When it comes to insurance, there are several different types of insurance you can get.  Car liability insurance pays for any property or bodily damage a person may occur due to you hitting them with your car.  You are required to have at least car liability insurance in order to legally drive.  Different locations have different minimum liability insurance requirements.

Bodily injury liability insurance deals with any injuries the car owner and their covered family members cause.  This car liability insurance also covers you and your listed family members when you are driving another person’s car with their permission.  Of course, you can purchase more than just the bodily injury liability minimum.  In fact, many choose to do so since if you cause a serious accident, you could be sued for a lot of money.  You want as much protection as possible in that case.

You also need property damage liability insurance.  This insurance covers the second type of damage in a car accident: damage to property.  It includes other cars, buildings, and anything else that may be damaged in an accident, such as telephone poles, lamps, and fences.

Car liability insurance is contrasted by comprehensive insurance, which covers much more.  Comprehensive packages include covering the cost of the car if it is stolen or damaged by a fire, hail, vandalism, or anything other than a car collision.  Comprehensive insurance is, naturally, more expensive.