Types Of Auto Insurance

Getting an auto insurance is quite important if you own a car. In trying to get the best auto insurance available, you should first know what is available out there. You need to know what the different types of auto insurance there are to choose from. Here are more or less the ones that you should know about.

Full Comprehensive Auto Insurance

This type of insurance is the most common type of car insurance policy despite it being also the most expensive. A fully comprehensive car insurance insures your car for all manner of events that may possibly happen. In short it provides protection for you in case you get into a car accident or have your car stolen. One of the better benefits of having this type of car insurance coverage is that car owners don’t need to show fault to claim in cases of car accidents.

But one thing to consider when taking a fully comprehensive auto insurance policy is that you may need to read between the lines. Most insurance companies may not be insuring your car 100 percent. They may only cover as much as 80 percent of the cost, or even less. It depends on how you read the policy to determine just how much a fully comprehensive auto insurance policy covers.

Collision Coverage

This type of car insurance only covers for instances where damage to your vehicle is caused by a collision with another vehicle or object.

Third Party Auto Insurance

This is a basic type of auto insurance where coverage may be quite limited. It usually covers instances where the policy holder gets into a car accident and is at fault and/or hit a third party. All other events may not be covered by this type of insurance. Due to its limitations, it is considered to be one of the cheapest auto insurance coverage available. It is usually the type of car insurance that car owners with old or less valued cars would purchase.

Specialized Car Insurance

This type of car insurance is for car owners who usually own old “classic” cars that have intrinsic value in them. Due to the value of the classic car being covered, this type of car insurance may offer the same coverage similar to what a full comprehensive auto insurance provides. But in this case, a specialized car insurance may have a stipulation that the classic car may only have a limited number of road miles that in can use for any given year to still remain covered. Once again, it is up to the car owners to look at the policy closely to determine such stipulations and if they might be good enough.

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