When you decide to get auto insurance there are six main coverages that are included in most policies. They are each priced separately and have different premiums. They include:

• Bodily Injury- This covers anything that may happen to you, any injuries you may incur while getting into an accident. This also covers family, or anyone else listed on your policy. This can even cover you if you are driving someone else's car.
• Personal Injury Protection- Commonly referred to as PIP, will cover your medical bills as well as lost wages as result of the injuries. In extreme cases it can cover the costs of a funeral.
• Property Damage- This covers damage that you may cause, with your car, to someone else's property.
• Collision- The most common insurance coverage, collision coverage pays for any damage your car incurs. This includes any accident you may have, no matter who is at fault.
• Comprehensive- Comprehensive coverage covers your car from pretty much anything that is not caused by a collision. If your car sets on fire, gets vandalized, natural disaster, etc.
• Uninsured Coverage- This coverage will cover you if the person who hit you, or is at fault for the accident, does not have insurance. It also covers a hit and run or if you are hit while out of your car.

When you get a new auto insurance plan you have a premium, the cost of it, and a deductible. The deductible is how much of the damage you will pay out of your pocket. Let's say you got into an accident and it is going to cast $2,000 to fix your car. If your deductible is $500, you will only pay that amount and the insurance company will pick up the other $1,500. The higher your deductible is, the lower your premium will be which will lead to a lower monthly payment. Choosing a deductible can be kind of a gamble, so if you never get into accidents it might be a better idea to have a higher deductible.

Standard home owners insurance has four major types of coverages:

• House structure- This covers anything damage that occurs to the structure of your house and its surrounding features (garage, backyard, etc.). Damage from such things as fires and earthquakes are covered on this policy. Depending on how much insurance you have it can even cover the cost of rebuilding your house.
• Personal Belongings- Your home is not just your house, it is also what you have inside your house. This plan covers your personal belongings and can even cover them anywhere in the world. If your house burns down or your belongings get stolen, you will receive compensation for all the stuff you lost. This also includes plant life in your front for backyard.
• Liability Protection- It is never fun to think about, but if someone gets injured on your property you are liable. The insurance company can pay for those medical bills as well as any court costs you may incur in the process.
• Additional Living- This covers the costs of living while your house is being repaired or rebuilt. This includes food, hotel bills and other living expenses.

A major problem can be flooding, because normal home owners insurance does not include flooding. If you are in an area that floods then it is a good idea to get flood insurance. Unlike car insurance you are not required to have home owners insurance, although most mortgage lenders will require you to have it.