Car insurance is an important asset for any driver. It helps protect your car, as well as yourself, from financial loss in the event of an accident or other mishap. There are a variety of coverage options available when selecting car insurance, and understanding these can help you select the best policy for your needs.

Liability coverage is generally required by law and pays for damages that you cause to others' property or people in an accident. It also covers medical payments regardless of fault. Collision coverage will pay for repairs to your own vehicle after a collision with another vehicle or object, while comprehensive coverage will cover things like theft, vandalism, hitting an animal, and fire damage. Both of these types of insurance may be subject to a deductible which must be paid before benefits are issued.

Other optional coverages include gap insurance which pays off the remaining balance due on a loan if the car is totaled; rental reimbursement which pays for a rental car while yours is being repaired; and uninsured/underinsured motorist protection which provides compensation if you're injured in an accident caused by someone who has no insurance or not enough liability coverage. It's important to review all available options when shopping for auto insurance so you understand what each type of coverage does and how it can benefit you financially.