Bodily Injury and Property Damage Liability: Limits of liability means there is a limit on the amount your insurance company will pay for accidents for which you are liable. If you are liable for an amount of damage that is greater than the limits in your insurance policy, then you could be held responsible for the difference. For example, if your property damage liability limit is $50,000 and you are liable for an accident that causes $75,000 in property damage, you could be responsible for paying $25,000.
State Minimum Liability: Each state requires that anyone who drives has to carry certain amount of liability insurance. The amounts vary from state to state. To be legal on the road you have to carry liability limits that are equal to or greater than the amounts set by your state.
Uninsured and Underinsured Motorists Coverage: Protects you if you sustain bodiliy injuries or property damage caused by a driver who is liable for the accident and either has no insurance or doesn't have enough insurance to cover the damages.
Physical Damage: This coverage compensates you for damages to your vehicle when no one else is liable, or the person who is liable can not be identified. Collision + Comp = Physical Damage.
Collision covers damages caused by an accident.
Comprehensive (Comp for short) covers fire, theft, and vandalism. It also covers damages caused from hitting an animal.
There is usually a Deductible associated with comp and collision. If you file a physical damage claim, you pay the amount of your deductible toward repairs and the insurance company picks up the rest.
Full Coverage: This is liability plus physical damage. Additional coverages besides these are not automatically included in the price. Some companies throw in towing coverage or rental reimbursement, but there are many that charge extra for these additional coverages.
Total Loss: When the cost of repairing a vehicle is higher than its value, then it is considered a total loss (totaled).
Loan/Lease Gap Coverage: If a vehicle is totaled in an accident or is stolen and not recovered, Gap insurance covers the difference between the value of the vehicle and the amount that is still owed on the vehicle.
Towing and Labor: This is a roadside assistance program available through most insurance companies. There is a limit per occurrence on the amount that will be paid.
Rental Reimbursement or Substitute Transportation: If your vehicle is not driveable due to an incident covered by comp or collision, you will be reimbursed for the cost of a rental car up to the limits stated in your policy. If your limits are 20/600, your insurance company will pay no more than $20 per day up to a maximum of $600.
Additional Equipment Coverage: This covers theft or damage to certain car accessories that are not factory installed, such as CD players, radios, truck caps, custom wheels, pinstriping, and special antennas.
The preceeding is a general overview. Some coverages may be available in your state that aren't listed here. Some of the coverages listed here may not be available in your state or through your insurance company. Review your coverage with your agent so there will be no unpleasant surprises should you need to file a claim.