Each auto insurance policy is different, but most provide coverage for the same basic items. If you are in an accident, for example, a standard policy generally will cover expenses for medical bills, wage loss, property damage, and other costs.

In addition to the specific terms of your policy, a majority of states not only require that you carry insurance but have specific guidelines about the minimum amount of coverage required under the law. In Michigan, for example, drivers must have a no-fault insurance policy, as well as coverage which includes bodily injury/property damage, personal injury protection, and property protection insurance. This coverage, however, does not include theft or damage, and some may choose to carry collision and/or comprehensive coverage in addition to the basic requirements under Michigan law. You can find out the minimum requirements in your state by following this link: http://www.carinsurance.com/state/.

There are six basic areas that your auto policy can include: bodily injury liability, medical payments or personal injury protection (PIP), property damage liability, collision, comprehensive, and uninsured/underinsured motorist coverage.

• Bodily injury applies to injuries that you or another designated driver on your policy cause to someone else.
• Personal injury protection pays for the treatment of injuries to the driver and any passengers in the policyholder's vehicle. In addition to medical expenses, PIP also can cover lost wages, the cost of replacing services of someone injured in the accident, and funeral costs.
• Property damage liability pays for any damage you cause to someone else's property (e.g. car, fence).
• Collision coverage pays for damage to your car due to a collision with another vehicle or object or due to loss of control of your vehicle (e.g. flipping over). Damage caused by potholes also can be covered.
• Comprehensive coverage covers losses due to theft or damage caused by something other than a collision with another vehicle (e.g. deer, fire).
• Uninsured/underinsured motorist coverage will reimburse you if an uninsured driver or a hit-and-run driver hits you.