state in the india, though the type of insurance required can differ from state to state. In most states bodily injury and property damage liability insurance are standard. Some of the other more commonly used types of insurance include uninsured motorist, under insured motorist, and personal injury protection.

he basic types of auto insurance coverages are:
1. bodily injury liability, which provides coverage for bodily injury claims from the people you might injure in an accident

2. property damage liability, which covers any property damages to third parties -- such as another person's car you damage -- which you cause or are responsible for

3. medical payments to the policy owner and other passengers in the policy owner’s car

4. uninsured and underinsured motorist coverage, which protects you when the negligent driver has no insurance or insufficient insurance (in most states, this covers only bodily injury losses -- though some states also include property damage losses)

5. physical damage covers damage to your car

Special Car Insurance
This kind of auto insurance is designed for vintage, classic and collectible cars. It has all the benefits that comprehensive insurance offers, so you are protected against all possible scenarios. Keep in mind that special car insurance does impose a certain limit– you can only drive your vintage car for a limited number of road miles a year. Be sure to talk to your insurance agent thoroughly about this matter.

Comprehensive Auto Insurance
This is the most common type of auto insurance. It is usually used for brand new to almost new cars and vehicles that still have a relatively high market value. This kind of insurance protects the owner against every possible thing that could go wrong – theft, injury, damage, etc. Filing for a claim is a snap – there is no need to show fault. Because of this, rates of comprehensive auto insurance tend to be high. It’s a good idea to avail of this type if you can afford it, because it can give you peace of mind.

Fire & Theft Auto Insurance
As the name implies, you can only file for a claim under this type of insurance if you are at fault in a given accident, in the event of fire and if your car gets stolen. If you hit a wall or if another car hits you, you cannot claim for anything (you should instead let the insurance company of the person who hit you pay for the damages). This insurance is inexpensive, and is ideal for people who drive older cars that have already depreciated in value.

Understanding auto insurance
makes it easier if you plan on purchasing in the future. You have looked at Bodily Injury Liability, Medical Payments or Personal Injury Protection (PIP), Property Damage Liability, Collision, Comprehensive, Uninsured and Underinsured Motorist Coverage. In analyzing each policy we get to see what each one has to offer. In doing so it allows the potential purchaser of insurance to have the best information available for making the choice on their auto .