What are coverage characteristics of auto insurance?

Auto insurance usually has several components.

Liability insurance is the limit of how much the insurer will pay on your behalf to someone you injure while driving.

Property damage is the limit of how much the insurer will pay on your behalf to someone on account of damage to their property you cause while driving.

Medical Payments / Personal Injury Protection (PIP) pay medical bills up to the limit of the insurance. Fault is not considered.

Underinsured / Uninsured (UM) insurance is there for the benefit and protection of the insured in case someone else is at fault and causes injury to the insured. This is very important insurance.