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Liability
In most states this is the only required insurance for a driver. It covers bodily injury and property damage to others in the event that you are to blame in an accident resulting from the ownership, maintenance or use of your car. (Should you be involved in an accident in which you are not to blame, the other party's insurance will cover you, or so the theory goes.) Different states require different amounts of liability. Check with your state's Insurance Department to determine the amount.

Collision
This type of insurance covers your vehicle during an accident.

Comprehensive
This insurance covers your car for damage to the policyholder's car that doesn't involve a collision with another car, such as theft, fire and vandalism, among other things.

(related article How to Buy Insurance)

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