4 Most Important Types of Auto Insurance

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If you own a car, the law expects you to at least have the Compulsory Third Party Insurance. Surprisingly or not, there are other optional insurance plans, which can offer you and the insured vehicle maximum cover. Most times when people are assessing car insurance options, they think of two things; Full-coverage and liability car insurance. However, there are other tailored covers designed to meet your specific needs.

It is estimated that world wide, about 1.2 million people perish in car accidents yearly. Regardless of who’s at fault during an accident, it’s simply mandatory for both sides to have some type of insurance policy. Otherwise, it could be a recipe for long court processes. In case you have just bought or considering buying your first car, these are the options you should carefully look at.

Third Party Property Damage
Also known as a liability auto insurance, this is certainly the most popular kind of auto insurance in the market. Apart from it being a state’s favorite insurance plan, it’s is has some outstanding benefits. Assuming you are involved in a car accident and you’re fault. By law, you are expected to foot all the bills and damages caused to the other party. Fortunately, with a third party insurance cover, you are not liable for the damages sustained by the other party.

The only limitation to the liability insurance is that it doesn’t guarantee you repairs on your damaged vehicle after an accident. While you may not pay even a single cent to the other party, you are left with your own damages to cover. For this reason, it is vital that you add this type of coverage on top of your car insurance policy to safeguard your vehicle in eventualities. In the event that your car will be written-off, don’t worry, you’ll be compensated with a cheque value of your car.

Personal Injury Protection
Usually, auto accidents will result in damaged vehicles and body injuries. Apart from protecting yourself against costly car damages, you can also choose to cover yourself as well. Don’t be caught up in hefty medical bills just because an auto insurance policy is limited to your car only. With this type of cover, you’re capable of footing medical bills without feeling a pinch. Although additional coverage will require you to pay high premiums, most car insurance rates are designed to fit your budget.

However, the types of car insurance available are not common in all states, so you’ll need to consult your local insurance company to ascertain which insurance policies operate within your area.

This is perhaps the most extensive insurance plan and unlike damage coverage, which only covers collision related damages, the comprehensive policy includes things like theft, fire, flood, and storm. Whether the damage is caused by natural disaster or vandalism, this policy got your covered. In addition, it also extends to compensate any third party damage caused by your car. If you occasionally park your car across the street, your is highly exposed to theft, so you’ll find this type of insurance cover very essential.

In conclusion, the benefits you’ll get from insuring your car are many. It will not only get you out of trouble, but also ensure your continuity should an accident occur. From the listed options, compare and contrast each of them so as to make an informed decision.

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