The 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

The single-limit coverage gives one number that is the maximum coverage for bodily injury and property damage altogether - regardless of the number of people involved or amount of property damage.

Uninsured motorist coverage will usually reimburse you and anyone in your vehicle for any bodily injury and medical expense or death from an auto accident caused by: 1. a driver with no insurance 2. a hit-and-run driver 3. a driver of a stolen car It does not cover property damage. Underinsured coverage provides bodily injury coverage when the negligent driver has some insurance, but it is insufficient to cover your bills. Underinsured motorist coverage pays the balance -- up to the limit on your policy.

If you have an older car that is not being financed, you can probably save money on your monthly premium by dropping collision coverage from your car insurance policy.

Yes. Many companies offer an endorsement for "miscellaneous" vehicles in an existing auto insurance contract. In addition to motorcycles, those vehicles can be mopeds, motor homes and dune buggies.

No. Bodily injury liability insurance covers damage resulting from an accident involving any of your covered autos, for which you are responsible. Members of your family and others with permission to drive your car are also covered. Likewise, if you are driving someone else’s car, their liability policy would normally provide the coverage.

If you are not in a no-fault state, you are probably not required to have medical payments insurance. Medical payments insurance pays medical expenses that result from an auto accident, regardless of who is at fault. It covers people riding in your car. It also covers you and your family if you are hit by a car while you are walking, or if you are injured while riding in someone else's car (after the limits of the driver's insurance are reached). Medical payments insurance will also pay for funeral expenses in the event of a death.

The theory behind no fault car coverage is that most claims can be settled without litigation and without determining who is at fault. According to the no fault theory, this would eliminate major costs and speed settlement. Under no fault, your insurance company pays you for small claims.

You must pay the deductible amount before receiving money from the insurance company. In other words, the insurance company will deduct the deductible amount from any settlement. This means that if you have a $1,000 loss and your deductible amount is $400, the insurance company will pay you the amount in excess of the deductible, which is $600.

Your auto insurance policy normally covers you, your spouse, other relatives who live in your household, and others who have permission to drive your car. An exchange student living in your house, to whom you have given your permission to drive your car, would normally be covered. However, you should notify your insurance agent that you have an additional driver and confirm that the student will be covered.