There a number of insurance companies out there, and several more on the internet. Finding the right company can be an overwhelming task. Getting cheap auto insurance online is a more practical option as it is more convenient and straightforward. Understanding the types of coverage can help you make a better decision on the insurance package.

1. Liability:

This is the most important type of insurance coverage. It pays for all damages in an accident - of the insured person as well as others who got injured in the accident. It covers bodily injury and property damages. For instance, if the "insured" hits someone on the road, this type of insurance can cover medical expenses, and property damage of the "insured" and the victim. Plus, it also covers defense and court expenses.

2. Medical payments:

It covers only the medical expenses (up to a specific limit) not considering fault in case of an accident. However, it covers the "insured", and his/her family members.

3. Uninsured motorist:

it is short term car insurance. If an uninsured or unidentified person causes the accident and flees away, then the victim can avail uninsured motorist coverage to pay for the cars damages.

4. Collision:

Covers the damages caused to the car in case of an accident

5. Comprehensive:

Covers the damages caused to the car in cases other than accidents like theft, fire, natural calamities, etc.

6. Rental reimbursement:

It pays for a rental car if the vehicle of the "insured" is damaged and under repair.

Insurance may seem like money going down the drain. However, its true value will be realized when a person incurs great losses during an accident or theft. So, it is advisable not to wait for such a catastrophe to realize the importance of insurance coverage. And for people who are looking for cheaper car insurance, there is an important piece of advice - being under insured is the same as being uninsured. Do not compromise on the package to save just few dollars.