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Car insurance 6 types of car insurance policy coverages The moment you are planning to buy a new car or shopping for auto insurance, you may need to understand the common types of coverage which are found mostly on a car insurance policy. To help protect you, your passengers and your vehicle in case you are involved in a car accident, there are various types of car insurance coverage for you. Some of these coverages are mandatory, depending on where you live, and some are optional. To help you choose the right coverage for your situation, you are advised to have a better understanding what's required in your state and what each helps cover. Types of car insurance coverage: Auto insurance includes different coverages basically designed to financially protect you in case you are in an accident or your vehicle is damaged. Some types of coverage are mandatory while others are optional and offer added protection. Six common car insurance coverage: 1. Auto liability coverage 2. Unins